PacBasin down but outperforms indices

Image: Dale Crisp

Posted by Dale Crisp
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8 August, 2025

AFTER what it characterises as a half-year where dry bulk markets were weaker in 2025 than the previous four years Pacific Basin Shipping remains optimistic and foresees no long-term market decline.

The Hong Kong-listed dry bulk specialist saw substantial falls year-on-year in the first half, most notably with underlying profit almost halving from USD 43.9 million in G1 2024 to USD 21.9 million this year. Net profit was USD 25.6 million and EBITDA USD 121.5 million. Revenue YoY dropped from USD 1,281.5 million to USD 1,108.7 million.

PacBasin attributed the weakness to “an unusual confluence of commodity-specific factors” affecting the three major dry bulk commodities in the first quarter, before recovering in the second quarter.

Average Handysize and Supramax [PacBasin’s core segments] daily time-charter equivalent earnings were US$11,010 and US$12,230 per day respectively for the first half 2025, representing a decrease of 7% and 11% respectively compared to the same period in 2024. But the company says it significantly outperformed the average Handysize (BHSI 38k dwt tonnage-adjusted) and Supramax (BSI 58k dwt) indices by US$2,320 per day and US$3,480 per day, or 27% and 40% respectively, “consistent with our usual high level of outperformance”.

Looking ahead, PacBasin said despite weaker markets in the first half of 2025, it remains optimistic about the future of the dry bulk sector.

“In the near term, the market is firming and, while downside risk remains, we do not foresee any significant market decline. Longer term, the geared bulk carrier segments in which we are engaged stand to benefit from faster growing minor bulk and grain demand, with the global green energy infrastructure buildout as well as continuing rapid urbanisation in developing economies boosting trade in steels, cement and construction materials.

“The supply-side outlook is similarly encouraging, with the recent flurry of newbuilding deliveries absorbed by the market without significant distress, while dry bulk newbuild ordering activity is now limited by tight availability of shipyard capacity that has been largely taken up by other shipping sectors. Additionally, the pressure and cost of decarbonisation regulations on a growing number of older, less-efficient, conventional-fuel ships also add to the potential for structural undersupply in minor bulk shipping.”

With regard to US regulator developments PacBasin said the USTR Section 301 investigation into China’s dominance in shipbuilding and the SHIPS For America Act, currently at committee stage in Congress, “both have the potential to increase costs for our business and significantly impact the dry bulk shipping industry.

“We have been closely monitoring and preparing for these USTR 301-related developments and readying contingency plans to maintain our competitiveness in the changing trade and tariff landscape. The detailed final rules due to be implemented in October will depend on how USTR 301 and trade tariff negotiations between the United States and China unfold in the coming months.

“Our ultimate objective is to ensure that Pacific Basin ships can continue to service our global customers freely and competitively to and via all safe ports and countries, including the United States.”