Pacific Shipping (02343) announced that the market for small and ultra-portable dry bulk carriers in the first quarter of 2024...
According to the Zhitong Finance App, Pacific Shipping (02343) announced that in the first quarter of 2024, the market freight rent for Xiaoling and ultra-portable dry bulk carriers was higher than the historical average for the same period. This was due to controllable fleet growth, increased dry bulk cargo loading, and continued interference with the Suez Canal and Panama Canal, which led to a decrease in fleet efficiency and an extension of voyage. Global shipments of iron ore, grains and small bulk cargo increased in the first quarter, including a record first-quarter load of iron, aluminum, and oxite.
In the first quarter of 2024, the average daily rent levels for Xiaoling (BHSI 38,000 dwt (adjusted)) and Super Flexible (BSI 58,000 dwt) dry bulk carriers were US$10,510 (net value) and US$1,310 (net worth), respectively, an increase of 26% and 27% over the same period in 2023.
The Group's core business obtained average daily revenue of Xiaoling and Super Flexible dry bulk carriers on an equal basis of term lease agreements of US$11050 and US$13,610, respectively. This means that the average daily revenue of small portable dry bulk carriers decreased by 18% year-on-year, and the average daily revenue of ultra-convenient dry bulk carriers did not rise or fall.
Currently, 84% and 96% of the contracted days for the core Xiaoling and Super Flexible dry bulk carriers in the second quarter of 2024 have been contracted at an average daily rent of US$12,290 and US$14,610, respectively (the number of contracted days does not include the benefits and operating activities brought about by sulfur purifiers). Of the core Xiaoling and Super Flexible dry bulk carriers in the second half of 2024, 36% and 47% have now been contracted at an average daily rent of US$9280 and US$11,840, respectively. The average daily benefit of sulfur purifiers from the Group's core Xiaoling and Super Portable dry bulk carriers is around $70 and $1,500, respectively. If cargo is distributed to a cargo ship equipped with a sulfur purifier, the rent on an equal basis in the fixed-term lease contract may be higher due to the benefits brought by the sulfur purifier.
The Group's operating activities also made a positive contribution, achieving an average daily profit of $510 out of 6,660 operating days in the first quarter of 2024. The average daily profit decreased by 53% year-on-year and the number of operating days increased by 32% year-on-year. The Group currently operates about 169 short-term leased cargo vessels and focuses on increasing the number of operating days and profits year by year. The Group's operating activities complement the Group's core business by matching customers' spot goods with short-term leased cargo vessels. Regardless of market conditions, it can earn profits and contribute to the Group's performance.