Pacific Basin, Hong-Kong based dry bulk shipping company, published its 2019 interim results, and revealed its plans to fit scrubbers on a majority of its Supramaxes by the end of 2019.
In light of the approaching IMO 2020 regulation and the environmental changes coming, the company will not only equip some of its vessels with scrubbers, but also will install ballast water management systems on Handysize and Supramax vessels.
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In the meantime, the first half of 2019 the company saw a robust customer-focused business model and competitive cost structure, but adversely affected by markedly weaker dry bulk freight market conditions. Net profit for the period dropped to USD 8.2 million, compared to USD 30.8 million reported a year earlier, while the company’s average Handysize and Supramax daily TCE earnings of USD 9,170 and USD 10,860 per day net were down 6% and 7% year-on-year.
Yet, despite the first half, the company expects stronger freight market conditions. According to the company’s statement
We expect to see seasonally stronger freight market conditions in the second half of 2019, although with continued volatility influenced by further uncertainty about the US-China trade war, slower economic growth than in recent years and the impact of African Swine Fever on soybean imports to China.
Also, during H1 2019, the company managed to expand its fleet with four secondhand vessels, and also conducted a sale of an older, small Handysize.
Two further Supramax acquisitions delivered into the company’s fleet in July, expanding the owned fleet to 115 ships. Including chartered ships, Pacific Basin operated an average of 230 Handysize and Supramax ships overall during the first half of the year.
In general, concerning the 2020 sulphur cap, Trident Alliance recently commented that all states must implement the regulation, given that Indonesia announced that will not comply with the regulation, concerning its domestic vessels.
