Pangaea Logistics Solutions (PANL) Q1 2025 Earnings Call May 13, 2025 08:00 AM ET Company Participants Stefan Neely - PartnerMark Filanowski - CEO & DirectorGianni Del Signore - CFOMads Petersen - Chief Operating Officer Conference Call Participants Liam Burke - MD - Research AnalystPoe Fratt - Equity Research Analyst - TransportationMichael Mathison - Analyst Operator Good morning. My name is Chelsea, and I will be your conference operator today. At this time, I would like to welcome everyone to the Pandea ...

Financial Data and Key Metrics Changes - For Q1 2025, the company reported an adjusted net loss of approximately $2 million and adjusted EBITDA of $14.8 million, with average market pricing declining by 37% compared to the prior year period [5][12] - Total shipping days increased by 24.6% year over year, primarily due to the addition of SSI handy fleet vessels, with a comparable basis showing a 41% increase [5][6] - The reported GAAP net loss attributable to the company was approximately $2 million, or a loss of $0.03 per diluted share, compared to net income of $11.7 million, or $0.25 per diluted share in the first quarter of last year [12][13] Business Line Data and Key Metrics Changes - TCE rates for Q1 2025 were $11,390 per day, a premium of approximately 33% over average published market rates for Panamax, Supramax, and Handysize vessels [11] - Vessel operating expenses increased by approximately 75% year over year, primarily due to the acquisition of the SSI fleet, which increased total owned days by 61% [12] Market Data and Key Metrics Changes - The dry bulk sector continues to experience elevated levels of volatility and uncertainty, with the company closely monitoring potential indirect effects from proposed tariffs [7][8] - Over 95% of the company's tonnage is tied to nonagricultural bulks, insulating it from some demand and policy volatility faced by other dry bulk operators [8] Company Strategy and Development Direction - The company is focused on prudent capital allocation, with a new share repurchase program authorized for up to $15 million and a declared dividend of $0.05 [9] - Strategic fleet transactions will be evaluated to support long-term efficiency and preserve a competitive age profile, while investments in port and logistics business are ongoing [10] Management's Comments on Operating Environment and Future Outlook - Management noted that demand trends have remained steady across key routes, although pricing reflects global macro and trade policy uncertainties [8] - The company aims to implement cost savings of at least $2.5 million annually by year-end through operational synergies and cost reductions [7][20] Other Important Information - The company completed 160 days of planned off-hire for vessel drydocking during the quarter, optimizing fleet availability for stronger demand periods [6] - Total cash from operations decreased by $13.2 million year over year, leading to net cash used in operations of $4.3 million [13] Q&A Session Summary Question: Dividend strategy and buyback plans - Management discussed the modification of the cash return strategy, emphasizing the importance of reinvesting in the business while also considering share buybacks due to recent share price movements [16][17] Question: Clarification on dividend cut - Management explained that the decision to reduce the dividend was influenced by a new thought process on the board regarding share buybacks and the need for a prudent approach to capital returns [22][23] Question: Long-term contract cover - Management indicated that the average contract cover for the owned fleet is around 30%, with significant cover expected to kick in during the summer ice season in Q3 [35][40] Question: Debt repayment strategy - Management confirmed that debt repayments will continue at a consistent rate, with no significant changes expected until a balloon payment in early 2027 [37]

1Q25 Earnings Call Presentation Safe Harbor 1Q25 Earnings Call Presentation This presentation may include certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth and future acquisitions. These statements are based on Pangaea's and managements' current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those ...

Pangaea Logistics (PANL) came out with a quarterly loss of $0.03 per share versus the Zacks Consensus Estimate of a loss of $0.15. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 80%. A quarter ago, it was expected that this maritime logistics company would post a loss of $0.06 per share when it actually produced earnings of $0.16, delivering a surprise of 366.67%.Over the last four quarters, ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements for Q1 2025 show total revenue increased to **$122.8 million**, but higher operating expenses led to a **net loss of $2.2 million**, reversing the prior year's net income [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) Q1 2025 saw a **net loss of $2.0 million** attributable to Pangaea, a significant downturn from Q1 2024's net income, driven by increased operating expenses despite 17% revenue growth Q1 2025 vs Q1 2024 Statement of Operations Highlights | Metric | Q1 2025 (unaudited) | Q1 2024 (unaudited) | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $122.8M | $104.7M | +17.2% | | **Total Expenses** | $119.9M | $93.7M | +27.9% | | **Income from Operations** | $2.9M | $11.0M | -73.5% | | **Net (Loss) Income** | ($2.2M) | $12.7M | -117.4% | | **Net (Loss) Income Attributable to Pangaea** | ($2.0M) | $11.7M | -117.0% | | **Diluted (Loss) Earnings Per Share** | ($0.03) | $0.25 | -112.0% | Balance Sheet Summary | Metric | March 31, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $63.9M | $86.8M | | **Total current assets** | $175.9M | $192.0M | | **Total assets** | $918.0M | $936.5M | | **Total current liabilities** | $109.0M | $109.1M | | **Total stockholders' equity** | $467.2M | $474.7M | Q1 2025 vs Q1 2024 Cash Flow Summary | Metric | Q1 2025 (unaudited) | Q1 2024 (unaudited) | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | ($4.4M) | $9.0M | | **Net cash used in investing activities** | ($0.5M) | ($0.2M) | | **Net cash used in financing activities** | ($18.0M) | ($12.0M) | | **Net change in cash and cash equivalents** | ($22.9M) | ($3.2M) | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail operations, accounting policies, and financial position, including a **41-vessel fleet**, **$386.7 million in debt**, covenant compliance, and a **$0.05 per share dividend** declared post-quarter - As of March 31, 2025, the company's owned fleet comprises **41 drybulk vessels** (including those from the December 2024 Strategic Shipping merger) and one barge. This includes vessels held through its two-thirds ownership in Nordic Bulk Holding Company Ltd. (NBHC)[21](index=21&type=chunk)[22](index=22&type=chunk)[47](index=47&type=chunk) - The company was in compliance with all financial covenants for its debt and financing obligations as of March 31, 2025[53](index=53&type=chunk)[56](index=56&type=chunk) - On May 8, 2025, the Board of Directors declared a quarterly cash dividend of **$0.05 per share** and authorized a new share repurchase program for up to **$15.0 million** of the company's common stock[84](index=84&type=chunk)[85](index=85&type=chunk) - The company's accounts receivable balance includes a concentration of credit risk, with one significant customer comprising **29%** of the total as of March 31, 2025[26](index=26&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the Q1 2025 net loss to challenging market conditions, including a **39% lower BDI**, despite **17% revenue growth** driven by fleet expansion, offset by surging operating expenses [Industry Overview and Key Metrics](index=32&type=section&id=Industry%20Overview%20and%20Key%20Metrics) Q1 2025 saw dry bulk industry headwinds with a **39% BDI decrease**, yet the company's **$11,390 TCE rate** outperformed market averages by **33%** due to strategic contracts and fleet expansion Market Index Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 Average | Q1 2024 Average | Change | | :--- | :--- | :--- | :--- | | **Baltic Dry Index (BDI)** | 1,118 | 1,824 | -39% | | **Panamax, Supramax, Handysize Rates** | $8,548 | $13,671 | -37% | - The company's achieved TCE rate for Q1 2025 was **$11,390**, a **36% decrease** from **$17,697** in Q1 2024, but it outperformed the average market rates by approximately **33%**[107](index=107&type=chunk) - Operating results were significantly impacted by a fleet expansion at the end of 2024, which added **15 vessels** and increased owned shipping days by **1,275** in Q1 2025 compared to Q1 2024[105](index=105&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Q1 2025 total revenue increased **17% to $122.8 million** due to higher shipping days, but operating expenses, particularly voyage and vessel operating costs, surged significantly, while charter hire expenses decreased Revenue Breakdown (Q1 2025 vs Q1 2024) | Revenue Type | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Voyage Revenues** | $109.7M | $87.3M | +26% | | **Charter Revenues** | $10.0M | $15.0M | -34% | | **Terminal & Stevedore** | $3.1M | $2.4M | +30% | | **Total Revenue** | **$122.8M** | **$104.7M** | **+17%** | Key Expense Breakdown (Q1 2025 vs Q1 2024) | Expense Type | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Voyage Expenses** | $60.3M | $37.1M | +62% | | **Charter Hire Expenses** | $17.6M | $27.1M | -35% | | **Vessel Operating Expenses** | $22.2M | $12.7M | +75% | - The increase in voyage revenue was driven by a **48% increase** in voyage days (**4,196 vs 2,830**), resulting from the fleet expansion[110](index=110&type=chunk) - The decrease in charter hire expense was driven by a **37% decline** in average market rates for chartered-in vessels, despite a **14% increase** in chartered-in days[116](index=116&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) Working capital decreased to **$66.9 million** as of March 31, 2025, with Q1 2025 experiencing a **$4.4 million net cash outflow** from operations and increased financing activities, including **$6.4 million** in drydocking costs Working Capital | Date | Working Capital | | :--- | :--- | | **March 31, 2025** | $66.9 million | | **December 31, 2024** | $82.9 million | Cash Flow Summary (in millions) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Operating Activities** | ($4.4) | $9.0 | | **Investing Activities** | ($0.5) | ($0.2) | | **Financing Activities** | ($18.0) | ($12.0) | - Capitalized drydocking costs were a major capital expenditure, totaling approximately **$6.4 million** in Q1 2025, compared to **$1.3 million** in Q1 2024[130](index=130&type=chunk) [Quantitative and Qualitative Disclosures about Market Risks](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risks) No significant changes to the company's market risk profile were reported since December 31, 2024, with further details available in the Annual Report on Form 10-K - There have been no significant changes to the company's market risk profile since December 31, 2024[133](index=133&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed ineffective as of March 31, 2025, due to a material weakness in internal control over financial reporting related to ASC 606 revenue recognition, with remediation efforts underway - The CEO and CFO concluded that disclosure controls and procedures were not effective as of March 31, 2025, due to a previously identified material weakness in internal control over financial reporting[134](index=134&type=chunk) - The material weakness relates to the design and documentation of controls over the review and application of the revenue recognition policy under ASC 606[134](index=134&type=chunk) - Remediation actions were implemented in Q1 2025, including enhanced review procedures for revenue recognition, but the material weakness is not yet considered fully remediated[135](index=135&type=chunk) [PART II - OTHER INFORMATION](index=37&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various ordinary course legal disputes, primarily cargo claims, which are not expected to materially impact financial position or results - The company is subject to various legal disputes, mainly cargo claims, which are considered part of the ordinary course of business[137](index=137&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported, with comprehensive details available in the Annual Report on Form 10-K for December 31, 2024 - The report refers to the Risk Factors section of the Annual Report on Form 10-K for the year ended December 31, 2024, for a comprehensive discussion of potential risks[138](index=138&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities were reported during the period - None [Defaults upon Senior Securities](index=37&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - None [Mine Safety Disclosures](index=37&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - None [Other Information](index=37&type=section&id=Item%205.%20Other%20Information) No other information required for disclosure under this item was reported - None [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) The report lists filed exhibits, including CEO and CFO certifications under the Sarbanes-Oxley Act and XBRL instance documents - Exhibits filed with the report include certifications from the Chief Executive Officer and Chief Financial Officer as required by the Sarbanes-Oxley Act[143](index=143&type=chunk)

Pangaea Logistics Solutions Ltd. Reports Financial Results for the Quarter Ended March 31, 2025 NEWPORT, RI - May 12, 2025 - Pangaea Logistics Solutions Ltd. ("Pangaea" or the "Company") (Nasdaq: PANL), a global provider of comprehensive maritime logistics solutions, announced today its results for the three months ended March 31, 2025. For the three months ended March 31, 2025, Pangaea reported non-GAAP adjusted net loss of $2.2 million, or $0.03 per share, on total revenue of $122.8 million. First quarter ...

NEWPORT, R.I., May 12, 2025 /PRNewswire/ -- Pangaea Logistics Solutions Ltd. ("Pangaea" or the "Company") (Nasdaq: PANL), a global provider of comprehensive maritime logistics solutions, announced today its results for the three months ended March 31, 2025.FIRST QUARTER 2025 RESULTS Net loss attributable to Pangaea of $2.0 million, or $0.03 per share Adjusted net loss attributable to Pangaea of $2.2 million, or $0.03 per share Adjusted EBITDA of $14.8 million Time Charter Equivalent ("TCE") rates earned by ...

Core Insights - Pangaea Logistics Solutions will release its first quarter 2025 financial results on May 12, 2025, after market close [1] - A conference call to discuss the results will take place on May 13, 2025, at 8:00 a.m. ET [1] - The company provides comprehensive maritime logistics solutions for various industrial customers, focusing on the transportation of dry bulk cargoes [3] Company Overview - Pangaea Logistics Solutions Ltd. (Nasdaq: PANL) specializes in logistics services for a wide range of dry bulk cargoes, including grains, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone [3] - The company offers a full suite of services, including cargo loading, cargo discharge, vessel chartering, and voyage planning [3] Conference Call Details - Presentation materials for the conference call will be available on the company's website and SEC filing [2] - Domestic and international phone numbers for live participation are provided, along with a conference ID [2] - A replay of the teleconference will be accessible until May 20, 2025 [2]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Pangaea Logistics Solutions (PANL) as a strong value stock based on its favorable valuation metrics and earnings outlook [2][3][7] Valuation Metrics - PANL has a Price-to-Book (P/B) ratio of 0.58, which is significantly lower than the industry average of 1.23, indicating it may be undervalued [4] - The Price-to-Sales (P/S) ratio for PANL is 0.51, compared to the industry's average of 0.98, further suggesting undervaluation [5] - PANL's Price-to-Cash Flow (P/CF) ratio stands at 3.23, which is attractive relative to the industry average of 3.51 [6] Earnings Outlook - The strong earnings outlook for PANL, combined with its favorable valuation metrics, positions it as an impressive value stock in the current market [7]

Environmental Regulations - The Mediterranean Sea will become an Emission Control Area (ECA) on May 1, 2024, with compliance obligations starting May 1, 2025, potentially increasing operational costs [66]. - New Tier III Nitrogen Oxide (NOx) emissions standards for marine diesel engines apply to ships built on or after January 1, 2016, with additional areas potentially designated for Tier III NOx in the future [67]. - By 2025, all new ships built will be 30% more energy efficient than those built in 2014, as mandated by MARPOL regulations [69]. - The Energy Efficiency Existing Ship Index (EEXI) and operational carbon intensity indicator (CII) will require ships of 400 gross tonnage and above to meet specific energy efficiency standards [70]. - Compliance with the revised standards may incur significant costs, impacting the company's financial condition and cash flows [73]. - The Ballast Water Management Convention requires ships to manage ballast water to prevent the spread of invasive species, with compliance costs expected to be substantial [84]. - As of September 8, 2024, all ships must meet the D-2 standard for ballast water management, which may involve installing on-board treatment systems [86]. - MEPC 80 approved a comprehensive review of the Ballast Water Management Convention, with amendments expected to enter into force in February 2025 [88]. - The company plans to invest in its existing fleet to improve fuel efficiency and comply with revised environmental standards [73]. - Future cybersecurity regulations may require additional expenses and capital expenditures for the company [82]. - The cost of ballast water treatment systems installed on vessels ranges from $0.5 million to $0.7 million each, depending on vessel size [89]. - The EU committed to reduce its net greenhouse gas emissions by at least 55% by 2030 through its "Fit-for-55" legislation package [121]. - Starting January 1, 2025, greenhouse gas emissions from covered vessels are required to be reduced by 2%, with additional reductions every five years up to 80% by January 1, 2050 [115]. - The EU Emissions Trading System will require shipowners to buy permits to cover their emissions, with obligations gradually increasing from 40% in 2024 to 100% in 2026 [115]. - Compliance with the Maritime EU ETS will result in additional compliance and administration costs for the company [115]. - Increasing scrutiny on Environmental, Social and Governance (ESG) policies may impose additional costs and risks on the company [296]. - The SEC has enhanced its focus on climate-related disclosures, which may impact the company's reporting requirements [297]. - The company may face pressures to prioritize sustainable energy practices and reduce its carbon footprint due to investor focus on climate change [301]. Liability and Insurance - Effective March 23, 2023, the adjusted limits of OPA liability for non-tank vessels are set at the greater of $1,300 per gross ton or $1,076,000 [102]. - The Company maintains pollution liability coverage insurance in the amount of $1.0 billion per incident for each vessel [107]. - Compliance with the EPA and U.S. Coast Guard regulations may require substantial costs for installing ballast water treatment equipment [111]. - The U.S. Clean Water Act imposes strict liability for unauthorized discharges, complementing the remedies available under OPA and CERCLA [110]. - The U.S. Oil Pollution Act of 1990 establishes a liability regime for oil spills, affecting all vessel owners and operators within U.S. waters [100]. - The limits of liability under CERCLA for vessels carrying hazardous substances are set at the greater of $300 per gross ton or $5.0 million [104]. - Noncompliance with the ISM Code may lead to increased liability and denial of access to certain ports [97]. - The Company maintains hull and machinery insurance, war risks insurance, and protection and indemnity cover for its fleet, addressing normal operational risks [136]. - The current protection and indemnity insurance coverage for pollution is $1.0 billion per vessel per incident, with coverage being unlimited for other liabilities [139]. - The Company’s vessels are certified by classification societies, ensuring compliance with insurance underwriters' requirements [134]. Financial Performance and Risks - The company expects to perform nine special surveys in 2025 at an aggregate total cost of approximately $13.0 million [133]. - The company anticipates performing four intermediate surveys in 2025 at an aggregate total cost of approximately $1.5 million [133]. - Offhire related to the surveys and related repair work is estimated to be ten to twenty days per vessel, depending on the size and condition of the vessel [133]. - Labor interruptions could disrupt operations, potentially affecting financial condition and cash flows [295]. - Limitations in capital markets could affect the company's growth plans and ability to implement business strategies [302]. - The company does not carry loss-of-hire insurance, which could lead to significant revenue loss during extended vessel off-hire periods, adversely affecting financial performance [304]. - A significant portion of the company's revenue, approximately 47%, is derived from its top ten repeat customers, indicating reliance on a limited customer base [309]. - The company is subject to financial covenants, including a consolidated leverage ratio of not more than 200% and a minimum consolidated net worth of $45 million, which could limit operational flexibility [320]. - The company may face significant fluctuations in quarterly results due to long-term contracts, which could adversely affect liquidity and financial obligations [329]. - The company is exposed to counterparty risks in various contracts, which could lead to losses if counterparties fail to meet their obligations [312]. - The company’s ability to pay dividends depends on the profitability of its subsidiaries, which conduct all operations and own operating assets [311]. - The company’s growth strategy relies on expanding its fleet, which may require additional financing and could impact financial flexibility [324]. - The company uses forward freight agreements (FFAs) to manage market exposure, but incorrect assumptions could lead to material losses [326]. - The company may struggle to secure suitable vessels for chartering, which is critical for maintaining profitability and fulfilling contractual obligations [308]. - A significant portion of the company's revenues are derived from Contracts of Affreightment (COAs), which provide a stable revenue source but may expose the company to operating risks if vessel rates are not correctly anticipated [330]. Taxation and Compliance - The Company is classified as a non-resident of Bermuda for exchange control purposes, allowing for unrestricted fund transfers and dividend payments [142]. - The Company anticipates a significant portion of its gross income will derive from shipping income, primarily from freights and charters [159]. - The Company’s eligibility for U.S. federal income tax exemption under Section 883 depends on satisfying specific stock ownership requirements [164]. - The Company believes it satisfied the Publicly-Traded Test for the 2023 taxable year, with common shares primarily traded on Nasdaq [165]. - The common shares are considered "regularly traded" if more than 50% of outstanding shares are listed, and trading frequency and volume tests must be met [167]. - The Company does not believe it was subject to the 5 Percent Override Rule for the 2023 taxable year, which could affect its tax-exempt status [170]. - If the 5 Percent Override Rule is triggered, the Company must demonstrate sufficient qualified shareholders to maintain exemption under Section 883 [171]. - The maximum effective rate of U.S. federal income tax on the Company's shipping income, if not exempt, would not exceed 2% under the 4% gross basis tax regime [175]. - The Company expects that any sale of a vessel will be considered to occur outside of the United States, thus avoiding U.S. federal income taxation on gains from such sales [178]. - Distributions to U.S. Holders will generally constitute dividends, taxable as ordinary income or qualified dividend income depending on specific conditions [182]. - U.S. Holders may recognize taxable gain or loss upon the sale of common shares, treated as long-term or short-term capital gain depending on the holding period [185]. - The Company intends to avoid being classified as a Passive Foreign Investment Company (PFIC) for the current and future taxable years [187]. - There is a significant risk that the IRS or a court could determine that the Company is a PFIC, which would subject U.S. Holders to different taxation rules [190]. - The company is subject to special tax rules if treated as a PFIC, impacting U.S. Holders who do not make timely QEF or Mark-to-Market Elections [193]. - Non-U.S. Holders generally will not face U.S. federal income or withholding tax on dividends unless connected to a U.S. trade or business [197]. Fleet and Operations - The company operates a fleet of 41 owned vessels with a combined carrying capacity of 2.4 million deadweight tons (dwt) and a weighted average age of 11 years [341]. - The estimated useful life of the company's vessels is between 25 to 30 years, with remaining useful lives ranging from 8 to 22 years [344]. - The company may face increased operating costs as its fleet ages, which could adversely affect its earnings and ability to obtain profitable charters [340]. - The performance and length of COAs and charters may materially affect the company's ability to obtain additional capital resources required for vessel purchases [345]. - The company does not maintain reserves for vessel replacements and intends to finance replacements through internally generated cash flow or borrowings [344]. - The company is exposed to currency exchange rate fluctuations, which could lead to fluctuations in revenues and operating expenses [348]. - The company may be involved in litigation that could have a material adverse effect on its business and financial condition [349]. Market Conditions - Dry bulk trade is influenced by global economic activity, with the demand for commodities such as coal, iron ore, and grain driving shipping operations [145]. - The Baltic Dry Index (BDI) serves as a proxy for dry bulk shipping stocks and reflects average freight rates for major trading routes [156]. - Ice class vessels are deployed in regions with strong trade growth, particularly in the Baltic Sea and the Northern Sea Route, driven by increased mining activities [157]. - The Company operates under various chartering options, primarily employing its vessels under voyage charters, COAs, and time charters [151]. - The company is monitoring market volatility related to bunker prices and has a hedging program in place to manage marine fuel price exposure [294].