PACIFIC BASIN(HK:02343) Zhi Tong Cai Jing·2024-04-18 08:48Core Viewpoint - Pacific Shipping (02343) reported that the market freight rates for small and ultra-small bulk carriers in Q1 2024 exceeded historical averages due to controlled fleet growth, increased bulk cargo loading, and ongoing disruptions in the Suez and Panama Canals, leading to decreased fleet efficiency and extended voyages [1] Summary by Category Market Performance - In Q1 2024, the average daily freight rates for small bulk carriers (BHSI 38,000 dwt) and ultra-small bulk carriers (BSI 58,000 dwt) were $10,510 and $12,310 respectively, representing increases of 26% and 27% compared to Q1 2023 [1] - The core business achieved average daily income for small and ultra-small bulk carriers of $11,050 and $13,610 respectively, indicating a year-on-year decrease of 18% for small bulk carriers while ultra-small bulk carriers remained stable [1] Future Contracts - For Q2 2024, 84% and 96% of the core small and ultra-small bulk carriers have been contracted at average daily rates of $12,290 and $14,610 respectively, excluding benefits from scrubbers and operational activities [1] - In the second half of 2024, 36% and 47% of the core small and ultra-small bulk carriers have been contracted at average daily rates of $9,280 and $11,840 respectively [1] Operational Contributions - The operational activities contributed positively, with an average profit of $510 per day from 6,660 operational days in Q1 2024, although this represents a 53% year-on-year decrease despite a 32% increase in operational days [1] - The company currently operates approximately 169 short-term chartered vessels, focusing on increasing operational days and profits annually [1] - The operational activities supplement the core business by matching customers' spot cargo with short-term chartered vessels, allowing the company to earn profits regardless of market conditions [1]