Pacific Basin Shipping Expands Fleet with Chinese Order
In a significant shift from its traditional sourcing strategy, Pacific Basin Shipping has signed a deal with Jiangmen Nanyang Ship Engineering (JNS) in China to build four new handysize bulk carriers. This marks the company’s first order from a Chinese yard in over a decade, reflecting a strategic move to enhance its fleet with modern, efficient vessels. The total cost for the new 40,000 dwt ships is approximately $119.2 million, with deliveries scheduled for the first half of 2028.
Strategic Fleet Expansion Amid Industry Changes
Pacific Basin Shipping, a Hong Kong-listed operator with a fleet exceeding 250 vessels, has made a noteworthy decision to expand its newbuilding program. The recent contract with JNS doubles the size of its current orders, which already includes four dual-fuel ultramax vessels acquired in November 2024. Unlike these ultramaxes, the new handysize carriers will utilize conventional power due to concerns about regulatory uncertainties following the International Maritime Organization’s (IMO) recent postponement of its Net Zero Framework, originally set for October 2025.
Chief Executive Martin Fruergaard expressed that this order aligns with the company’s disciplined approach to fleet renewal and growth. He emphasized the importance of acquiring modern, fuel-efficient vessels that offer greater cargo flexibility. “We see this four-ship deal as a well-timed opportunity to acquire modern, efficient and flexible handysize vessels to replace some of our recently sold older, smaller ships,” Fruergaard stated. He also highlighted the advantageous pricing of the vessels given their delivery timeline and noted the company’s history with JNS, having previously commissioned similar vessels from the yard between 2008 and 2010.
Enhanced Design for Operational Efficiency
The newly commissioned vessels are designed to feature open-hatch and logs-fitted capabilities, which will provide increased cargo intake and operational flexibility compared to standard handysize tonnage. The design is expected to support more diverse trading routes, enhancing the company’s overall time charter equivalent (TCE) performance. This strategic decision not only marks a significant investment for Pacific Basin but also reflects its adaptability in navigating the evolving shipping landscape.
As the shipping industry continues to face environmental and regulatory challenges, Pacific Basin’s latest move underscores its commitment to modernizing its fleet while remaining responsive to market dynamics. With the upcoming delivery of these vessels, the company aims to strengthen its competitive positioning in the bulk shipping sector.
