Pacific Basin Shipping Expands Fleet with New Chinese Orders
Pacific Basin Shipping, a prominent Hong Kong-based owner-operator of over 250 bulk carriers, has made a significant shift in its shipbuilding strategy by signing a contract with Jiangmen Nanyang Ship Engineering (JNS) for four handysize bulk carriers. This deal, valued at approximately $119.2 million, marks the company’s first order from a Chinese shipyard in over a decade, breaking its long-standing preference for Japanese yards. The new vessels, each with a deadweight tonnage of 40,000, are expected to be delivered in the first half of 2028.
This new order comes as Pacific Basin aims to enhance its fleet with modern, efficient vessels. The handysize bulk carriers will feature innovative designs that include fuel-efficient, open-hatch capabilities and are equipped to handle logs, providing greater cargo intake and flexibility compared to traditional handysize tonnage. The decision to order from JNS is particularly noteworthy, as the last vessels built by the yard for Pacific Basin were delivered between 2008 and 2010.
Strategic Growth Amid Regulatory Changes
The recent order effectively doubles Pacific Basin’s current newbuilding program, which already includes four dual-fuel ultramax vessels ordered in November 2024. However, unlike these ultramax ships, the new handysize vessels will be conventionally powered. This decision reflects the company’s cautious approach amid regulatory uncertainties following the International Maritime Organization’s (IMO) recent postponement of its planned Net Zero Framework, originally set for October 2025.
Chief Executive Martin Fruergaard emphasized that this order aligns with the company’s strategy of disciplined fleet renewal and growth. He described the acquisition as a timely opportunity to replace some of the older, smaller ships that have recently been sold. The flexibility of the new vessel designs is expected to enhance triangulated trading and improve time charter equivalent (TCE) performance, which is crucial for the company’s operational efficiency.
Fruergaard also highlighted the attractive pricing for the 2028 deliveries, noting the company’s familiarity with JNS as a reliable shipbuilder. This partnership is anticipated to bolster Pacific Basin’s competitive edge in the bulk shipping market, allowing the company to adapt to evolving industry demands while maintaining a focus on sustainability and efficiency.
