Pacific Basin shifting half of bulker fleet to Singapore to limit US port fee exposure

Pacific Basin Shipping, a company listed in Hong Kong, is relocating half of its bulk carrier fleet to Singapore. This strategic move involves reflagging vessels under its Singapore entity to mitigate the impact of new port fees imposed by the U.S. Trade Representative’s Section 301 scheme. The decision follows a review of provisions set to take effect in April 2025, which will impose additional charges on Chinese-owned or operated ships docking at U.S. ports.

Strategic Management and Operational Changes

In its latest trading update, Pacific Basin Shipping announced that only vessels owned or chartered through its Singapore structure will be permitted to operate on U.S. voyages while the Section 301 measures remain active. The company emphasized that its parent entity, Pacific Basin Shipping Limited, registered in Bermuda, will not undergo any changes. This strategic shift aims to streamline operations and reduce exposure to the new fees.

Pacific Ocean Balance of Power

To support this transition, the company will establish strategic leadership and technical management for the Singapore-based fleet in Singapore. However, the day-to-day commercial and operational management will continue to be handled across the company’s 11 global chartering and operations offices, including Singapore. Additionally, the board composition has been adjusted to further minimize exposure to the Section 301 provisions.

Pacific Basin Shipping highlighted that, as a publicly-listed entity with 99% of its shares freely floating, it cannot ascertain the ultimate beneficial ownership of most shareholders. This uncertainty plays a significant role in the applicability of the Annex I provisions. The company operates a core fleet of 120 handysize and supramax vessels, contributing to a total of nearly 260 bulk carriers currently in operation, including those on short-term charters.