PacBasin warned however that financial results-wise the year was essentially fully factored in. "Due to the lag between securing cargoes and performing voyages, and with most of our fourth quarter revenue days already covered, these stronger rates will have a marginal effect on our 2017 results," the company said.
In its key handysize and supramax segments PacBasin generate average daily TCE earnings of $8,130 and $9,350 per day net in the third quarter, a rise of 15% and 27% respectively from the previous corresponding period, the group said.
Meanwhile, leveraging on its time proven model, the company continued to outperform its benchmarks, with year-to-date average handysize and supramax daily net TCE earnings increasing 25% and 41% year-on-year to $8,010 and $9,060, outperforming the BHSI and BSI spot market indices by 19% and 8% respectively
Drilling down to the individual trades, PacBasin said the traditionally slower summer period benefitted from strong American grains exports, including record high third-quarter volumes from Brazil.
Meanwhile in the Pacific, while earnings were lower than Atlantic freight earnings, they improved to third-quarter levels last seen in 2011. "This Pacific buoyancy was supported by solid growth in the Bauxite trade and Chinese imports of especially minor bulks which in January to August increased 18% year on year to their highest level since 2013," PacBasin noted.
On the supply side the outlook improved as well, as fewer newbuilding deliveries resulted in a lower concentration of new tonnage supply in the Pacific.
"The market improvement in the year to date is encouraging and we continue to believe that we are past the worst in the dry bulk cycle. If demand growth can be maintained, we expect the gradual market recovery to continue albeit with some volatility along the way," PacBasin concluded.