Meanwhile, vessel supply remains highly constrained with lead times ranging from 2 to 3 years, which we expect will keep fleet growth low for the foreseeable future. We are strategically focused on positioning our business to capitalize on the expected growth in global dry bulk volume and favorable rate dynamics over the coming years.ĭuring April, market rates averaged more than $13,000 per day, up from $6,200 per day in February. Despite global recessionary concerns, we are not seeing any material deceleration in cargo demand. The result was a reset of market rates during the first quarter as vessel capacity expanded in a seasonably weak period. We've seen some easing of congestion with the lifting of COVID restrictions in China. Since bottoming in February, market rates recovered materially as the market became more balanced, giving a combination of improved seasonal demand, increasing activity in Asia and tightness in global shipping capacity. Seasonal demand softness, combined with extended holiday schedules in the East, contributed to challenging market conditions in January and February. Just yesterday, Vesselindex published its report on outperformance, and we again are at the top of the 5-year historical performance list of dry bulk public companies. Our long-term COAs, specialized fleet and cargo-focused strategy helped us to perform better than index rates in a slow market environment. Our TCE earned was $14,372 per day for the 3 months ended March 31, 2023, compared to an average of $26,472 per day for the same period in 2022. After the market closed yesterday, we issued a release detailing our first quarter results.ĭuring a seasonally slower period for the global dry bulk shipping market where benchmark industry rates declined nearly 60% on a year-over-year basis, Pangaea delivered an average TCE rate that was approximately 50% higher than our broader market indices, resulting in another consecutive quarter of profitability. Thank you, Noel, and welcome to those joining us on the call and webcast today. At the conclusion of our prepared remarks, we will open the line for questions.Īnd with that, I would like to turn the call over to Mark. Except as required by law, we undertake no obligation to update our forward-looking statements. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the SEC. Today's discussion contains forward-looking statements about future business and financial expectations. Leading the call with me today is CEO, Mark Filanowski Chief Financial Officer, Gianni Del Signore and COO, Mads Petersen. Thank you, operator, and welcome to the Pangaea Logistics Solutions First Quarter 2023 Results Conference Call. It is now my pleasure to turn the floor over to Noel Ryan with Vallum Advisors. The recording can be accessed by dialing 80 or 40. Today's call is being recorded and will be available for replay beginning at 11:00 a.m. At this time, I would like to welcome everyone to the Pangaea Logistics First Quarter 2023 Earnings Teleconference. My name is Raza, and I will be your conference operator today. Pangaea Logistics Solutions Ltd ( NASDAQ: PANL) Q1 2023 Earnings Conference Call 8:00 AM ET
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