Shares of Pacific Basin (02343) advanced more than 5% before the midday break, with the stock last trading up 5.99% at HK$4.33, on turnover of HK$80.79 million. The Baltic Exchange's dry bulk freight index, a key barometer for the global dry bulk shipping market, jumped to its highest level since December 2023 on Wednesday, propelled by a broad rally in freight rates across all vessel segments. The Baltic Dry Index climbed 174 points, or 5.5%, to close at 3,331 points, marking its strongest reading in nearly three years.

According to Huachuang Securities, Pacific Basin, as a prudently managed leading small bulk carrier owner with a proven track record through market cycles, is well-positioned to benefit from the ongoing uptrend in the dry bulk sector. In the first half of this year, the company generated revenue of US$1.105 billion, up 8.52% year-on-year, while net profit surged 310.35% to US$105 million. Average equivalent time charter rates for its Handysize and Supramax vessels reached US$14,150 and US$16,550 per day respectively, reflecting year-on-year increases of 28.5% and 35.3%.

For the third quarter, the company has secured charter coverage of 78% for its core Handysize segment and 82% for Supramax vessels, with average daily rates of US$15,810 and US$18,680 respectively—both figures representing a further sequential improvement over the first-half averages.