HK Stock Market Move | Pacific Basin Shipping (02343) rises over 5% as escalating geopolitical tensions push up VLCC rates; the company has partially locked in higher freight rates for the second half of the year.

Pacific Basin Shipping (02343) rose over 5%, up 5.05% as of press time, at HK$4.365, with a turnover of HK$24.0566 million. On the news front, according to Shipping Herald, while the Strait of Hormuz standoff remains unresolved, tensions in the Bab-el-Mandeb Strait have escalated sharply. Shipbroker Gibson said the VLCC market has reached unprecedented levels, with TD3C surging above US$1.24 million per day, driven primarily by increasingly severe geopolitical turmoil. CICC noted that minor bulk dry bulk freight rates have continued to rise recently. As of September 17, the BSI and BHSI freight rate indices were up 2.9% and 5.3% week-on-week, and up 18.1% and 21.7% year-on-year, respectively. The bank is bullish on Pacific Basin Shipping benefiting from rising freight rates and achieving a strong profit performance for the full year. CICC added that, according to Pacific Basin Shipping's announcement, the company has locked in approximately 78% and 82% of its Handysize and Supramax vessel days for 3Q26, corresponding to average daily TCE of US$15,810 per day and US$18,680 per day, which should allow it to capture the third-quarter freight rate increase well, with the spot portion expected to deliver even greater earnings elasticity. In addition, the company continues to promote fleet renewal. Its current orderbook includes 6 Handysize and 4 Ultramax vessels, expected to be delivered between 2028 and the first half of 2029, and it retains options for 2 methanol dual-fuel Ultramax vessels.