Hong Kong-based dry bulk vessel owner and operator Pacific Basin Shipping has opted to make adjustments to its fleet expansion program, replacing its two previous vessel orders to secure six Handysize vessels and four conventional Ultramax newbuilds, with an option to acquire two dual-fuel Ultramax ships.

Pacific Basin has converted its 2024 acquisition of four 64,000 DWT dual-fuel Ultramax vessels to include four conventionally-fuelled 64,000 DWT Ultramax newbuilds for an aggregate consideration of $156.8 million ($39.2 million each) with expected delivery between 2028 and mid-2029.

As a result, the company entered into agreements with Nihon Shipyard Co. and Mitsui  & Co. to terminate and replace the previous deals in light of renewed uncertainty around the timing and final shape of a global regulatory framework to drive the maritime green fuel transition.

The new deal includes an option to acquire two 64,000 DWT dual-fuel (methanol/fuel oil) Ultramax newbuildings, exercisable by the end of February 2027, for a total consideration of $91 million ($45.5 million each) and with expected delivery between April 2030 and March 2031. All of these will be built by Imabari in Japan.

Martin Fruergaard, CEO of Pacific Basin, commented: “The disciplined renewal and growth of our fleet with modern, efficient ships is a core priority for Pacific Basin, so that we can continue to meet strong customer demand, comply with tightening fuel-efficiency regulations, increase our market outperformance and deliver long-term shareholder value. These newbuilding commitments align well with that priority, and the importance of having such vessels of super-efficient designs cannot be overstated in the current high-fuel-cost environment.

“The transactions have been agreed on attractive terms in today’s market for newbuildings delivering in 2028 and first half 2029, and with shipbuilders of strong reputation who we know well. Converting our order for four dual-fuel Ultramax newbuildings to conventionally-fuelled vessels reduces unnecessary near-term capital expenditure and is a financially prudent response to renewed uncertainty around the timing and final shape of a global regulatory framework to drive the maritime green fuel transition following the failure to adopt IMO’s previously agreed Net-Zero Framework (NZF) in October 2025 amid political divisions between member states.”

Pacific Basin has also increased its orders for 40,000 DWT Handysize ships to be built by Jiangmen Nanyang Ship Engineering (JNS) in China from four to six newbuildings on the same terms as the order announced in December 2025.

These shipbuilding contracts entail a total consideration of $59.6 million ($29.8 million each) and are expected to be delivered in the second half of 2028. The vessels will share the same fuel-efficient, open-hatch, and logs-fitted design as the four previously ordered Handysize newbuildings.

Fruergaard added: “While we expect a NZF-type global mechanism to be adopted in some form in due course and we remain committed to our decarbonisation journey, we believe it is in our shareholders’ best interests to avoid near‑term investment in higher‑cost dual-fuel vessels until clearer regulatory support emerges.

“The option to acquire two dual-fuel methanol newbuildings preserves our flexibility to re-enter that market at the appropriate time, while we continue to invest in energy-efficiency measures and position ourselves for priority access to alternative fuels and prepare for new and tighter greenhouse gas regulations ahead.”

Pacific Basin also holds purchase options, exercisable between 2026 and 2031, on all 15 of its long-term chartered vessels, 12 of which are already trading in the firm’s fleet, with three newbuildings to be delivered in the second half of 2026 and 2027.

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