Hong Kong-listed Pacific Basin Shipping is tweaking its fleet renewal strategy, scrapping near-term dual-fuel orders in favour of conventional tonnage while keeping optionality for greener ships later in the decade.

The dry bulk owner said it has terminated earlier agreements for four 64,000 dwt dual-fuel ultramax newbuildings and replaced them with contracts for four conventionally fuelled vessels at a total cost of $156.8m, or $39.2m each. The ships will be built in Japan by Nihon Shipyard with deliveries slated between 2028 and mid-2029.

The company has also secured an option to order two methanol dual-fuel ultramaxes for $91m in total, with delivery slots stretching into 2030–2031.

The shift reflects growing uncertainty around the timing and structure of global decarbonisation rules, particularly after the International Maritime Organization failed to finalise its net-zero framework last year.

Chief executive Martin Fruergaard said the move trims near-term capital exposure while keeping the company flexible as regulation evolves.

“Converting to conventional vessels is a financially prudent response to the current uncertainty around green fuel regulation,” he said, adding that modern, fuel-efficient designs remain central to the company’s strategy.

Alongside the ultramax reshuffle, Pacific Basin is also doubling down on the smaller end of the fleet. The owner has lifted its handysize newbuilding programme in China from four to six ships, placing two additional 40,000 dwt orders at Jiangmen Nanyang Ship Engineering for a combined $59.6m.

The vessels will share the same fuel-efficient, open-hatch design as the four units ordered in late 2025 and are due for delivery in the second half of 2028.