Pangaea Logistics Solutions (NASDAQ:PANL) reported higher profitability in the second quarter of 2026 as stronger dry bulk shipping markets, fleet positioning and charter-in activity lifted time charter equivalent, or TCE, rates above prevailing market benchmarks.
Chief Executive Officer Mads Petersen said the company benefited from stronger overall demand, particularly in Asia, and from the balanced deployment of its owned and chartered-in fleet. The company’s TCE rates rose 50% from the prior-year period and averaged 10% above the published market average for Panamax, Supramax and Handysize vessels, according to management.
Second-Quarter Financial Results
Chief Financial Officer Gianni Del Signore said second-quarter TCE rates were $18,153 per day, compared with an average published market rate of $16,502 per day for the relevant vessel classes. Adjusted EBITDA totaled $35 million, increasing by nearly $20 million year over year, driven by the increase in TCE rates.
- GAAP net income was $10.2 million, or $0.16 per diluted share.
- Adjusted net income was $16.9 million, or $0.26 per diluted share, excluding the impact of an unrealized loss on derivative instruments and other non-GAAP adjustments.
- Charter-hire expense increased 24% from the second quarter of 2025 as rates to charter vessels rose. Charter-in costs averaged approximately $16,816 per day.
- Vessel operating expenses, including technical management fees, were $6,247 per day through the second quarter, up 2% from the prior year.
- General and administrative expenses increased 25% to approximately $9 million, primarily reflecting higher incentive compensation and added headcount.
Del Signore said GAAP earnings included an unrealized loss on bunker fuel derivatives after fuel prices declined late in the quarter. He said those losses largely offset unrealized gains recorded during the first quarter, when fuel prices increased amid an escalation in the conflict with Iran. Management said the hedges are tied to the company’s expected bunker fuel requirements and physical consumption.
Terminal Expansion and Fleet Renewal
The company continued to expand its onshore logistics platform during the quarter, beginning operations at the Port of Tampa. Tampa joins recently launched operations at Port Aransas and Lake Charles, each operating under multiyear contracts that began within the past 12 months.
Terminal and stevedore revenue increased 11% year over year to about $4 million. Petersen said Pangaea continues to expect approximately $3 million in incremental EBITDA from the operations on a full-year basis. The terminal network provides recurring revenue and expands the company’s role in customers’ supply chains beyond ocean freight, management said.
Pangaea also completed the sale of the 2006-built Bulk Xaymaca for $9.6 million during the quarter. The transaction followed the late-2025 sale of the Bulk Freedom, also for $9.6 million. Petersen said the asset sales reflect the company’s approach of selling older vessels before upcoming drydockings while improving the efficiency and environmental profile of its fleet.
Management said vessel values remain firm and that it will continue to consider secondhand vessel acquisitions selectively, focusing on assets that meet its specifications and return requirements. Petersen said the company can also use chartered-in tonnage to supplement its fleet in the near term.
Market Positioning and Outlook
Petersen said the company increased its Pacific exposure earlier in the year after seeing favorable market momentum and opportunities for returns. He characterized the shift as opportunistic rather than a fundamental change in Pangaea’s deployment strategy.
“It’s a dynamic business, and we’ll go wherever we feel we get the best return,” Petersen said. He added that the Pacific appeared more disrupted by activity in the Strait of Hormuz than the Atlantic, creating an opportunity for the company.
Management said dry bulk commodity demand remained positive in the first half, supported by higher iron ore and grain trade as well as growth in minor bulk trades. Pangaea expects moderate fleet growth to be broadly offset by comparable growth in ton-mile demand, including from longer and disrupted trade routes.
For the third quarter, Pangaea had booked 4,873 shipping days at a TCE rate of $20,258 per day as of the call. Its Arctic summer trading season, when its high ice-class fleet is most active, generally peaks in the third quarter and tapers through the fourth quarter.
The company also had booked 2,200 charter-in days for the third quarter at approximately $17,537 per day.
Cash, Debt and Capital Returns
Strong operating cash flow and $9.7 million of proceeds from the Bulk Xaymaca sale increased unrestricted cash to $105 million at quarter-end. Total debt, including finance lease obligations, was approximately $350 million.
The current portion of long-term debt increased to $40 million, including a $24 million balloon payment that management expects to refinance in coming months. Del Signore said the payment is associated with Nordic Bulk Holding, the company’s joint venture with Glencore, and that Pangaea expects to evaluate refinancing with its partner.
Pangaea increased its quarterly dividend to $0.10 per share. Del Signore said the company intends to preserve financial flexibility while supporting terminal expansion, fleet renewal and shareholder returns.
About Pangaea Logistics Solutions (NASDAQ:PANL)
Pangaea Logistics Solutions Ltd. is a global transportation and logistics company that provides ocean transportation and integrated logistics services. The company operates a fleet of drybulk vessels, including Handysize, Supramax and Ultramax carriers, to transport commodities such as coal, grain, minerals, ores and steel products. In parallel, Pangaea offers asset-light logistics solutions spanning freight forwarding, supply chain management and project cargo services, enabling end-to-end transport for bulk and breakbulk shipments.
Founded in 2012 as a spin-off from an established maritime shipping group, Pangaea Logistics Solutions went public on the Nasdaq in 2013 under the ticker PANL.
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