Pacific Basin Shipping : Third Quarter 2021 Trading Update

Highest Average Monthly Freight Indices in 13 Years

Handysize Market Spot Rates

Supramax Market Spot Rates

US$/day net*
40,000
35,000
									11 October 2021
30,000										$30,830
25,000
20,000
15,000
10,000
5,000
0
Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec

BHSI 38,000 dwt (tonnage adjusted)

• Excludes 5% commission Source: Baltic Exchange

US$/day net*
40,000
									11 October 2021
35,000										$35,860
30,000
25,000
20,000
15,000
10,000
5,000
0
Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec

BSI 58,000 dwt

Pacific Basin	2

Our Strongest Quarterly TCE Performance Since 2008

Handysize Core Business TCE

US$/day net*
45,000
40,000
35,000
30,000				26,950	29,070*
25,000			3Q = 24,350		95%
					of
20,000					days
15,000
10,000
5,000
-
1Q21	2Q21	Jul	Aug	Sep	Oct

Indicative Core Fleet P&L Breakeven Level incl G&A for 1H21 = US$8,630

Supramax Core Business TCE

US$/day net*
45,000
				39,310	40,200*
40,000
		3Q = 36,270
35,000					94%
				of
30,000					days
25,000
20,000
15,000
10,000
5,000
-
1Q21	2Q21	Jul	Aug	Sep	Oct

Indicative Core Fleet P&L Breakeven Level incl G&A for 1H21 = US$10,170

Our results are driven by our larger core fleet with substantially fixed costs, which includes an increased proportion of Supramax vessels that benefit from larger upside in strong markets

Our monthly TCE rates continue to improve

• Increasing market freight rates and the benefit of progressively stronger fixtures in 3Q21 will appear mainly in our 4Q21 earnings
• Our current 4Q21 TCE cover rate is US$25,160 for Handysize and US$35,000 for Supramax
• With over 30% of our vessel days still uncovered in 4Q21, we have significant opportunity to add cargo fixtures to our book at high market spot rates

October TCE is indicative only as voyages are still in progress	Pacific Basin		3
Supramax cover excludes scrubber benefit, currently about US$800 per day
*Excludes 5% commission

Cover as at 11 October 2021

Relative Market Performance

Handysize Performance vs Index (BHSI)*

US$/Day net*	Under/Outperformance

6,000														Rolling 12 months
4,000
	2,580	1,970
2,000
					330
-
							(370)				(930)
(2,000)
									(3,060)			(2,950)
(4,000)
			1Q20		2Q20		3Q20		4Q20		1Q21		2Q21		3Q21
BHSI 38,000 dwt (tonnage adjusted)
*Excludes 5% commission

					Operating Activity Margin
US$/Day (net)
6,000											Under/Outperformance	5,430
										Rolling 12 months
4,000
			2,400	2,750
2,000
960			760
						260
-
					(230)

(2,000)

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21

3Q21

				Supramax Performance vs Index (BSI)*
US$/Day net*												Under/Outperformance
6,000			5,080
													Rolling 12 months
4,000				3,480										3,710
						1,780	2,290
2,000
-
(2,000)											(1,170)	(2,650)
(4,000)
		1Q20			2Q20		3Q20		4Q20		1Q21		2Q21		3Q21
BSI 58,000 dwt

Includes scrubber benefit *Excludes 5% commission

 Due to the sharp market rise and the 1-3 month lag between fixing and executing voyages, our relative performance has lagged the spot market for most of 2021

 Our Supramaxes have caught up and are again outperforming the BSI index

 Our Handysizes will need more time to catch up as the BHSI continues to rise more sharply than BSI and we have more lower-paying backhaul cover in our Handysize cargo book secured in earlier, weaker markets. Handysize performance improved significantly in September

 Our Operating Activity Margin has increased significantly partly due to our decision to take in tonnage (particularly Supramaxes)

early in the market recovery	4
Pacific Basin

Minor Bulk was a Key Demand Driver in the Third Quarter

	Minor Bulk +14% YTD			Grain + Soybean -2% YTD
Million tonnes annualised				Million tonnes annualised
2,100					700
2,000					650
1,900					600
1,800					550
1,700					500
1,600					450
1,500					400
1,400	2018	2019	2020	2021	350	2018	2019	2020	2021
1,300					300	Jan Feb Mar Apr May Jun	Jul Aug Sep Oct Nov Dec
	Jan Feb Mar Apr May Jun	Jul Aug Sep Oct Nov Dec

		Coal +9% YTD			Iron Ore +3% YTD
Million tonnes annualised				Million tonnes annualised
1,600					1,800
1,500					1,700
1,400					1,600
1,300					1,500
1,200					1,400
1,100	2018	2019	2020	2021	1,300
	2018	2019	2020	2021
1,000					1,200
	Jan Feb Mar Apr May Jun Jul	Aug Sep Oct Nov Dec	Jan Feb Mar Apr May Jun Jul	Aug Sep Oct Nov Dec
Note: Percentage changes are year-on-year comparisons				Pacific Basin	5

Source: Indicative data and material from Oceanbolt, all rights reserved Data is subject to revision