Pangaea Logistics Solutions, Ltd. (PANL): Business Model Canvas [Dec-2025 Updated]

You're looking past the daily dry bulk noise to understand how Pangaea Logistics Solutions, Ltd. actually makes its money, and frankly, it's a masterclass in niche specialization. Forget just shipping; their model hinges on operating the world's largest high ice-class fleet to access difficult routes, which lets them consistently command a premium-they hit a 10% Time Charter Equivalent (TCE) premium over the general indices in Q3 2025. This integrated approach, combining specialized transport with their own port services, is key to managing the high fixed costs, like their net Vessel Operating Expenses of $5,634 per day. Dive below to see the full nine-block breakdown of the resources and partnerships that keep Pangaea Logistics Solutions, Ltd. earning that edge.

Pangaea Logistics Solutions, Ltd. (PANL) - Canvas Business Model: Key Partnerships

You're looking at how Pangaea Logistics Solutions, Ltd. (PANL) partners to keep its specialized fleet moving and its contracts fulfilled. The key here is leveraging external relationships for fleet flexibility and capital structure support, which directly impacts their ability to command premium rates.

Vessel Owners/Charterers for Flexible Charter-In Fleet Arbitrage

Pangaea Logistics Solutions, Ltd. relies on chartering in vessels to supplement its owned fleet, enabling the flexible arbitrage that supports its cargo-focused strategy. This is crucial for meeting dynamic customer demands without owning the entire required capacity.

In the second quarter of 2025, the owned fleet of 41 vessels was supplemented with an average of 29 chartered-in vessels to support cargo and Contract of Affreightment (COA) commitments. This chartering strategy allows for tactical fleet deployment. For the third quarter of 2025, the charter-in cost on a per-day basis stood at $15,387 per day, which was an increase of approximately 6% year-over-year. The overall impact on costs was managed well; total charter hire expenses decreased by 7% in Q3 2025, primarily because charter-in days decreased by 13%.

Shipyards and Financial Institutions for Fleet Renewal and Financing

Securing external financing is a core partnership activity for fleet renewal and maintaining a modern, efficient platform. Pangaea Logistics Solutions, Ltd. successfully executed significant financing activities in the third quarter of 2025 to support its fleet strategy.

The company received $18 million in cash from financing obligations during the three months ending September 30, 2025, related to the successful financings of two specific vessels. Specifically, the financing for the Strategic Spirit was $9.0 million payable over 7 years at an interest rate of SOFR plus 1.95%, and the financing for the Strategic Vision was $9.0 million payable over 5 years at SOFR+1.95%. These financings enhance balance sheet flexibility. As of September 30, 2025, total debt, including finance lease obligations, was $386.3 million. The company also continued fleet renewal by agreeing to sell the 2005-built Bulk Freedom for $9.6 million in Q3 2025, following the earlier sale of the Strategic Endeavor for $7.7 million in Q2/Q3 2025.

Here's a look at the recent financing and fleet transactions:

Port Authorities for Terminal and Stevedoring Licenses/Leases

Partnerships with port authorities are critical for Pangaea Logistics Solutions, Ltd.'s strategy to expand its integrated logistics offering beyond simple port-to-port transport. This involves securing access and operational rights for terminals.

The company is actively developing its terminal footprint in the U.S. Gulf region. In the second quarter of 2025, Pangaea Logistics Solutions, Ltd. started the installation of equipment at its Redwing Terminal in Tampa, Florida. Furthermore, new terminal operations were scheduled to start in the second half of 2025 across the Ports of Aransas (Texas), Lake Charles (Louisiana), and Pascagoula (Mississippi). The Tampa operations are on track for launch in early 2026.

Terminal operations activity in Q3 2025 included:

• Installation of equipment at Redwing Terminal (Tampa, Florida) started in Q2 2025.
• New terminal operations starting in the second half of 2025 in Aransas, Lake Charles, and Pascagoula.
• Tampa operations expected to launch in early 2026.

Key Industrial Customers Secured via Long-Term Contracts of Affreightment (COAs)

The stability provided by long-term COAs is a noted factor supporting Pangaea Logistics Solutions, Ltd.'s profitability and premium rate realization, especially in niche markets like Arctic trade. These contracts lock in revenue streams and utilization.

The stability of long-term COAs was cited as a key support for the strong Adjusted EBITDA of $28.9 million in the third quarter of 2025. The company's Time Charter Equivalent (TCE) rates earned in Q3 2025 were $15,559 per day, which exceeded the average Baltic Panamax, Supramax, and Handysize indices by 10%. This premium performance is directly attributed to the specialized fleet and long-term COAs. For comparison, in Q2 2025, the TCE premium over the market indices was even higher at 17%.

Key performance indicators tied to customer contracts in Q3 2025:

The 10% TCE premium over market benchmarks in Q3 2025 demonstrates the value derived from committed customer partnerships.

Pangaea Logistics Solutions, Ltd. (PANL) - Canvas Business Model: Key Activities

Operating the world's largest high ice-class dry bulk fleet

Pangaea Logistics Solutions, Ltd. maintains an owned fleet of 40 vessels as of September 30, 2025. This owned capacity is supplemented by an average of 24 chartered-in vessels to meet commitments. Total shipping days for the three months ended September 30, 2025, increased 22% year-over-year, reaching 5,872 days. For the second quarter ended June 30, 2025, total shipping days were 6,222 days, a 51% increase year-over-year.

The operational performance is quantified by Time Charter Equivalent (TCE) rates, which for the third quarter of 2025 were $15,559 per day. This rate represented a premium of approximately 10% over the average published market rates for Panamax, Supramax, and Handysize vessels during that period. The company has a forward booking target for the fourth quarter of 2025 of 4,210 shipping days at an average TCE of $17,107 per day.

Executing specialized logistics and cargo handling in niche routes (Arctic, U.S. Gulf)

The niche ice-class capabilities support premium TCE rates, particularly during the peak of the Arctic trade season. The company services a broad base of industrial customers requiring transportation for cargoes including grains, coal, iron ore, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite and limestone. The total shipping days increased 22% in Q3 2025, supported by robust demand across key Arctic trade routes.

Expanding port and terminal operations (e.g., new operations in Aransas, TX, and Pascagoula, MS)

Pangaea Logistics Solutions, Ltd. is actively expanding its integrated service platform combining shipping with terminal, stevedoring, and port services.

• Operations have commenced at the Port of Pascagoula, Mississippi.
• Activities are underway at the Port of Aransas, Texas.
• New activities were also started at Lake Charles, Louisiana.
• Expansion at the Port of Tampa, Florida remains on track for early 2026.

Strategic fleet management, including asset sales (e.g., Strategic Endeavor for $7.7 million)

The company continues its disciplined fleet renewal strategy, selectively divesting older assets.

• Completed the sale of the 2010-built Strategic Endeavor for $7.7 million in July 2025.
• Entered into an agreement in October 2025 to sell the 2005-built Bulk Freedom for $9.6 million, expected to generate a gain of approximately $2.7 million.
• Purchased the remaining 49% equity ownership of Seamar Management, the technical management subsidiary, for $2.7 million on July 31, 2025.
• Secured financing for the Strategic Spirit for $9.0 million and the Strategic Vision for $9.0 million in Q3 2025.

As of September 30, 2025, Pangaea Logistics Solutions, Ltd. had $94.0 million in unrestricted cash and cash equivalents, with total debt, including finance lease obligations, at $386.3 million.

Pangaea Logistics Solutions, Ltd. (PANL) - Canvas Business Model: Key Resources

You're looking at the core assets that power Pangaea Logistics Solutions, Ltd.'s specialized dry bulk logistics model. These aren't just ships; it's the combination of specialized hardware, proprietary know-how, and physical infrastructure that lets them command premium rates.

The owned fleet forms the backbone. While the fleet stood at 41 vessels following the Strategic Shipping Inc. (SSI) merger completion at the end of 2024, the company has been actively managing this asset base through selective sales in 2025. For instance, the sale of the 2010-built Strategic Endeavor closed in July 2025 for $7.7 million, and an agreement was made in October 2025 to sell the 2005-built Bulk Freedom for $9.6 million. This fleet renewal strategy aims to maximize Time Charter Equivalent (TCE) rates and meet evolving regulatory needs.

The proprietary element is critical here. Pangaea Logistics Solutions, Ltd. operates what is described as the largest high ice class dry bulk fleet of Panamax and post-Panamax vessels globally. This specialization supports robust utilization, as seen in the 22% year-over-year increase in total shipping days to 5,872 days in Q3 2025. This niche focus helped drive Q3 2025 TCE rates to an average of $15,559 per day, which exceeded the benchmark Baltic Panamax, Supramax, and Handysize indices by 10%.

The integrated port and terminal operations capabilities are expanding the service offering beyond pure shipping. The company opened new terminal servicing operations in Texas and Louisiana in 2024, and in Q3 2025, advanced terminal operations at Aransas, Pascagoula, and Lake Charles, while Tampa operations remain on track for the first half of 2026. This physical footprint supports the logistics model, which generated an Adjusted EBITDA of $28.9 million in the third quarter of 2025.

The full control over technical management is a recent, significant addition. Pangaea Logistics Solutions, Ltd. completed the purchase of the remaining 49% equity ownership in Seamar Management S.A. in Q3 2025 for a cash consideration of $2.7 million, finalized on July 31, 2025. This move consolidates control over the technical operations platform in Athens, aligning operational performance more closely with the commercial strategy.

Here's a snapshot of the operational scale and financial backing supporting these key resources as of the end of Q3 2025:

The operational leverage derived from this asset base is clear when you look at the performance metrics. The company's ability to secure premium TCE rates, even with a slight dip in Q3 2025 compared to Q2 2025, shows the value of the specialized fleet and COA book.

You can see the utilization of the fleet and logistics platform in the Q3 2025 figures:

• Total Shipping Days (Q3 2025): 5,872 days
• Year-over-Year Increase in Shipping Days: 22%
• Average TCE Rate (Q3 2025): $15,559 per day
• TCE Premium over Indices (Q3 2025): 10%
• Adjusted EBITDA (Q3 2025): $28.9 million

The financing for two vessels, the Strategic Spirit and Strategic Vision, totaled $18 million, closed in July and September 2025, respectively. This cash inflow bolsters the liquidity supporting these key physical assets.

Pangaea Logistics Solutions, Ltd. (PANL) - Canvas Business Model: Value Propositions

You're looking at what Pangaea Logistics Solutions, Ltd. (PANL) actually offers customers that makes them choose PANL over a standard carrier. It's not just moving boxes from A to B; it's about specialized access and integrated service.

End-to-end specialized logistics, not just simple shipping

Pangaea Logistics Solutions, Ltd. offers an integrated service platform. This platform combines specialized shipping with terminal stevedoring and port services. This combination deepens customer relationships, which is a key differentiator from simple spot-market shipping. The growth in shipping days, which hit 5,872 days in the third quarter of 2025 (a 22% year-over-year increase), reflects this expanded capability, supported by the integration of the fifteen handy-sized vessels acquired in late 2024.

Access to difficult, niche trade routes like the Arctic season

The company's niche ice-class fleet is central here. The third quarter is typically the high water mark for the year because of the Arctic trade season activity. This specialized capability allows Pangaea Logistics Solutions, Ltd. to secure business others can't touch. Management noted that growth in Q3 2025 was supported by solid Arctic trade activity and robust utilization across this niche fleet.

Consistent Time Charter Equivalent (TCE) premium over Baltic indices (10% in Q3 2025)

This is where the specialized fleet and strategy translate directly to the bottom line. For the three months ended September 30, 2025, Pangaea Logistics Solutions, Ltd.'s average Time Charter Equivalent (TCE) rate was $15,559 per day. This rate delivered a premium of approximately 10% over the average published market rates for Panamax, Supramax, and Handysize vessels for that period. This outperformance fueled an Adjusted EBITDA of $28.9 million in Q3 2025, up 20.3% year-over-year, on total revenue of $168.7 million.

Here's a quick look at the Q3 2025 rate performance:

Reliable, diversified dry bulk transportation for minor bulks

Reliability comes from the long-term contracts of affreightment (COAs) and the cargo-focused strategy. This approach provides stability even when the broader market is volatile. The value proposition is built on this stability, which is supported by:

• Long-term Contracts of Affreightment (COAs) stability.
• Robust utilization across the specialized fleet.
• Expansion into terminal and port services.
• Acquisition of fifteen handy-sized vessels for diversification.

The company held $94.0 million in unrestricted cash as of September 30, 2025, which helps ensure the reliability of service commitments.

Pangaea Logistics Solutions, Ltd. (PANL) - Canvas Business Model: Customer Relationships

You're looking at how Pangaea Logistics Solutions, Ltd. locks in its customer base. It's not about quick, one-off jobs; it's about deep integration, primarily through their Contracts of Affreightment (COAs).

Deep, long-term relationships through Contracts of Affreightment (COAs)

These COAs are the bedrock, giving Pangaea Logistics Solutions, Ltd. a revenue buffer against the spot market swings. This long-term commitment allows them to consistently charge a premium for their service reliability. For instance, in the second quarter ended June 30, 2025, the average Time Charter Equivalent (TCE) rate earned was $12,108 per day, which beat the benchmark average Baltic Panamax, Supramax, and Handysize indices by 17%. Even as market rates softened, this premium held up. By the third quarter ended September 30, 2025, the TCE rate was $15,559 per day, still exceeding the relevant indices by 10%. To be fair, the premium was even higher earlier in the year; in Q1 2025, the TCE premium over market rates was approximately 33%. As of early 2025, roughly 30% of the fleet was already under these long-term contracts, with plans to increase that commitment in Q3.

Dedicated logistics department function for select industrial clients

Pangaea Logistics Solutions, Ltd. acts as an extension of its industrial customers' own logistics departments. They service a broad base of clients who need reliable movement of specific drybulk commodities. This isn't general freight; it's specialized supply chain work. The types of cargo they manage include grains, coal, iron ore, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone. The scale to support these commitments is significant; as of June 30, 2025, the owned fleet stood at 41 vessels. This owned fleet was supplemented by an average of 29 chartered-in vessels during Q2 2025 just to meet those existing cargo and COA commitments.

Direct sales and operational engagement to manage complex cargo needs

The sales approach is inherently operational because the cargo needs are complex. You can't just quote a price and walk away; you have to manage the entire chain. This involves undertaking a comprehensive set of services and activities for the customer. The company's total shipping days increased 51% year-over-year in Q2 2025, partly due to the acquisition of fifteen handy-sized vessels, which provided the necessary capacity to meet growing demand and complex logistics requirements.

• Cargo loading management.
• Cargo discharge coordination.
• Vessel chartering and voyage planning.
• Vessel technical management.

High-touch service for specialized cargo and port services

A key differentiator for Pangaea Logistics Solutions, Ltd. is its focus on specialized shipping, particularly high ice-class vessels serving Arctic and sub-Arctic regions. This niche focus requires a high-touch service level to navigate challenging environments and port operations. Beyond just the sea leg, the service offering is vertically integrated. For example, in Q3 2025, the company reported total revenue of $168.7 million, reflecting a business that successfully integrates shipping with terminal and stevedoring services. This integration ensures end-to-end control, which is what those specialized cargo customers are paying the TCE premium for. The company's strategy is definitely cargo-focused.

Finance: draft 13-week cash view by Friday.

Pangaea Logistics Solutions, Ltd. (PANL) - Canvas Business Model: Channels

You're looking at how Pangaea Logistics Solutions, Ltd. gets its services-the shipping, the terminal handling, the whole logistics package-to the customer. It's a mix of direct deals and asset-backed services.

The direct sales effort focuses on securing long-term Contracts of Affreightment (COAs). These contracts provide a floor for profitability, which is key when the spot market gets choppy. For instance, in the third quarter of 2025, Pangaea Logistics Solutions' average Time Charter Equivalent (TCE) rate was $15,559 per day, which exceeded the benchmark average Baltic Panamax, Supramax, and Handysize indices by 10%, supported by these COAs.

For the remaining business, vessel brokers are used for spot market chartering and positioning the fleet. The company's operational scale, which grew significantly after acquiring fifteen handy-sized vessels in late 2024, allows for dynamic positioning.

The owned and operated port and terminal facilities are a major channel differentiator, moving the company beyond just being a ship operator. They perform stevedoring and terminal operations, complementing the fleet expansion.

Here is a look at the fleet size and chartering activity that supports these channels as of late 2025:

The expansion of port and terminal operations is a concrete channel development. You can see the progress on the ground:

• Terminal operations expansion at the Port of Tampa is on track to be complete in the second half of 2025.
• New terminal servicing operations were opened in Texas and Louisiana in 2024.
• New activities were advanced at Lake Charles, Aransas, and Pascagoula during the third quarter of 2025.

While the company uses its logistics expertise to service customers, specific metrics on digital platforms for fleet and cargo tracking aren't detailed in the latest earnings releases, but the focus on utilization and meeting cargo commitments implies their use.

Pangaea Logistics Solutions, Ltd. (PANL) - Canvas Business Model: Customer Segments

You're looking at the core clientele for Pangaea Logistics Solutions, Ltd. (PANL) as of late 2025, which is heavily concentrated in the industrial and resource sectors requiring specialized, often remote, dry bulk shipping and logistics. This isn't a one-size-fits-all operation; their customer base is defined by the specific, often difficult, nature of the cargo and the required route access.

The primary customer segments are industrial shippers moving key raw materials. Pangaea Logistics Solutions, Ltd. services a broad base of industrial customers who need the transportation of a wide variety of drybulk cargoes. This focus on niche, high-value commodities is key to their premium Time Charter Equivalent (TCE) rates, which in Q3 2025 exceeded the average Baltic indices by 10%.

Here's a look at the specific cargo types that define these customer segments, based on the materials Pangaea Logistics Solutions, Ltd. handles:

Mining and resource companies are a particularly important segment, as they often require access to specialized ports. Pangaea Logistics Solutions, Ltd.'s niche ice-class fleet supports robust demand across key Arctic trade routes, which was a significant driver of their strong Q3 2025 results. The company's owned fleet of 40 vessels operated at high efficiency during Q3 2025, supplemented by an average of 24 chartered-in vessels to fulfill these commitments.

Another distinct segment consists of agricultural shippers, primarily moving grains. The United States contributed 31.57% of Pangaea Logistics Solutions, Ltd.'s total revenue in the full year 2024, which aligns with the movement of grains from U.S. Gulf ports.

Finally, Pangaea Logistics Solutions, Ltd. targets customers seeking a more comprehensive, end-to-end service rather than just spot chartering. These clients look for integrated supply chain solutions that combine the shipping leg with shore-side support. The company addresses this by undertaking a comprehensive set of services and activities beyond just vessel movement. This integrated offering is being bolstered by strategic terminal investments:

• Advancing new terminal activities at Aransas, Pascagoula, and Lake Charles.
• Tampa operations are on track to launch in early 2026.
• The comprehensive services include cargo loading, cargo discharge, and port and terminal operations.

The total revenue for Pangaea Logistics Solutions, Ltd. in Q3 2025 was $168.7 million, showing the scale of the operations serving these segments.

Pangaea Logistics Solutions, Ltd. (PANL) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Pangaea Logistics Solutions, Ltd.'s operations as of late 2025. For a company running a specialized, asset-heavy fleet, the cost structure is heavily weighted toward fixed and semi-fixed operational costs, which you need to watch closely, especially when market rates fluctuate.

The Vessel Operating Expenses (VOE) are a major fixed cost component. Following the SSI fleet acquisition, these costs jumped, but the per-day efficiency improved somewhat. You saw that the Vessel Operating Expenses, net of technical management fees, settled at $5,634 per day (net) in Q3 2025. Still, the total VOE for the quarter hit $21,736,050.

Financing costs are also significant. The interest expense on debt has definitely risen due to new facilities supporting the fleet expansion. For Q3 2025, the overall interest expense was reported as $5.6 million, with the detailed filing showing it as $5,911,863 for the quarter. At the end of Q3 2025, total debt, including finance leases, stood at $386.3 million.

Variable costs ebb and flow with utilization and market rates. Voyage expenses, which cover things like fuel and port fees, were substantial at $73,207,858 in Q3 2025. Interestingly, on a per-day basis, voyage expenses actually decreased by 13% year-over-year, which is a positive sign of operational efficiency even with increased shipping days. Charter hire expenses, which cover chartered-in vessels, totaled $33,882,493 for the quarter. The cost for chartered-in days averaged $15,387 per day in Q3 2025.

Capital expenditure is focused on keeping the fleet modern and compliant. Pangaea Logistics Solutions, Ltd. is actively managing its asset base. They completed financing for the Strategic Spirit for $9 million and the Strategic Vision for $9 million during Q3 2025, intending to use that cash for working capital and strategic investments. On the divestiture side, they sold the Strategic Endeavor for $7.7 million in Q3 and agreed to sell the older Bulk Freedom for $9.6 million, underscoring the commitment to a modern, efficient platform.

Here's a quick look at the major expense categories for Q3 2025:

The cost structure is clearly dominated by the operational expenses required to keep the specialized fleet running and financed. You can see the leverage in the model when TCE rates are high, but the fixed nature of VOE and interest means operating leverage works both ways.

Key cost drivers you should track:

• Fuel Price Volatility: Directly impacts Voyage Expense.
• Debt Servicing Costs: Interest expense tied to SOFR plus a spread on new financings.
• Fleet Age/Efficiency: Dictates day-to-day VOE rates.
• Charter-In Strategy: Daily charter hire rates fluctuate with market conditions.

Finance needs to draft the 13-week cash view by Friday, focusing on how the Q4 charter bookings at $16,537 per day will offset these fixed commitments.

Pangaea Logistics Solutions, Ltd. (PANL) - Canvas Business Model: Revenue Streams

You're looking at how Pangaea Logistics Solutions, Ltd. (PANL) brings in the money based on their late 2025 operational snapshot. The revenue streams are clearly segmented across their integrated logistics platform.

The primary revenue components for the three months ended September 30, 2025, were:

Total revenue for the third quarter of 2025 was reported at $168.7 million. This performance was supported by a 22% year-over-year increase in total shipping days, reaching 5,872 days for the quarter.

The premium pricing power in the market is a key driver, especially for the voyage and time charter segments. Here are the key metrics reflecting that premium:

• Time Charter Equivalent (TCE) rates averaged $15,559 per day in Q3 2025.
• This TCE rate represented a premium of 10% over the average Baltic Panamax, Supramax, and Handysize indices.
• The average TCE rate in Q3 2024 was $16,324 per day.
• Q3 2025 TCE rates decreased 5% year-over-year.
• Charter-in cost on a per day basis was $15,387 in Q3 2025.

The integrated service platform, which combines specialized shipping with terminal stevedoring and port services, helps deepen customer relationships and supports these premium rates. The company also realized cash from asset sales during the period, such as the completion of the sale of the Strategic Endeavor for $7.7 million during the third quarter, and entering into a memorandum of agreement in October 2025 to sell the 2005-built Bulk Freedom for $9.6 million.

You can see the relationship between operational scale and revenue generation here:

The stability from long-term Contracts of Affreightment (COAs) is a foundational element supporting the revenue predictability.