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10.04.2026
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The conflict in the Middle East and the closure of the Strait of Hormuz have negatively impacted operations and weighed on results. Elevated premiums on physical bunkers versus financial swaps have increased fuel costs, while existing cargo and tonnage commitments involving the Persian Gulf are expected to continue affecting performance in the first half of 2026. Western Bulk is exposed to continued operational uncertainty on three vessels awaiting transit through the Strait of Hormuz.
During the quarter, the company also utilized the seasonally weaker market to position capacity for improved profitability in the second half of the year.
The dry bulk market performed better than initially expected in Q1 2026, supported by a particularly strong February. Strength was primarily driven by solid grain flows, with exports from both the U.S. and East Coast South America (ECSA) remaining firm and supporting demand in the Atlantic basin. Momentum softened towards the end of the quarter, with March weakening as geopolitical tensions escalated, contributing to higher oil prices, increased global uncertainty, and softer freight rates.
Looking ahead, the company expects that the positioning undertaken during the quarter, will support improved performance when the situation in the Strait of Hormuz has improved.
Western Bulk, press release
