panl-20210810
0001606909false00016069092021-08-102021-08-10

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________
 
FORM 8-K
CURRENT REPORT
 
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934 
 
Date of Report (Date of earliest event reported): August 10, 2021  
 
PANGAEA LOGISTICS SOLUTIONS LTD.
(Exact Name of Registrant as Specified in Charter)
 
Bermuda001-3679898-1205464
(State or Other Jurisdiction(Commission(IRS Employer
of Incorporation)File Number)Identification No.)
 
c/o Phoenix Bulk Carriers (US) LLC
109 Long Wharf, Newport, Rhode Island 02840
(Address of Principal Executive Offices) (Zip Code)
 
(401) 846-7790
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
 ☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 ☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 ☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 ☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e 4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of exchange on which registered
Common StockPANLNASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02Results of Operations and Financial Condition.

On August 10, 2021, Registrant issued a press release announcing financial results for the three months ended June 30, 2021. The press release is furnished as Exhibit 99.1, its Quarterly Investor Presentation is attached as Exhibit 99.2.
 
The information contained in, or incorporated into, this Current Report on Form 8-K is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities under that section, nor shall it be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in any such filing.

Item 9.01Financial Statements and Exhibits.
 
(d)Exhibits
ExhibitDescription
 

99.1    Press Release of Pangaea Logistics Solutions Ltd., dated August 10, 2021 Reporting Financial Results for the Three Months Ended June 30, 2021 (furnish pursuant to Item 2.02).

99.2    Investor Presentation of Pangaea Logistics Solutions Ltd. dated August 10, 2021.

104    Cover Page Interactive Data File ( embedded within Inline XBRL document)




SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Dated: August 10, 2021
 PANGAEA LOGISTICS SOLUTIONS LTD.
  
 By: /s/ Gianni Del Signore
  Name: Gianni Del Signore
Title: Chief Financial Officer
 
 



Pangaea Logistics Solutions Ltd. Reports Record Financial Results for the Quarter Ended June 30, 2021
NEWPORT, RI - August 10, 2021 - Pangaea Logistics Solutions Ltd. (“Pangaea” or the “Company”) (NASDAQ: PANL), a global provider of comprehensive maritime logistics solutions, announced today its results for the three months ended June 30, 2021.
2nd Quarter Highlights

•Net income attributable to Pangaea Logistics Solutions Ltd. was $19.2 million for the three months ended June 30, 2021, as compared to a $3.0 million for the same period of 2020.
◦Non-GAAP adjusted net income attributable to Pangaea Logistics Solutions Ltd. was $12.9 million, as compared to Non-GAAP adjusted net income of $3.7 million for the three months ended June 30, 2020.
•Diluted net income per share was $0.44 for the three months ended June 30, 2021 ,as compared to a net income per share of $0.07 for the same period of 2020.
•Pangaea's TCE rates were $21,053 for the three months ended June 30, 2021, as compared to $10,733 for the three months ended June 30, 2020.
•Adjusted EBITDA was $21.4 million for the three months ended June 30, 2021, as compared to $10.7 million for the same period of 2020.
•At the end of the quarter, Pangaea had $40.6 million in cash and cash equivalents.
•On August 9, 2021, the Company's Board of Directors declared a quarterly cash dividend of $0.035 per common share, to be paid on September 15, 2021, to all shareholders of record as of September 1, 2021.

Subsequent Business Update

On July 6, 2021, the Company, through its wholly owned subsidiary, Bulk Nordic Five Ltd., and the existing lender agreed to amend and restate the original Bareboat Charter dated October 27, 2016. The amended agreement extends the lease maturity date to April 2028 with a purchase obligation of $6.95 million. The Company also fixed the interest rate through maturity at 3.97%. The bareboat charter party is secured by a first preferred mortgage on the m/v Bulk Destiny, the assignment of earnings, insurances and requisite compensation of the entity, and by guarantees of its shareholders.

On July 12, 2021, the Company took delivery of the m/v Bulk Promise, a 2013 Shin Kurushima Toyohashi-built 78,228 dwt dry bulk vessel for $18.3 million. The vessel was financed under a secured term loan facility for $12.8 million payable in 24 equal quarterly installments and a final balloon payment of $4.5 million at maturity. Interest on the loan is floating at the three-month LIBOR plus 2.3%.

Ed Coll, Chief Executive Officer of Pangaea Logistics Solutions, commented:

“Our second quarter results were record-breaking. Market levels not seen in over a decade helped push our EBITDA above $21 million for the quarter, and our net income was $19.2 million, while EPS was $0.44 for the quarter. Our average TCE earned of $21,053 increased almost 100% compared to the second quarter of 2020, and was up approximately 27% from our TCE earned in the first quarter of 2021. Forward freight contracts, purchased to protect long cargo positions, added $6.1million of unrealized gains to net income for the quarter because FFA markets moved sharply upward and our accounting treatment requires the mark-to-market adjustment to be included in this quarter.

"We were also excited to take delivery of the first two of four Ice Class Newbuilding vessels during the second quarter. These timely deliveries expand our industry-leading ice class capabilities to meet our clients’ needs and will be fully deployed during the summer Arctic shipping season. We were also happy to report the successful delivery of three second-hand vessels as part of our fleet renewal and expansion, bringing our total owned vessels to 24 after the delivery of our final two Ice Class Newbuilding vessels later this year."

“We are encouraged by the steps we’ve taken to deploy our capital, focus on niches, and capitalize on an improving dry bulk market. Our TCE earnings continue to improve heading into the third quarter, and we remain optimistic about the fundamentals in the dry bulk market with a historically low order book and a stable demand outlook. We will continue to be opportunistic in expanding our platform in ways that add value for our customers and, in turn, enhance shareholder value.”

Results for the three months ended June 30, 2021 and 2020
Total revenue was $145.5 million for the three months ended June 30, 2021, compared with $70.4 million for the three months ended June 30, 2020. The 107% increase in revenues was mainly attributed to the increase in the average TCE rates achieved by our vessels during the second quarter of 2021 compared to the same period in 2020.
Time Charter Equivalent rate (TCE) was $21,053 per day for the three months ended June 30, 2021, compared to an average of $10,733 per day for the same period in 2020. The average supramax and panamax market index rates for the second quarter of 2021


were $24,185 per day. Pangaea’s earned TCE rates lagged the market index in the quarter due to the impact of timing of pricing and duration of performing voyages in a rapidly rising market as well as the impact of performance of voyages on fixed freight rates from our long term contracts of affreightment that are less than spot market rates.

Liquidity and Cash Flows
Cash, restricted cash and cash equivalents were $40.6 million as of June 30, 2021, compared with $48.4 million on December 31, 2020.
On June 30, 2021 and December 31, 2020, the Company had working capital of $46.6 million and $2.2 million, respectively. Net cash provided by operating activities during the six months ended June 30, 2021 was $19.5 million compared to net cash provided by operating activities of $6.9 million for the six months ended June 30, 2020.
Net cash used in investing activities during the six months ended June 30, 2021 was $108.7 million compared to net cash provided by investing activities of $5.8 million for the same period in 2020. During the six months ended June 30, 2021, the Company purchased four vessels for $105.4 million and paid $2.7 million as advances for the purchase of one additional vessel which was delivered on July 12, 2021. Additionally, the Company paid $0.3 million as an advance towards two newbuildings to be delivered in the fourth quarter of 2021.

Net cash provided by financing activities during the six months ended June 30, 2021 was $81.3 million compared to net cash used in financing activities of $16.2 million for the same period of 2020. During the six months ended June 30, 2021 and 2020, proceeds from long-term debt and finance leases were $143.4 million. During the six months ended June 30, 2021 and 2020, net cash used to repay long-term debt was $55.6 million and $6.6 million, respectively, net cash used to repay finance leases was $3.8 million and $9.1 million, respectively, and the Company made cash dividend payments of $2.4 million and $0.5 million, respectively.

Conference Call Details
The Company’s management team will host a conference call to discuss the Company’s financial results on August 11, 2021 at 8:00 a.m., Eastern Time (ET). To access the teleconference, please dial 877-876-9176 (domestic) or 785-424-1670 (international) approximately ten minutes before the teleconference's scheduled start time and reference Conference ID:PANLQ221.
A supplemental slide presentation will accompany this quarter’s conference call and can be found attached to the Current Report on Form 8-K that the Company filed concurrently with this press release. This document will be available at http://www.pangaeals.com/company-filings or at sec.gov.
A recording of the call will also be available for one week following the teleconference and will be accessible by calling 888-276-5315 (domestic) or 402-220-2332 (international).



Pangaea Logistics Solutions Ltd.
Consolidated Statements of Operations
(unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Revenues:
Voyage revenue$117,395,377 $66,857,166 $225,625,680 $153,381,057 
Charter revenue28,148,988 3,539,004 44,891,212 12,895,050 
Total revenue145,544,365 70,396,170 270,516,892 166,276,107 
Expenses:
Voyage expense46,112,779 31,757,910 93,951,636 79,553,822 
Charter hire expense62,604,014 15,203,731 116,239,356 47,529,178 
Vessel operating expense9,772,966 9,325,060 18,268,469 19,258,922 
General and administrative6,029,793 3,872,388 10,234,691 7,865,631 
Depreciation and amortization4,868,730 4,345,707 9,287,824 8,587,958 
Loss on impairment of vessels— 1,801,039 — 1,801,039 
Loss on sale of vessels— 297,475 — 219,485 
Total expenses129,388,282 66,603,310 247,981,976 164,816,035 
Income from operations16,156,083 3,792,860 22,534,916 1,460,072 
Other income (expense): 
Interest expense, net(2,621,110)(1,944,741)(4,577,916)(4,088,704)
Income attributable to Non-controlling interest recorded as long-term liability(179,080)(55,809)(449,745)(28,166)
Unrealized gain (loss) on derivative instruments, net6,303,776 1,404,317 8,326,148 (1,512,777)
Other (loss) income(82,496)98,635 250,962 695,191 
Total other income (expense), net3,421,090 (497,598)3,549,449 (4,934,456)
Net income (loss)19,577,173 3,295,262 26,084,365 (3,474,384)
Income attributable to non-controlling interests(349,898)(290,086)(1,002,919)(315,815)
Net income (loss) attributable to Pangaea Logistics Solutions Ltd.$19,227,275 $3,005,176 $25,081,446 $(3,790,199)
Earnings (loss) per common share:
Basic$0.44 $0.07 $0.57 $(0.09)
Diluted$0.43 $0.07 $0.56 $(0.09)
Weighted average shares used to compute earnings per common share:
Basic43,998,424 43,445,789 43,989,515 43,442,773 
Diluted44,688,602 43,445,789 44,731,058 43,442,773 



Pangaea Logistics Solutions Ltd.
Consolidated Balance Sheets

June 30, 2021December 31, 2020
(unaudited)
Assets
Current assets
Cash and cash equivalents$40,614,572 $46,897,216 
Restricted cash— 1,500,000 
Accounts receivable (net of allowance of $1,679,305 and $1,896,038 at June 30, 2021 and December 31, 2020, respectively)
30,761,336 29,152,153 
Bunker inventory23,183,558 15,966,247 
Advance hire, prepaid expenses and other current assets38,575,365 19,515,945 
Total current assets133,134,831 113,031,561 
Fixed assets, net388,565,554 276,741,751 
Investment in newbuildings in-process7,602,391 15,390,635 
Finance lease right of use assets, net46,129,067 45,240,198 
Total assets$575,431,843 $450,404,145 
Liabilities and stockholders' equity
Current liabilities
Accounts payable, accrued expenses and other current liabilities$44,688,612 $32,400,288 
Related party debt242,852 242,852 
Deferred revenue15,825,938 12,799,561 
Current portion of secured long-term debt14,312,255 57,382,674 
Current portion of finance lease liabilities11,323,580 6,978,192 
Dividend payable98,864 1,005,763 
Total current liabilities86,492,101 110,809,330 
Secured long-term debt, net100,919,806 47,761,898 
Finance lease liabilities, net116,132,843 47,266,104 
Long-term liabilities - other15,010,955 10,135,408 
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.0001 par value, 1,000,000 shares authorized and no shares issued or outstanding— — 
Common stock, $0.0001 par value, 100,000,000 shares authorized; 45,641,441 shares issued and outstanding at June 30, 2021; 45,447,751 shares issued and outstanding at December 31, 20204,564 4,545 
Additional paid-in capital160,817,940 159,581,415 
Retained earnings46,718,409 23,179,805 
Total Pangaea Logistics Solutions Ltd. equity207,540,913 182,765,765 
Non-controlling interests49,335,225 51,665,640 
Total stockholders' equity256,876,138 234,431,405 
Total liabilities and stockholders' equity$575,431,843 $450,404,145 

Pangaea Logistics Solutions, Ltd.
Consolidated Statements of Cash Flows

Six Months Ended June 30,
20212020
Operating activitiesUnauditedUnaudited
Net income (loss)$26,084,365 $(3,474,384)
Adjustments to reconcile net income to net cash provided by operations: 
Depreciation and amortization expense9,287,824 8,587,958 
Amortization of deferred financing costs477,263 346,985 
Amortization of prepaid rent57,628 61,136 
Unrealized (gain) loss on derivative instruments(8,326,148)1,512,777 
Income from equity method investee(250,962)(795,988)
Earnings attributable to non-controlling interest recorded as other long term liability449,745 28,166 
Provision (recovery) for doubtful accounts285,466 (185,331)
Loss on impairment of vessels— 1,801,039 
Loss on sale of vessel— 219,485 
Drydocking costs(5,551,513)(2,882,109)
Share-based compensation1,365,734 1,523,486 
Change in operating assets and liabilities:
Accounts receivable(1,894,649)10,296,790 
Bunker inventory(7,217,311)9,352,691 
Advance hire, prepaid expenses and other current assets(10,482,310)3,991,371 
Accounts payable, accrued expenses and other current liabilities12,222,358 (14,444,003)
Deferred revenue3,026,377 (9,033,002)
Net cash provided by operating activities19,533,867 6,907,067 
Investing activities  
Purchase of vessels and vessel improvements(108,540,199)(1,652,366)
Investment in newbuildings in-process— (33,445)
Purchase of fixed assets and equipment(112,196)(7,801)
Proceeds from sale of vessels— 8,099,667 
Purchase of derivative instrument— (628,000)
Net cash provided by (used in) investing activities(108,652,395)5,778,055 
Financing activities
Proceeds from long-term debt66,350,000 — 
Payments of financing fees and issuance costs(1,167,783)(149,118)
Payments of long-term debt(55,620,110)(6,568,134)
Proceeds from finance leases77,084,500 — 
Payments of finance lease obligations(3,824,259)(9,091,570)
Dividends paid to non-controlling interests(3,333,334)— 
Accrued common stock dividends paid(2,449,741)(536,461)
Cash paid for incentive compensation shares relinquished(129,190)(154,126)
Contributions from non-controlling interest recorded as long-term liability4,621,398 322,750 
Payments to non-controlling interest recorded as long-term liability(195,597)(70,487)
Net cash provided by (used in) financing activities81,335,884 (16,247,146)
Net decrease in cash, cash equivalents and restricted cash(7,782,644)(3,562,024)
Cash, cash equivalents and restricted cash at beginning of period48,397,216 53,055,091 
Cash, cash equivalents and restricted cash at end of period$40,614,572 $49,493,067 
Supplemental cash flow information
Cash and cash equivalents$40,614,572 $46,993,067 
Restricted cash— 2,500,000 
$40,614,572 $49,493,067 



Pangaea Logistics Solutions Ltd.
Reconciliation of Non-GAAP Measures
(unaudited)

Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Net Transportation and Service Revenue
Gross Profit$22,204,290 $9,781,061 $32,857,308 $11,409,632 
Add:
Vessel Depreciation and Amortization4,850,316 4,328,408 9,200,123 8,524,553 
Net transportation and service revenue$27,054,606 $14,109,469 $42,057,431 $19,934,185 
Adjusted EBITDA
Income from operations16,156,083 3,792,860 22,534,916 1,460,072 
Depreciation and amortization4,868,730 4,345,707 9,287,824 8,587,958 
Loss on impairment of vessels— 1,801,039 — 1,801,039 
Loss on sale of vessels— 297,475 — 219,485 
Share-based compensation418,182 420,717 1,365,734 1,523,486 
Adjusted EBITDA$21,442,995 $10,657,798 $33,188,474 $13,592,040 
Earnings Per Common Share
Net income (loss) attributable to Pangaea Logistics Solutions Ltd.$19,227,275 $3,005,176 $25,081,446 $(3,790,199)
Weighted average number of common shares outstanding - basic43,998,424 43,445,789 43,989,515 43,442,773 
Weighted average number of common shares outstanding - diluted44,688,602 43,445,789 44,731,058 43,442,773 
Earnings per common share - basic$0.44 $0.07 $0.57 $(0.09)
Earnings per common share - diluted$0.43 $0.07 $0.56 $(0.09)
Adjusted EPS
Net Income (loss) attributable to Pangaea Logistics Solutions Ltd.$19,227,275 $3,005,176 $25,081,446 $(3,790,199)
Non-GAAP
Add: loss on sale of vessels— 1,801,039 — 1,801,039 
Loss on impairment of vessels— 297,475 — 219,485 
Unrealized (gain) loss on derivative instruments(6,303,776)(1,404,317)(8,326,148)1,512,777 
Non-GAAP adjusted net income (loss) attributable to Pangaea Logistics Solutions Ltd.$12,923,499 $3,699,373 $16,755,298 $(256,898)
Weighted average number of common shares - basic43,998,424 43,445,789 43,989,515 43,442,773 
Weighted average number of common shares - diluted44,688,602 43,445,789 44,731,058 43,442,773 
Adjusted EPS - basic$0.29 $0.09 $0.38 $(0.01)
Adjusted EPS - diluted$0.29 $0.09 $0.37 $(0.01)





INFORMATION ABOUT NON-GAAP FINANCIAL MEASURES. As used herein, “GAAP” refers to accounting principles generally accepted in the United States of America. To supplement our consolidated financial statements prepared and presented in accordance with GAAP, this earnings release discusses non-GAAP financial measures, including non-GAAP net revenue and non-GAAP adjusted EBITDA. This is considered a non-GAAP financial measure as defined in Rule 101 of Regulation G promulgated by the Securities and Exchange Commission. Generally, a non-GAAP financial measure is a numerical measure of a company’s historical or future performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We use non-GAAP financial measures for internal financial and operational decision making purposes and as a means to evaluate period-to-period comparisons of the performance and results of operations of our core business. Our management believes that non-GAAP financial measures provide meaningful supplemental information regarding the performance of our core business by excluding charges that are not incurred in the normal course of business. Non-GAAP financial measures also facilitate management's internal planning and comparisons to our historical performance and liquidity. We believe certain non-GAAP financial measures are useful to investors as they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making and are used by our institutional investors and the analyst community to help them analyze the performance and operational results of our core business.

Gross Profit. Gross profit represents total revenue less net transportation and service revenue and less vessel depreciation and amortization.

Net transportation and service revenue. Net transportation and service revenue represents total revenue less the total direct costs of transportation and services, which includes charter hire, voyage and vessel operating expenses. Net transportation and service revenue is included because it is used by management and certain investors to measure performance by comparison to other logistic service providers. Net transportation and service revenue is not an item recognized by the generally accepted accounting principles in the United States of America, or U.S. GAAP, and should not be considered as an alternative to net income, operating income, or any other indicator of a company's operating performance required by U.S. GAAP. Pangaea’s definition of net transportation and service revenue used here may not be comparable to an operating measure used by other companies.

Adjusted EBITDA and adjusted EPS. Adjusted EBITDA represents income or loss from operations before depreciation, amortization and, when applicable, loss on sale and leaseback of vessel, loss on impairment of vessels, stock-based compensation and certain non-recurring charges. Earnings per share represents net income divided by the weighted average number of common shares outstanding. Adjusted earnings per share represents net income attributable to Pangaea Logistics Solutions Ltd. plus, when applicable, loss on sale of vessel, loss on sale and leaseback of vessel, loss on impairment of vessel, unrealized gains and losses on derivative instruments, and certain non-recurring charges, divided by the weighted average number of shares of common stock.

There are limitations related to the use of net revenue versus income from operations, adjusted EBITDA versus income from operations, and adjusted EPS versus EPS calculated in accordance with GAAP. In particular, Pangaea’s definition of adjusted EBITDA used here are not comparable to EBITDA.

The table set forth above provides a reconciliation of the non-GAAP financial measures presented during the period to the most directly comparable financial measures prepared in accordance with GAAP.

About Pangaea Logistics Solutions Ltd.

Pangaea Logistics Solutions Ltd. (NASDAQ: PANL) provides logistics services to a broad base of industrial customers who require the transportation of a wide variety of dry bulk cargoes, including grains, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone. The Company addresses the transportation needs of its customers with a comprehensive set of services and activities, including cargo loading, cargo discharge, vessel chartering, and voyage planning. Learn more at www.pangaeals.com.

Investor Relations Contacts
Gianni Del SignoreEmily Blum
Chief Financial OfficerProsek Partners
401-846-7790973-464-5240
[email protected][email protected]



Forward-Looking Statements

Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are based on our current expectations and beliefs and are subject to a number of risk factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The Company disclaims any obligation to publicly update or revise these statements whether as a result of new information, future events or otherwise, except as required by law. Such risks and uncertainties include, without limitation, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk shipping capacity, changes in our operating expenses, including bunker prices, dry-docking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors, as well as other risks that have been included in filings with the Securities and Exchange Commission, all of which are available at www.sec.gov.

SECOND QUARTER 2021  EARNINGS CONFERENCE CALL PRESENTATION 1

 
SAFE HARBOR This presentation includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth and future acquisitions. These statements are based on Pangaea’s and managements’ current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation of Pangaea’s business. These risks, uncertainties and contingencies include: business conditions; weather and natural disasters; changing interpretations of GAAP; outcomes of government reviews; inquiries and investigations and related litigation; continued compliance with government regulations; legislation or regulatory environments; requirements or changes adversely affecting the business in which Pangaea is engaged; fluctuations in customer demand; management of rapid growth; intensity of competition from other providers of logistics and shipping services; general economic conditions; geopolitical events and regulatory changes; and other factors set forth in Pangaea’s filings with the Securities and Exchange Commission and the filings of its predecessors. The information set forth herein should be read in light of such risks. Further, investors should keep in mind that certain of Pangaea’s financial results are unaudited and do not conform to SEC Regulation S-X and as a result such information may fluctuate materially depending on many factors. Accordingly, Pangaea’s financial results in any particular period may not be indicative of future results. Pangaea is not under any obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise. 2

 
BUSINESS HIGHLIGHTS •Adjusted EBITDAof $21.4 million •Net income of $19.2 million •$40.6 million cash, restricted cash and cash  equivalents Q2‐2021 Results •22 drybulk ships and one barge in owned and  controlled fleet at June 30, 2021 Fleet •Operating 52 vessels on average during Q2 2021 •5.9 million tons carried; 109 voyages performed  for 55 clients  Operations 1) Adjusted EBITDA is a non‐GAAP measure and represents income or loss from operations before depreciation and amortization, loss on sale and  leaseback of vessel, share‐based compensation, and when applicable, loss on impairment of vessels and certain non‐recurring items.  Consistent  Performance Working Fleet Extensive and varied  experience 3

 
Customer Focus: Long‐term, fixed contract employment and recurring business with new and longstanding customers Targeted Business: Specialty tonnage provides consistent returns through fluctuating market cycles. Rate Environment: The Baltic Dry Index average increased significantly in the second quarter. (1) Per reported indices DRIVERS OF PERFORMANCE 4 0 500 1000 1500 2000 2500 3000 3500 4000 Baltic Dry Index (1)

 
2nd Quarter Highlights  Net income attributable to Pangaea Logistics Solutions Ltd. was $19.2 million for the three months ended June 30, 2021, as compared to a $3.0  million for the same period of 2020. o Non‐GAAP adjusted net income attributable to Pangaea Logistics Solutions Ltd. was $12.9 million, as compared to adjusted net income  of $3.7 million for the three months ended June 30, 2020.  Diluted net income per share was $0.44 for the three months ended June 30, 2021 ,as compared to a net income per share of $0.07 for the  same period of 2020.  Pangaea's TCE rates were $21,053 for the three months ended June 30, 2021 as compared to $10,733 for the three months ended June 30,  2020. Adjusted EBITDA was $21.4 million for the three months ended June 30, 2021, as compared to $10.7 million for the same period of 2020.  At the end of the quarter, Pangaea had $40.6 million in cash and cash equivalents.  Subsequent Business Update  On July 6, 2021, the Company, through its wholly owned subsidiary, Bulk Nordic Five Ltd., and the existing lender agreed to amend and restate  the original Bareboat Charter dated October 27, 2016. The amended agreement extends the lease maturity date to April 2028 with a purchase  obligation of $6.95 million. The Company also fixed the interest rate through maturity at 3.97%. The bareboat charter party is secured by a first  preferred mortgage on the m/v Bulk Destiny, the assignment of earnings, insurances and requisite compensation of the entity, and by  guarantees of its shareholders.  On July 12, 2021, the Company took delivery of the m/v Bulk Promise, a 2013 Shin Kurushima Toyohashi‐built 78,228 dwt dry bulk vessel for  $18.3 million. The vessel was financed under a secured term loan facility for $12.8 million payable in 24 equal quarterly installments and a final  balloon payment of $4.5 million at maturity. Interest on the loan is floating at the three‐month LIBOR plus 2.30%.   On August 9, 2021, the Company's Board of Directors declared a quarterly cash dividend of $0.035 per common share, to be paid on September  15, 2021, to all shareholders of record as of September 1, 2021. FINANCIAL HIGHLIGHTS 5

 
(in thousands,may not foot due to rounding) 2021 2020 2021 2020 (unaudited) (unaudited) (unaudited) (unaudited) Revenues: Voyage revenue 117,395$           66,857$             225,626$           153,381$           Charter revenue 28,149               3,539                 44,891               12,895               Total revenue 145,544             70,396               270,517             166,276             Expenses:    Voyage expense 46,113               31,758               93,952               79,554                  Charter hire expense 62,604               15,204               116,239             47,529                  Vessel operating expenses 9,773                 9,325                 18,268               19,259                  General and administrative 6,030                 3,872                 10,235               7,866                    Depreciation and amortization 4,869                 4,346                 9,288                 8,588                 Loss on impairment of vessels ‐                     1,801                 ‐                     1,801                 Loss on sale of vessels ‐                     297                    ‐                     219                    Total expenses 129,388             66,603               247,982             164,816             Income from operations 16,156               3,793                 22,535               1,460                 Total other income (expense), net 3,421                 (498)                   3,549                 (4,934)                Net income (loss) 19,577               3,295                 26,084               (3,474)                Income attributable to noncontrolling interests (350)                   (290)                   (1,003)                (316)                   Net income (loss) attributable to Pangaea Logistics Solutions Ltd. 19,227$             3,005$               25,081$             (3,790)$              Adjusted EBITDA (1) 21,443$             10,658$             33,188$             13,592$             Six months ended June 30Three months ended June 30, 1) Adjusted EBITDA is a non‐GAAP measure and represents income or loss from operations before depreciation and amortization, loss on sale and leaseback of  vessel, share‐based compensation, and when applicable, loss on impairment of vessels and certain non‐recurring items.  SELECTED INCOME STATEMENT DATA 6

 
SELECTED BALANCE SHEET & CASH FLOW DATA 7 The amounts in the table above have been calculated based on unrounded numbers. Accordingly, certain amounts may not sum due to the effect of rounding.  (in thousands) June 30, 2021 December 31, 2020  Current Assets     Cash and cash equivalents 40,615$                                        46,897$                            Restricted cash ‐                                                 1,500                                    Accounts receivable, net 30,761                                          29,152                                 Other current assets 61,759                                          35,482                              Total current assets 133,135                                        113,032                           Fixed assets, including finance lease right of use assets, net 434,695                                        321,982                           Investment in newbuildings in‐process 7,602                                             15,391                             Total assets 575,432$                                      450,404$                         Current liabilities Accounts payable, accrued expenses and other current liabilities 44,689$                                        32,400$                           Related party debt 243                                                243                                   Current portion long‐term debt and finance lease liabilities 25,636                                          64,361                             Other current liabilities 15,925                                          13,805                             Total current liabilties 86,492                                          110,809                           Secured long‐term debt and finance lease liabilities, net 217,053                                        95,028                             Other long‐term liabilities 15,011                                          10,135                             Total Pangaea Logistics Solutions Ltd. equity 207,541                                        182,766                           Non‐controlling interests 49,335                                          51,666                             Total stockholders' equity 256,876                                        234,431                           Total liabilities and stockholders' equity 575,432$                                      450,404$                         Cash flows for the years ended: June 30, 2021 June 30, 2020 Net cash provided by operating activities 19,534$ 6,907$ Net cash (used in) provided by investing activities (108,652)$ 5,778$ Net cash provided by (used in) financing activities 81,336$ (16,247)$

 
TOTAL SHIPPING DAYS 8 Capital Efficiency: Leveraged owned fleet by chartering‐in market vessels Flexibility: Short‐term charters allow us to react quickly and take advantage of arbitrage opportunities 1,886  1,875  1,573  1,623  1,566  1,461  1,372  1,615  2,750  3,365  3,003  1,977  3,168  3,406  3,296  3,108   ‐  1,000  2,000  3,000  4,000  5,000  6,000 Q3‐19 Q4‐19 Q1‐20 Q2‐20 Q3‐20 Q4 ‐20 Q1‐21 Q2‐21 D ay s Owned Days Charter‐in Days

 
PANGAEA TCE v. AVERAGE MARKET TCE 9 **Average of the published Panamax and Supramax index net of commission $15,915  $15,172  $10,508  $10,733  $13,316  $14,640  $16,524  $21,053  $13,728  $10,819  $5,920  $5,548  $10,286  $10,326  $16,261  $24,185   $‐  $5,000  $10,000  $15,000  $20,000  $25,000  $30,000 Q3‐2019 Q4‐2019 Q1‐2020 Q2‐2020 Q3‐2020 Q4‐2020 Q1‐2021 Q2‐2021 PANGAEA AVG TCE V. MARKET AVERAGE TCE Pangaea TCE Market TCE

 
1) Adjusted EBITDA is a non‐GAAP measure and represents operating earnings before interest expense, income taxes, depreciation and amortization, share‐based  compensation, loss on sale and leaseback of vessels and other non‐operating income and/or expense, if any.  2) TCE is defined as total revenues less voyage expenses divided by the number of shipping days, which is consistent with industry standards. TCE rate is a common  shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels  on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed in per‐day amounts while charter hire rates for vessels  on time charters generally are expressed in per‐day amounts. FINANCIAL PERFORMANCE Q3‐2019 THROUGH Q2‐2021 10  ‐  5,000  10,000  15,000  20,000  25,000 Q3‐19 Q4‐19 Q1‐20 Q2‐20 Q3‐20 Q4 ‐20 Q1‐21 Q2‐21 ADJUSTED EBITDA(1) (in thousands)  $‐  $5,000  $10,000  $15,000  $20,000  $25,000 Q3‐19 Q4‐19 Q1‐20 Q2‐20 Q3‐20 Q4 ‐20 Q1‐21 Q2‐21 TCE(2)

 
ADJUSTED EARNINGS PER COMMON SHARE 11 (1) Adjusted earnings per share represents net income attributable to Pangaea Logistics Solutions Ltd. plus, when applicable, loss on sale and leaseback of vessel,  loss on impairment of vessel, gains and losses on derivative instruments, and certain non‐recurring charges, divided by the weighted average number of shares of  common stock. Adjusted EPS total of $0.29 for Q2‐2021 0.18  0.09  0.03  0.09  0.20  0.10  (0.09) 0.09  0.19  0.14  0.09  0.29   (0.10)  (0.05)  ‐  0.05  0.10  0.15  0.20  0.25  0.30  0.35 Q3‐18 Q4‐18 Q1‐19 Q2‐19 Q3‐19 Q4‐19 Q1‐20 Q2‐20 Q3‐20 Q4 ‐20 Q1‐21 Q2‐21 Historical Adjusted EPS (1) $0.39 $0.30 $0.71

 
TCE OUTLOOK 12 * Q3 21 estimated TCE performance based on shipping days performed through August 9, 2021 $13,728  $13,835  $14,360  $12,029  $12,933  $15,915  $15,172  $10,508  $10,733  $13,316  $14,640  $16,524  $21,053  $27,100*  ‐  1,000  2,000  3,000  4,000  5,000  6,000  $‐  $5,000  $10,000  $15,000  $20,000  $25,000  $30,000  $35,000 Q2 ‐ 2018 Q3 ‐ 2018 Q4 ‐ 2018 Q1‐2019 Q2‐2019 Q3‐2019 Q4‐2019 Q1‐2020 Q2‐2020 Q3‐2020 Q4‐2020 Q1‐2021 Q2‐2021 Q3‐2021e Shipping Days Pangaea TCE