Pangaea Logistics Solutions, Ltd. (NASDAQ:PANL) Q4 2022 Earnings Call Transcript

Mark Filanowski: Yes. For instance, Poe, we’re looking at a project right now to take cargo into a new port that we’re trying to develop a relationship with in the Gulf Coast. So the project comes with – it’s really based on a contract for carriage of commodity into that port. So if we can get a contract for 1 year or 2 years or 3 years for this commodity business, because we’re doing this stevedoring on the discharge port or the stevedoring on the low port, then that adds consistency to the whole business. We put together the contract, carry the goods along with the stevedoring. So we’re not dependent on market fluctuations so much. That’s why we think it’s more consistent.

Mads Petersen: And just one comment, Poe. We’re not looking to create something that is like that operate totally independent from each other, right? The broad offering actually depend on each other for the maximum milestone, right? Stevedoring alone, without any activity on our own ships sort of derived from that, that is not coming that will generate comparable returns to buying a bulk carrier, for instance, right? But the combination is really powerful and drives higher margin and much more meaningful relationships that you find, especially in the shipping market. It’s a way to operate and create a niche for yourself. It’s not different approach to it and now, you know, it’s not different from our Ice-Class business, for instance.

It’s the same idea, just a different way of getting to the same end result of a more sort of – of offering a more comprehensive service that is of higher value to the customer than just moving stuff from A to B and not really thinking about what happens before.

Poe Fratt: Great. Those comments are really helpful. Thank you.

Operator: Thank you. It appears that we have no further questions at this time. I will turn the program back over to Mark Filanowski for any additional or closing remarks.

Mark Filanowski: Once again, thank you for joining our call. Should you have any questions, please feel free to contact us at investors@pangaeals.com, and a member of our team will follow up with you. This concludes our call today. You may now disconnect.

Operator: That concludes today’s teleconference. Thank you for your participation. You may now disconnect.