v3.26.3
Derivative Instruments and Fair Value Measurements
 9 Months Ended
Sep. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Instruments and Fair Value Measurements Derivative Instruments and Fair Value Measurements
Forward freight agreements

The Company assesses risk associated with fluctuating future freight rates and, when appropriate, hedges identified economic risk with appropriate derivative instruments, specifically forward freight agreements (FFAs). These economic hedges do not usually qualify for hedge accounting under ASC 815 and as such, the usage of such derivatives can lead to fluctuations in the Company’s reported results from operations on a period-to-period basis.

Fuel swap contracts

The Company continuously monitors the market volatility associated with bunker prices and the impact it may have on the Company's future cargo commitments, and seeks to reduce the risk of such volatility through a bunker hedging program. The Company enters into fuel swap contracts that are not designated for hedge accounting under ASC 815 and as such, the usage of such derivatives can lead to fluctuations in the Company’s reported results from operations on a period-to-period basis.

Interest rate cap

The Company’s objectives in using interest rate derivatives are to manage its exposure to interest rate movements. The Company uses an interest rate cap that provides for payments from the counterparty when the applicable interest rate exceeds the contractual strike rate. The interest rate cap is not designated as a hedging instrument for accounting purposes, and changes in its fair value are recognized in earnings.

The estimated fair values of the Company’s forward freight agreements and fuel swap contracts are based on market prices obtained from an independent third-party valuation specialist based on published indices. Such quotes represent the estimated amounts the Company would receive or pay to terminate the contracts. The interest rate caps contracts are valued using analysis obtained from independent third party valuation specialists based on market observable inputs, representing Level 2 assets.

The following table summarizes assets and liabilities measured at fair value on a recurring basis at September 30, 2026 and December 31, 2025:
Asset DerivativeLiability Derivative
Derivative instrumentsBalance Sheet Location09/30/202612/31/2025Balance Sheet Location09/30/202612/31/2025
Margin accounts (1)
Other current assets$4,178 $572 Other current liabilities$— $— 
Forward freight agreements (2)
Other current assets$— $177 Other current liabilities $385 $— 
Fuel swap contracts (2)
Other current assets$3,255 $— Other current liabilities$— $1,189 
Fuel swap contracts (2)
Other noncurrent assets$961 $— Other noncurrent liabilities$— $— 
Interest rate cap (2)
Other current assets$31 $347 Other current liabilities$— $— 
(1) The fair value measurements were all categorized within Level 1 of the fair value hierarchy.
(2) These fair value measurements were all categorized within Level 2 of the fair value hierarchy.

The three levels of the fair value hierarchy established by ASC 820, Fair Value Measurements and Disclosures, in order of priority are as follows:
 
Level 1 – Quoted prices in active markets for identical assets or liabilities. Our Level 1 fair value measurements include cash, money-market accounts and restricted cash accounts.
 
Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable.
 
Level 3 – Inputs that are unobservable (for example cash flow modeling inputs based on assumptions). 

The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these instruments. The carrying amounts of the Company’s floating rate debt approximate fair value as the applicable interest rates are variable and reflective of current market rates.

The fair value of the Company’s fixed-rate long-term debt is estimated using Level 2 inputs, based on market interest rates for similar instruments with comparable terms and credit characteristics.

At September 30, 2026 and December 31, 2025, The aggregate carrying values and estimated fair values of the Company’s fixed-rate secured debt, financing obligations and finance leases were as follows:

September 30, 2026December 31, 2025
Carrying valuesEstimated fair valuesCarrying valuesEstimated fair values
Secured debt$52,373 $51,656 $59,739 $57,570 
Financing obligations$46,777 $46,557 $51,911 $50,787 
Finance lease$8,700 $8,605 $9,200 $9,000 

The following tables present the realized and unrealized gains and losses on the Company’s derivative instruments recognized in the consolidated statements of operations for the three and nine months ended September 30, 2026 and 2025. Both realized and unrealized gains and losses are included in charter hire expenses for forward freight agreements, voyage expenses for fuel swap contracts, and interest expense for interest rate caps.
The following table presents the effect of our derivative financial instruments on the consolidated statements of operations for the three and nine months ended September 30, 2026 and 2025:
Unrealized gain (loss) on derivative instruments
Three Months Ended Nine Months Ended
Derivative instruments09/30/20269/30/202509/30/20269/30/2025
Forward freight agreements$(556)$1,274 $(561)$955 
Fuel swap contracts5,259 (241)$5,404 (190)
Interest rate cap(88)(367)$(316)(1,217)
Total gain (loss)$4,616 $666 $4,526 $(452)

The following table presents the realized gain (loss) on our derivative financial instruments for the three and nine months ended September 30, 2026 and 2025.
Realized gain (loss) on derivative instruments
Three Months Ended Nine Months Ended
Derivative instruments09/30/20269/30/202509/30/20269/30/2025
Forward freight agreements$(444)$(77)$(1,192)$(735)
Fuel swap contracts6,201 (210)$17,073 (3)
Interest rate cap82 362 $373 1,116 
Total gain$5,839 $74 $16,254 $378