Norway’s 2020 Bulkers has landed charter extensions with Koch Shipping for two newcastlemax ships.
Employment for the 2019-built Bulk Santiago and Bulk Seoul has been extended by 10-13 months, commencing February 1, 2022, in direct continuation of their current charters.
The vessels will earn an index-linked rate, reflecting a significant premium to the Baltic 5TC index. So far in the fourth quarter, the company reported it has achieved time charter equivalent earnings of around $65,500 per day. The Baltic 5TC capesize index has averaged $69,126 per day in the same period.
The time charters also include profit sharing of any economic benefit derived from operating the vessels’ scrubbers, as well as certain rights to convert the time charters to fixed rates on the basis of the prevailing FFA curve from time to time.
The Magnus Halvorsen-led firm owns a fleet of eight newcastlemax bulkers, of which six vessels are trading on fixed-time charters at an average of $47,400 per day, plus scrubber benefits. The company reported a net profit of $21.6m in the third quarter of 2021.
