Dry CargoEurope

2020 Bulkers switches another newcastlemax to fixed-rate charter

Norway’s 2020 Bulkers converted another newcastlemax this week from an index-linked charter to Koch Shipping into a fixed-rate hire.

The Oslo-listed owner’s Bulk Shenzhen has been fixed at $32,378 per day from next month until the end of this year. The 2020-built bulker will continue to earn a premium related to the fuel cost savings from the scrubbers.

Following the fixed-rate conversions of the 2019-built Bulk Shanghai, earlier this week and now Bulk Shenzhen, the newcastlemax owner estimates the six vessels trading on index-linked charters, based on current scrubber economics, will need to earn $8,800 per vessel per day to cover its cash breakeven for 2022. Based on current scrubber economics, 2020 Bulkers further estimated that a Baltic Index rate of approximately $4,425 per day would generate rates of $8,800 per day for the vessels trading on index-linked charters.

“The average time charter rate of $31,640 for the conversions of the Bulk Shanghai and the Bulk Shenzhen time charters reflects an improvement of 16%, or $4,440 per day, relative to the similar conversions done for the Bulk Sao Paulo and Bulk Santos that were done last year on March 2,” the company said in Oslo Exchange filing on Friday. 2020 Bulkers made nearly $71m in profit last year, or $3.14 per diluted share, up from just over $11m in 2020.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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