Glencore's ST Shipping & Transport has extended its time charter on one of 2020 Bulkers' newcastlemax bulk carriers.
The 208,000-dwt Bulk Shanghai (built 2019) will be employed for an additional six to eight months, commencing 4 October.
The bulker will earn a fixed gross rate of $18,000 per day during the extension period.
This is the same rate as the vessel was earning during the initial contract, which began when the ship was delivered last November.
Oslo-listed 2020 Bulkers said the ship will share the fuel savings generated from the scrubber fitted on board.
Magnus Halvorsen, chief executive of 2020 Bulkers Management, said the company was pleased to further develop its relationship with Glencore.
"The extended time charter for Bulk Shanghai secures cash flow through the first quarter of 2021 at a level above our average operating cash break-even which is estimated at approximately $14,000 per day for 2021," he said.
The Baltic Exchange's forward rate assessment for 180,000-dwt capesize bulkers for its five major benchmarks known as the 5TC stands at about $9,610 per day for the first quarter next year and nearly $11,900 per day during the second quarter.
2020 Bulkers has eight scrubber-fitted newcastlemax dry bulk vessels in operation, four of which are on period contracts with Glencore and the rest employed with Koch Industries' logistics arm.
