2020 Bulkers is benefiting from moving more of its newcastlemaxes on to variable rates in rising markets.

The Oslo-listed, Tor Olav Troim-backed shipowner said that last month it achieved average time charter equivalent earnings of $25,600 per day for its fleet of eight ships.

This was a 44% premium to the Baltic Exchange's 5TC capesize index and up from $24,400 in April.

The rise was mainly due to increasing rates for the five 208,000-dwt vessels trading on index-linked time charters, which earned $27,800 per day, up from $26,100 the month before.

The figures include average daily scrubber benefits of $4,400 per day, versus $4,100 in April.

The three bulkers on fixed rates banked $21,800 per day, including scrubber benefits, compared with $21,600 in the previous month.

The Baltic Exchange's 5TC capesize index averaged $17,773 during the month, climbing from $15,931 in April.

As a result of the improved numbers, the 2020 Bulkers board approved a cash distribution of $0.08 per share for May, up from $0.07 in April.

During February, the shipowner converted index-linked deals to fixed-rate contracts with Koch for the 208,000-dwt Bulk Shanghai and Bulk Seoul (both built 2019).

These will last until the end of September at $22,850 per day.

Until the end of March, 2020 Bulkers had seven vessels fixed at an average rate of $18,963.

Fearnley Securities said at the time the company had made a “strong” move to focus on fixed-rate deals in the first quarter.

But in the second quarter, four ships were due to move back to index-linked arrangements, which the investment bank saw as opportune with the Baltic index starting to climb again.