Koch Shipping has extended its existing index-linked charters on four of 2020 Bulkers’ newcastlemaxes for at least about two years.
The 208,400-dwt Bulk Santiago, Bulk Sandefjord (both built 2019), Bulk Shenzhen and Bulk Sydney (both built 2020) will remain on charter to the shipping arm of commodities giant Koch Supply & Trading until the end of 2026 with options for a further 12-month extension.
The daily rate of hire was not disclosed, but 2020 Bulkers said it “reflects a significant premium to a standard capesize vessel” — typically around 40% over the Baltic Capesize Index for newcastlemaxes — plus an additional premium generated by fuel cost savings from the vessels’ scrubbers.
2020 Bulkers’ fleet on index-linked charters earned a gross time charter equivalent rate of $36,300 per day on average during October, compared with the Baltic Capesize Index average of $25,557 per day.
“We are very pleased with the long-term contract extensions for four of our vessels, which is a testament to our strong relationship with Koch Shipping, as well as the vessels’ high quality and performance,” said Magnus Halvorsen, chairman of 2020 Bulkers.
The Bulk Santiago and Bulk Shenzhen were previously due to complete their existing charters in February next year and Koch’s contract on the Bulk Sydney was due to expire by August next year. The Bulk Sandefjord was due to finish its charter to Koch by January 2025.
Koch acquired a 6.7% stake in 2020 Bulkers in May 2021 through its Spring Creek Capital investment vehicle.
Six of the shipowner’s eight newcastlemaxes are on charter to Koch. The other two are fixed to an unnamed European charterer.
