Analysts have backed Oslo-listed 2020 Bulkers as a cash-generator in any kind of market.
The operator of seven newcastlemaxes revealed average time charter equivalent (TCE) earnings of $16,700 per day for May.
The last two vessels trading on index-linked time charters in the spot market made $7,000 per day, including average daily scrubber benefits of $1,300 per day.
The four ships that had fixed time-charter coverage at that time earned $21,600 per day.
The Baltic Exchange's benchmark 5TC index of capesize TCE rates averaged $4,042 per day during May.
Cash-flow positive
"With a fleet-wide cash break-even around $14,000 per day, 2020 Bulkers is cash-flow positive in essentially any market, given the charter coverage," Fearnley Securities said.
"With capes shifting up a gear in recent weeks, 2020 Bulkers' spot vessels are already in positive cash flow territory."
But 2020 Bulkers has now switched the two spot ships to period charters in June.
The 5TC benchmark was assessed at $12,410 per day on Friday, having risen by a massive $1,734, which is the largest overnight leap in the assessment since late November.
Fearnley, an investment bank that has a buy rating on the company, said its index-linked charters are normally at 30% to 35% premium to the 5TC index, plus the scrubber benefit element.
Cleaves Securities said capesize spot rates had enjoyed "another stellar week", up 70% over the previous seven days, "spurred on by an increase in Brazilian iron ore exports with continued strong support from Australian exporters".
The financial outfit added: "The smaller segments posted smaller gains and could potentially benefit further from the strong sentiment amongst their larger cousins."
Cleaves has the dry bulk sector as its top pick in shipping.
Outlook strong
Against strong demand and falling inventories in China, the investment bank sees a strong short and medium-term outlook.
"Add a very low orderbook and an aversion towards ordering newbuilds, and we believe the upcoming expansionary cycle could be one of the longest on our records," Cleaves said.
2020 Bulkers now has all eight sisterships on period charters.
The dry bulk shipowner said the 208,000-dwt newbuildings Bulk Sao Paulo and Bulk Santos (both built 2020) had been secured by trader Glencore for between 35 and 37 months.
The former was handed over this month, with the latter also due to be delivered this month from New Times Shipbuilding in China.
