Connecticut-based Eagle Bulk Shipping is seeing its best time charter equivalent (TCE) rates in more than nine years with nearly all of its operating days booked in the current quarter. Eagle’s bullish start to 2021 comes after the owner reported a surprise profit of $0.01 per share for the fourth quarter of 2020 against consensus analyst expectations of a $0.17 loss. But even that earnings beat will take a back seat to what the Gary Vogel-led owner of supramax and ultramax bulkers is saying about its surprisingly strong first quarter, which is usually a period of weakness for dry bulk owners.

“We entered the first quarter…well positioned to take advantage of the rising market with the majority of our vessels operating in the Atlantic Basin,” Vogel said in Eagle’s earnings release. “As of today, we have fixed about 93% of our available days for the quarter at a net TCE of $15,085 per day, representing what will likely be the highest TCE the company has achieved in more than nine years.” Vogel credited the strong performance to the world’s recovery from Covid-19 and government stimulus packages, both stoking demand for dry commodities. “The freight market has been reflecting this trend, and the Baltic Supramax Index is currently trading at a 10-year high. While risks remain to the global recovery, we believe the positive growth trend will continue,” Vogel said.

He also cited an historically low orderbook that could underpin both rates and asset values. Dry bulk owners generally have experienced unusual strength in the first quarter, which is typically dampened by shutdowns connected to the new year in China. Travel restrictions related to Covid-19 have helped limit the disruption usually associated with the holiday period. Still, Eagle’s rates update will be viewed as particularly strong among peers, on top of a surprisingly positive close to 2020. Eagle’s fourth quarter result did include an $800,000 gain on derivative instruments, according to Jefferies equity analyst Randy Giveans. Without that, Eagle ran to a $0.07 loss, but even this is significantly stronger than the $0.26 loss expected by equity analysts.

Eagle is also coming off an active quarter in which it purchased seven secondhand vessels, bringing its fleet to 52. The purchases were previously reported by TradeWinds. They included three 2011-built supramaxes from Alterna Capital and four Scorpio Bulkers ultramaxes. For the first time in its history, Eagle was able to use its shares as partial payment for acquisitions, for all three of the Alterna vessels and one of the Scorpio units. Scorpio Bulkers has since been renamed Eneti. Eagle also sold four older vessels over the period, all built between 2001 and 2003.

Eagle’s net income for the fourth quarter, without adjusting for the derivatives gain, was $100,000, or $0.01 per share, against a loss of $11.2m, or $1.09 per share, in the corresponding period of 2019. Revenue increased to $75.2m from $71.5m, which Eagle attributed to more operating days resulting from the retrofitting of vessels with exhaust-gas scrubbers in the earlier period. Eagle could not avoid a loss of $35.1m, or $3.40 per share, for the full Covid-impacted year, worse than the $21.7m loss, or $2.13 per share, for 2019. Eagle’s shares closed up more than 1% to $31.20 in Thursday’s trading.