Oslo-listed 2020 Bulkers has revealed a steep drop in earnings as market factors moved against it. The Tor Olav Troim-backed newcastlemax company said net profit in the third quarter was $7.3m, down from $21.6m a year ago. The owner experienced an “unseasonal weak market”, it added.

2020 Bulkers blamed the unwinding of congestion and a reduction in fleet inefficiencies. This effectively added vessel supply to the global fleet, the owner said.

The company also cited “lagging” Brazilian export volumes, which were down 2.4% year-on-year. But total capesize tonne-miles are up 1.3% year-on-year so far in 2022.

Revenue dropped to $18.4m, compared to $31.2m in 2021. The average time charter equivalent (TCE) earnings were $25,800 per day. In October, this figure rose to $26,700. The company declared a cash distribution of $0.10 for last month.

2020 Bulkers moved another of its newcastlemaxes on to a fixed-rate charter in October. The 208,000-dwt Bulk Sandefjord (built 2019) has been switched from an index-linked deal to one that guarantees $14,392 per day until the end of next March. The vessel will also earn a premium related to the fuel cost savings of $4,500 per day from its scrubber. The rate was above the average of the Baltic Exchange’s 5TC Capesize Index during September of $11,781 per day.

In September, the 208,000-dwt Bulk Sao Paulo (built 2020) was also switched from an index-linked contract previously. This means half the fleet of eight vessels are now on fixed-rate charters.