The biggest impact to dry bulk shipping has been the war in Ukraine, according to Gary Vogel. The chief executive of Eagle Bulk, which focuses on the supramax and ultramax segments, has seen new trading patterns emerge. A lack of cargo from the Black Sea, especially grains from Ukraine, is being offset by longer voyages. For example, grains from Brazil to North Africa are replacing cargoes from the Black Sea to the Mediterranean. Meanwhile, transportation of coal from Indonesia to Europe continues, displacing some coal from Indonesia to China, India, and Vietnam. “It is not business as usual,” Mr Vogel said in an interview from Copenhagen.

Eagle Bulk has also been involved in backhaul trades, steel cargoes moving from the Far East to Europe, at premiums to the index, with a 55-day trip concluded at more than $40,000 per day, it also concluded a one-year physical charter at $32,500 per day. Congestion in China because of pandemic-related lockdowns is also supporting spot rates, he said, although it is not as high as this time last year.

The US-based company is still moving “a significant amount” of commodities to China, with growth expected through infrastructure spend, which bodes well for the dry bulk market. “The rest of the year looks strong, notwithstanding geopolitical events,” said Mr Vogel, adding that this is reflected in the forward curve, with the third quarter of the year at above $30,000 per day, and the fourth quarter at around a healthy $26,000 range. “The small orderbook and lack of new supply also adds to the positivity.”

The company, which reported first-quarter net income of $53.1m, compared with $9.8m in the same period a year earlier, is looking to sell its last two aged vessels before their special surveys are due, one in the middle of this year, and the other in the first part of next year.

Mr Vogel is happy with the fleet profile since buying 29 ships during the past few years. “We’re in a really good position,” he said, with the focus on operating in the five to 15-year-old range of ships. “We’re now in execution mode, focusing on maximizing revenues through operations.” The company has embarked on energy efficiency improvements since 2016 in part through fleet renewal, turning over 55% of the fleet and reducing the age to 9.5 years with a 15% cut in emissions per deadweight tonne, and through investing in better voyage performance such as hull coatings, which has resulted in a 10% improvement in energy efficiency.

The company’s new credit facility stipulates a minimum $2m spend on sustainability initiatives, which the company exceeded in 2021, he said. In terms of future fuels, he said he did not think there was a clear contender yet, but it was encouraging to see the industry come together to find solutions. “Being a supramax owner involved with tramp shipping, prevents us being a first-mover, but we will act, when possible,” he said, adding that he will be attending the official launch of the Maersk Mc-Kinney Moller Center for Zero-Carbon Shipping, which will assess solutions on a well-to-wake basis. Eagle Bulk successfully completed use of biofuels for an Atlantic voyage which cut net emissions by 90%, it said in its sustainability report published last week. “Using biofuel this past year brings us a step closer, but it is too early to say which technology will be adopted for commercial use.”