Newcastlemax owner 2020 Bulkers reported a fall in profits in the second quarter, driven in part by cuts in long-haul Brazilian iron ore exports. It reported profits of $12m, in line with analysts’ expectations, down from $17.1m in the same period last year. Revenues fell from $28.4m to $23.3m.

The Oslo-listed shipowner described the market as unseasonably weak during the third quarter so far, owing to lower Brazilian iron ore export volumes, less port congestion and fewer ships sitting in port. “Although global iron ore exports are relatively unchanged year to date, down 0.5%, tonne-miles have fallen compared to the same period last year, driven by a 3.6% drop in long-haul Brazilian export volumes. The capesize market has softened during the third quarter, as there has been a sharp reduction in fleet inefficiencies and port congestion.”

Average time charter equivalent rates for the three months stood at $32,300 per day, down from $39,500 for the same period a year earlier. So far in the third quarter, 2020 Bulkers has secured average rates of $30,300 per day. It has six vessels trading on index-linked time charters and two others on fixed time charters until the end of 2022 at $32,378 and $30,905, respectively.

The company said its prospects could improve if high gas prices lead to increased demand for seaborne coal. Its newcastlemax vessels do not typically carry coal but have competed with standard capesizes because of surging demand during the energy crisis. “Although China has ramped up domestic coal production over the last months, the coal trade is expected to remain robust going forward as the global energy crisis persists,” 2020 Bulkers said.

But it warned that a continued economic slowdown and heightened geopolitical tensions could hit the sector. The Russian invasion had “created challenges” in rotating crews that include a limited number of Ukrainian officers. The company moved its tax domicile from Bermuda to Norway this month. Lawyer Viggo Bang-Hansen has joined the board and two members stepped down.