Shipowners optimistic for 3Q dry market

Dry Bulk shipowners Western Bulk and Eagle Bulk reported strong second quarter results, and expect dry bulk rates to climb further in the second half of the year.

The companies are mostly active in the Supramax market, and both recorded profits in the second quarter following losses a year earlier.

Eagle Bulk's chief executive, Gary Vogel, was also optimistic that rates would increase further.

"Our time charter equivalent (TCE) [earnings] have continued to climb, and as of today, we have covered approximately 75pc of our available days for the third quarter at a net TCE in excess of $28,000/d," he said. This compared with an average TCE of $21,580/d in the second quarter.

"Given both positive demand and historically low supply side fundamentals, we maintain an optimistic outlook on market developments going forward," he said.

Western Bulk also expects the dry bulk market to extend its strong momentum into the third quarter of 2021, as the China-Australia embargo, strong Pacific-Atlantic steel trades, severe port congestion and waiting time and surging container rates persist.

It highlighted China's ban on Australian coal imports as a catalyst for Supramax demand, with Chinese buyers were forced to use smaller vessels for coal import from Indonesian and Australian sellers shifting focus to buyers in more distant markets including India, the Middle East and even Europe.

Western Bulk's confidence in the market was a factor in it initiating the process of seeking a listing on Euronext Growth in the third quarter of 2021. It made a profit of $9mn in the first half of 2021, compared with a loss of $2.9mn a year earlier, and expects profit for full-year 2021 to reach $40mn-50mn.

Eagle Bulk recorded a profit of $19mn in the second quarter, compared with a loss of $24mn a year earlier.

By Natalia Gregoriou