Posted by Fabien _the efficient capital allocator > 2021-06-12 19:50 | Report Abuse

Conservatively, we should be looking at average charter rates of USD20,000. Though very likely Q4 would see even higher rates, the unleash of pent-up demand as more economies re-open coupled with supply chain disruptions.

Increments from higher charter rates will translate into pure profit as their costs are largely fixed.

Investors should not mislead by looking at the Baltic Dry Index alone, as it comprises various classes of dry bulk carriers with different supply demand dynamics. You are right to highlight the impact of Capsize (about 40% weight) to the overall index decline.