Q4 2024 Navios Maritime Partners LP Earnings Call
Thank you for joining us for Navios Maritime partners first quarter 2024 earnings conference call with US today from the company.
Sure women and CEO, Ms. Angela <unk>, Chief operating officer, Mr. Satish, Rishi, Chief Financial Officer, Mr attitude, Ronnie and Vice Chairman, Mr. Ted that's wrong.
Speaker Change: As a reminder, this conference call is being webcast to access the webcast. Please go to the investors section of Navios Partners' website at <unk>.
Speaker Change: Blue Ww adult Navios MLP com, you'll see the webcasting link in the middle of the page and a copy of the presentation referenced in todays earnings conference call will also be found there.
Speaker Change: Now I will review the Safe Harbor statement. This conference call could contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 about Navios partners.
Speaker Change: Forward looking statements are statements that are not historical facts.
Speaker Change: Such forward looking statements are based upon the current beliefs and expectations of Navios partners management and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward looking statement.
Speaker Change: Such risks are more fully discussed in Navios partners filings with the Securities and Exchange Commission.
Speaker Change: The information set forth herein should be understood in light of such risks Navios partners does not assume any obligation to update information contained in this conference call.
Speaker Change: The agenda for todays call is as follows first Ms. <unk> will offer opening remarks next Mr. This Apis will give an overview of Navios partners' segment data.
Speaker Change: Next Mr. Ronnie will give an overview of Navios partners financial results then Mr. Cheung will provide an industry overview and lastly, we'll open the call to take questions now.
Speaker Change: Now I turn the call over to Navios partners' chairwoman and CEO, Ms. Sandra Leaky Frankel Angie leaky.
Speaker Change: Good morning, and thank you all for joining us on today's call I am pleased with day jobs for the full year in the fourth quarter of 2024 for the full year, we reported revenue of one point $33 billion of which $332 $5 million related to the fourth quarter.
Speaker Change: We also reported net income of three.
Speaker Change: <unk> hundred $67 3 million and $94 $7 million for the full year and the fourth quarters respectively.
Speaker Change: Earnings per common unit were $11 at 98 cents for the 'twenty to 'twenty four.
Speaker Change: $3 11 for the fourth quarter.
Speaker Change: She is the pandemic, our mortgage or David primarily by geopolitical events of conflict in Ukraine, and the Middle East. We don't know how this event will be resolved. We also don't know the extent to which Nathan will be subject to continuing or even expanded sanctions in.
Speaker Change: And I view the resolution of the conflict in Ukraine, and the Middle East May involve significant Sanchez on oil producing nations materially impacting won't trade. In addition, the Trump administration has been vocal about each new dining scheme, but has not yet.
Speaker Change: I did a complete roadmap so we cannot fully understand it's inevitable impact on global trade.
Speaker Change: Please turn to slide six Navios partners is a leading publicly listed shipping company with a Honda 76 vessels. These vessels have an average age of nine eight years and indeed in three different statements and 16 asset classes.
Speaker Change: As you can see the vessel value is approximately equal in each sector.
Speaker Change: We entered 2024 with a contracted revenue of $3 $6 billion, and 302 out of $1 million of gas not bad.
Speaker Change: We also entered 2025 well positioned.
Speaker Change: 63% of our 2025 available days are fixed as a result, our breakeven is estimated at about $425 10 that opened index data.
Speaker Change: Our net LTV as of the end of the fourth quarter was calculated on 34, 8%, resulting from a contraction in volume mainly in the dry bulk sector.
Speaker Change: Please turn to slide seven I would like to focus on our return on capital program under our dividend program, we paid 20 cents dividends per unit annually.
Speaker Change: $6 $1 million in total for 'twenty 'twenty four in addition in 'twenty to 'twenty four we purchased 489955 common units for $25 million.
Speaker Change: And as a unit repurchase program.
Speaker Change: Including dividends, we dumped a total of $31.1 million in 2024.
Speaker Change: Through February seven 2025, we repurchased a total of 585.
Speaker Change: 412 common units for $29 $2 million retiring one 9% of the old age and then float.
Speaker Change: As you need the purchases were well below estimated at NAREIT, we effectively returned and know that at 1.8 dollars per unit of value to each unit called the through this in a week a creation.
Speaker Change: As of February seven 2025 was up 17.8.
Speaker Change: $8 million.
Speaker Change: Available under a unit repurchase program, the volume and timing of where the pressure will be shopped it to general market and business conditions working capital requirements and the other investment opportunities among other factors.
Speaker Change: Please turn to slide eight where we provide sales and branches update for the fourth quarter and 2025 year to date sales we generated 18.8.
Speaker Change: Millions of dollars gross sales proceeds from the sale of two dry bulk vessels with an average age of $18 seven yes.
Speaker Change: We acquired one vessel for an effective price of $25 $4 million by exercising an option on a charter in vessels.
Speaker Change: We also received the Liberty or four previously announced new building vessels three.
Speaker Change: <unk> container ships and one tanker vessels you can see the trend of the related charters on this slide.
Speaker Change: Contracted revenue update we continue to focus on building contracted revenue, which is now calculated that at about $3.6 billion. We added $79 million of contracted revenue as follows $59 4 million relating to tankers and 90.
Speaker Change: Pinpoint 6 million related to a container ship.
Speaker Change: Our operating cash flow potential remains strong for 2025 will have an estimated breakeven or four continent and $25 per open day next day with 37% of our fleet available days open or index.
Speaker Change: Please turn to slide nine.
Speaker Change: Where we focus on how we have it we are executing on our strategy. We have achieved a 23% decrease in net LTV is here in 2022.
Speaker Change: In terms of fleet in the U S and modernization.
Speaker Change: Have purchased 46, new buildings since the first quarter of 2021 of week 23 vessels have been delivered.
Speaker Change: We have also shown 33 vessels since the third quarter of 2022.
Speaker Change: We provide a view of the evolution of our fleet through selected metrics as you can see our fleet is the same size.
Speaker Change: As it toward the year end 2022.
Speaker Change: Our fleet age remains about the same we maximize energy efficiency by maintaining a fleet of youthful vessels with the latest technology. In addition, as you can see from vessels value the student value of our fleet has increased by about 74%.
Speaker Change: And since the end of 2022.
Speaker Change: I would also note that this still values do not give any course duration two or $3.6 billion contracted 11.
Speaker Change: We present at the bottom of this slide at.
Speaker Change: As the slide the average analyst estimate of the company's in a REIT that is unit for the period, starting fourth quarter, 2022, and ending fourth quarter 'twenty to 'twenty four Navios beta unit and they've increased by 32.2 dollars.
Speaker Change: 243.2 dollars.
Speaker Change: Increase of 29% over the two year opinions.
Mr. Stratos: I'll now turn the presentation over to Mr. Stratos <unk> navios.
Speaker Change: Navios partners, Chief operating Officer Stratos.
Speaker Change: Thank you Angeliki and good morning.
Speaker Change: Please turn to slide 10, which details our operating free cash flow potential for 2025.
Speaker Change: We fixed 63% of all of our available days at the net average grade of $26198 per day.
Speaker Change: Contracted revenue almost cabinets on total cash expenses for the year, leaving an estimated breakeven with $125 per open index data.
Speaker Change: We have 21018 remaining open or index linked days, but could provide substantial company.
Speaker Change: But what you can perform your own sensitivity analysis on the right side of this slide we provide over 56387 available days by vessel type.
Speaker Change: Please turn to slide 11.
Speaker Change: We are constantly reviewing or renewing your fleet elliptical maintain exact profile.
Speaker Change: We reduce our carbon footprint by modernizing our fleet benefiting from your technologies.
Speaker Change: Environmentally friendly features.
Speaker Change: In Q4, and so far in Q1, we took delivery of four vessels.
Speaker Change: <unk> 5600, Teu container ships, all chartered out for an average period of five three years at an average daily rate of $56818 1 million of glaucoma system, which have been chartered out for five years.
Speaker Change: $253.
Speaker Change: And our first 7700 Teu LNG dual fuel container ships, which are chartered out for 12 years at.
Speaker Change: At an average rate of $41753 per day.
Speaker Change: Following these deliveries we have 23 additional new building vessel delivery gauntlet.
Speaker Change: <unk> eight representing $1 6 billion of investments.
Speaker Change: And container ships, we have high vessel to be delivered with a total acquisition price of about <unk> six point.
Speaker Change: 6 billion.
Speaker Change: We have mitigated the risk with long term credit worthy partners expect to generate about half a billion in revenue over the six year average charter duration.
Speaker Change: In tankage would have 18 vessels to be delivered for a total price of approximately 1 billion.
Speaker Change: We chartered out 14 of these vessels put in evidence period of five years expected generate aggregate contracted revenue of about <unk> 7 billion.
Speaker Change: We have also been opportunistically, replacing all divisions in 2024, and 2025 to date, we shall delivered vessels with an average age of 17.8 years for about $202 million at the same time, we exercised purchase options on pipe.
Speaker Change: Our next bill Drybulk vessels with an average age of eight years for a total price of $442 million.
Speaker Change: Moving to slide 12, we continue to see good long term employment.
Speaker Change: In Q4, and 2025 year to date, we created about 79 million additional contracted delivery.
Speaker Change: Approximately $20 million is falling container ships and about $59 million from bankers.
Speaker Change: Our total contracted revenue amongst the $3 6 billion.
Speaker Change: One 4 billion relates to the tanker fleet 42 billion relates to dry bulk fleet and 2 billion relates to container ships.
Speaker Change: And extending through 2077 with a diverse group of quality Counterparties.
Eddie: I'll now pass the call gratitude CFO, who will take you through the financial highlights Eddie.
Eddie: Thank you Brad and good morning, all I will briefly review our unaudited financial results for the fourth quarter and year ended December 31st 2024 and.
Eddie: The financial information is included in the press release and is summarized in the slide presentation are available on the company's website.
Eddie: Moving to the earnings highlights on Slide 13, total revenue for the fourth quarter of 'twenty 'twenty four increase to $333 million compared to 327 million for the same period in 'twenty three.
Eddie: Due to higher fleet time charter equivalent rate and available days.
Eddie: Our fleet TCE rate for the fourth quarter of 'twenty 'twenty four increased by two 6% to 23205 per day compared to Q4 'twenty three in our available days increased by one 1% to 13671 days.
Eddie: In terms of sector performance, the TCE rate for our dry bulk fleet in our container fleet increased by approximately 1% to 17079 per day and 30623 per day, respectively.
Eddie: In contrast, the time charter rate for our tankers was approximately 3% lower at 26646 per day.
Eddie: EBITDA was adjusted as explained in the slide footnote <unk>.
Eddie: Excluding these amounts adjusted EBITDA for Q4, 'twenty four decreased by 45 million to $182 million compared to Q4 'twenty three.
Eddie: Please note that the 23 figures include the prepayment of charter hire received by our charterers of with $47 million relates to periods from 'twenty to 'twenty four onwards.
Eddie: Net income for Q4 24, it was $95 million.
Eddie: Total revenue for the full year 'twenty four increased by $27 million to $1 33 billion compared to 2023.
Eddie: The increase in revenue was mainly a result of higher fleet time to time charter equivalent rate despite slightly lower available days.
Eddie: Our 'twenty 'twenty four fleet TCE was 22924 per day.
Eddie: In terms of sector performance D C trade for our dry bulk fleet increased by 18% to 16959 per day compared to 2023.
Eddie: In contrast, TCE rates for our containers and tankers were approximately 10 and 5% lower respectively.
Eddie: For 'twenty 'twenty four TCE rates for our container stood at 30370 per day and four hours bankers are 27093 pending.
Eddie: Adjusted EBITDA for the year 'twenty 'twenty four decreased by $16 million to 732 million compared to last year.
Eddie: Excluding the 47 million prepayment mentioned earlier 'twenty 'twenty four EBITDA would have exceeded 2023 limits.
Eddie: Net income for 2024 stood at 367 million.
Eddie: Earnings per common unit for the fourth quarter and full year 2024 were $3 11, and 11 $98 respectively.
Eddie: Turning to slide 14, I will briefly discuss some key balance sheet data as of December 31st 2024, cash and cash equivalents, including restricted cash and time deposits in excess of three months by $312 million.
Eddie: During the year, we paid 282 million under our new building program net of debt. We concluded the sale of 10 basis for $190 million, adding about $128 million cash after debt repayment.
Eddie: Long term borrowings, including the current portion net of deferred fees.
Eddie: Please by 267 million to 2.1 billion, mainly as a result of the delivery of 12, new building vessels for which their respective deliveries talents who are paid with that.
Eddie: Net debt to book capitalization slightly increased to 34, 7%.
Eddie: Slide 15 highlights our debt profile, we continue to diversify our funding sources between bank debt and leasing structures, 28% of our debt has fixed interest rates at an average rate of five 5%.
Eddie: We also have mitigated part of the increased interest rate cost by reducing the average margin for the floating rate debt for the the water fleet to 2% I would like to note that the average margin for the floating rate debt for our new building program is one 5%.
Eddie: Our maturity profile is target with no significant balloons, you in any single year.
Eddie: In Q4 2020 for Navios partners entered into two new credit facilities for up to 120 million to refinance existing indebtedness of 11 vessels. In addition, we completed a 60 million sale and leaseback facility or one vessel.
Eddie: Finally recently Navios partners agreed to enter into an export credit agency backed facility for a total amount of up to $148 4 million in order to finance part of the acquisition cost of two new buildings 7900, Teu container ships currently under construction than myself.
Eddie: Mature state, yes, after the delivery date of each vessel and bears interest at Telfer up plus 125 basis points right.
Eddie: The facility remains subject to completion of definitive documentation is expected to close the first quarter of 2025.
Speaker Change: I now pass the call to Ted Petrone to take you through the industry section.
Arie: Arie, Please turn to slide 17.
Arie: On February 1st the U S and our traditional 10% tariffs on all existing duties for all products imported from China in February 4th Beijing announced additional tariffs of 10% to 15% on U S goods, including coal LNG crude oil agricultural machinery and large orders at this time. They know if tariffs are not expected to have a significant effect on global trade.
Arie: It is the combined U S. China tariffs equal approximately 90 million metric tons equal to only about 0.7% of global seaborne trade.
Arie: On February 1st U S announced 25% tariffs on Canada, and Mexico for all products imported from each country, except for energy and energy resources coming out of Canada. The tariffs on Canada, and Mexico were postponed one love after discussions between the leaders of each country situation is fluid and bears monitoring there's the potential for further.
Arie: Collation should be expected negotiations not be successful.
Arie: Please turn to slide 18 for a review of current trade disruptions.
Arie: Let's see entrants leading to the Suez Canal, a strategic Maritime Transit point continues to operate at restricted transit levels. In fact, the first week of February this year registered the lowest transit 173 vessels since November of 2023.
Arie: The disruptions have caused a rerouting of ships via the Cape of good hope increasing cost and distances in 'twenty 'twenty four total ton or Teu mile increases per segment were estimated to be approximately 18% for containers, one 5% for crude tankers eight per cent for product tankers and 5% for dry bulk.
Arie: Should the situation remain unchanged in 2025 total ton or Teu miles for all sectors are projected to experience only slight variations Panama Canal transits are essentially back to normal numerically with flight restrictions on certain vessels dress.
Arie: Please turn to slide 'twenty, So a review of the tanker industry.
Arie: World GDP is expected to grow by three 3% in 2025 based on the IMS January forecast.
Arie: The IEA projects, a 1 million barrel per tonne increase in global oil demand in 2025, Chinese crude imports slowed in 2024, averaging about $11 1 million barrels per day down, 2% or about 0.2 million barrels a day compared to 2023.
Arie: After a seasonally slow Q3 Q4 played out in a similar softer fashion on the back of the above mentioned slowing Chinese crude oil demand and OPEC plus delaying the unwinding of the $2 2 million barrels per day voluntary export touch from December 1st until April one 2025.
Arie: The BTT I averaged $9 56 for Q4 basically unchanged from Q3, while the B C. T. I averaged $5 71 from 18% below Q3. However in all cases rates remained in line with long term averages recent changes to U S policies regarding tariffs and sanctions are dealt with in <unk>.
Arie: 17 to 21 overall these changes along with normal seasonality and low global oil inventories should support crude freight rates going forward.
Arie: Please turn to slide 21.
Arie: January 10th 2025, the U S office of foreign assets control or fact issued new sanctions targeting Russian oil revenue with the U S. Adding a 186 ships, mostly trading Russian oil to its sanctions list.
Arie: <unk> action more than double the sanction vessels Astro the chart on slide 21, the total crude fleet now sanctioned is 9%, both China and India have said they will not allow effect sanctioned vessels to discharge leading the market to charter vessels from irregular fleet plc.
Arie: The OCC spot rates for Middle East Gulf to China as of February 11th are about 40% higher than January 9th that is the day before or fact sanctions were announced.
Arie: Additionally, on February 4th 2025 U S reinstated the quote maximum pressure unquote campaign against Iran, and instructs U S agencies to rigorously enforce existing economic sanctions and introduced new measures targeting Iran's oil exports with the goal of reducing them to zero from its one 4 million barrels a day.
Arie: Exports registered this past January.
Arie: Turning to slide 22, as previously mentioned, both crude and product rates remained at healthy levels due to solid supply demand fundamentals and shifting trading patterns crude.
Arie: Crude ton miles are expected to grow 1% and twenty-five product ton miles. However are expected to decline, 0.5% and 25.
Arie: This percentage increase incorporates continued red sea restrictions in 2020 five.
Arie: Turning to slide 23, the VLCC fleet contracted 0.2% and 24 and is expected to be similarly negative in 2020 five the decline can be partially attributed to own his previous has it.
Arie: To order expensive long lived assets in light of engine technology concerns due to C. O two restrictions enforced since the beginning of 'twenty 'twenty four.
Arie: The current order book is nine 6% of the fleet or 87 vessels. After a record ordering spree in 'twenty 'twenty four vessels over 20 years of age are about 19, 8% of the total fleet of 181 vessels, which is over two times the order book.
Arie: Turning to slide 24.
Arie: Net fleet growth was what five 7% for 24 and is expected to be four 3% in 2025.
Arie: The current product tanker order book is 21, 3% of the fleet and compares favorably to the 19, 1% of the fleet, which is 20 years of age or older.
Arie: Put in the tanker sector review tanker rates across the board continue at healthy levels. The combination of moderate growth in global oil demand OPEC sanctions new longer trading routes for both crude and product tankers and the IMO 2020 regulations should provide for a healthy tanker earnings going forward.
Arie: Please turn to slide 26 review of the dry bulk industry expectations for a seasonally strong Q4 started well with the DDI standing at 2084 in October 1st However, slowing Atlantic exports, along with unwind to congestion contributed to the index ending the quarter at 990, 752% below its start also ask.
Arie: Classes reached their lowest levels in December Capes led the way in Q4 down approximately 68% was panamaxes and supers down both about 33% the.
Arie: The yearly average VDI ended 2024 at $17 55 up 27% year on year, but approximately 21% below its 20 year average.
Arie: Dry bulk trade is expected to grow at 0.6% in 2000 and twenty-five enhanced by about 0.9% increase in ton miles. Most of this growth is anticipated to come from additional Atlantic exports of iron ore and bauxite, the vast majority destined for China and Southeast Asia.
Arie: With net fleet growth projected to outpace trade growth and twenty-five supply and demand fundamentals have weakened however, the growing bauxite trade to relatively low order book as compared to overage vessels and tightening DHT emission regulations remain positive factors.
Arie: Please turn to slide 27, the current order book stands at 10, 5% of the fleet net fleet growth is expected to be 3% in 2025 as always removed tonnage that will be uneconomic due to IMO 2023 C. O. Two rules vessels over 20 years of age are about 11, 7% of the total fleet, which is slightly up.
Arie: Higher than the order book.
Arie: Concluding our dry bulk sector review slowing growth in demand for natural resources should be balanced by restrictions in transit in the Red sea longer haul trades of bauxite at iron ore from West Africa to Southeast Asia, and a low pace of new building deliveries should support freight rates going forward as the freight futures market currently indicate.
Arie: Please turn to slide 29 for a review of the container industry. The Shanghai container freight index S. EFI is currently at 18, 97, which matches the opening index of 'twenty 'twenty, four and approximately 49% down from its peak of $37 34, and July 5th of 'twenty, 'twenty, four which was the highest level outside the pandemic era and calm.
Arie: As to the previously mentioned box rates containership rates remained firm on the back of continued rerouting of vessels away from the Red Sea going around the Cape of good hope, causing teu miles to increase by about 18%. This year firm time charter rates should remain the duration of the Red Sea disruption. However continued record new building ordering and record fleet growth.
Arie: Should eventually modify these gains in reverse course, when the middle East conflict finally settles in light of companies are certain a safe passage in the Red Sea.
Arie: Although the trade is expected to grow by two 8% and 25 net fleet growth of 10, 1% and 24, followed by five 9% and twenty-five should eventually pressure rate downward.
Arie: Turning to slide 30, the current order book stands at 26, 8% against 13.9% of the fleet 20 years of age or older about 80% of the order book is for 10000 teu vessels or larger.
Arie: In concluding the container sector review should Suez Canal transits returned to previously normal level of supply and demand fundamentals will be challenging when combined with geopolitical uncertainties and continuing elevated order book.
Arie: However, a world GDP growth at three 3% for 25 and ongoing strength in the U S economy provided positive counterpoint for a challenging twenty-five.
Arie: This concludes my presentation I would now like to turn the call over to Angela for a final comment Andrew Leaky.
Angela: Thank you Ted.
Arie: Thanks.
Arie: Great.
Arie: On the call for questions.
Speaker Change: Thank you and at this time, if you would like to ask a question. Please press the star and one on your telephone keypad you may remove yourself from the queue at any time by pressing star Q. Once again that is star one to ask a question.
Speaker Change: And we will take our first question from Omar knockdown with Jefferies. Please go ahead.
Speaker Change: Thank you.
Omar knockdown: Hi, good afternoon. Thanks for the detailed update as usual I'm always very much in depth.
Omar knockdown: Why don't the Angelica in your opening comments you mentioned all the uncertainty in the market. These days.
Omar knockdown: That's always been the case, but it just seems like it's just brilliant clearly with tariffs sanctions conflicts in the middle East and in Russia, It's all leading to a lot of unknowns.
Omar knockdown: Okay, how has that sort of affected your business.
Speaker Change: Does this cause you to change anything in terms of.
Speaker Change: How you're operating or in terms of capital deployment, our shareholder rewards any color you can give us on that front.
Speaker Change: I think that's a very good question. Good morning at the Big thing is it yourself.
Speaker Change: 1034.
Speaker Change: Right.
Speaker Change: Right.
Speaker Change: Oh man.
Speaker Change: As a company we.
Speaker Change: And the whole strategy.
Speaker Change: You don't have the economic factors that you have a lot of jumbo.
Speaker Change: Is that how they won't be any job shops.
Speaker Change: That's a very important can be very important drivers for that business.
Speaker Change: You know Ukraine, Ukraine.
Speaker Change: Okay.
Speaker Change: The Red Sea in Iran.
Speaker Change: Additionally, then you'll have the direct.
Speaker Change: I can give you.
Speaker Change: Take for example, I think of the buyback.
Speaker Change: Gotcha.
Speaker Change: And that does mean that men layoffs.
Speaker Change: 9% of the tanker fleet.
Speaker Change: Well, it's basically involved.
Speaker Change: As Martin.
Speaker Change: And then you guys have any grand where it actually opened.
Speaker Change: We haven't seen it yet these kind of events Gary.
Speaker Change: Okay.
Speaker Change: The market on what sectors out there.
Speaker Change: So the big benefit.
Speaker Change: You are diversified.
Speaker Change: I mean, the big thing that I've said.
Speaker Change: I agree.
Speaker Change: Billions of contracts.
Speaker Change: We have time to think.
Speaker Change: And breakeven for a day or so.
Speaker Change: $425.
Speaker Change: Two thirds of our day contract.
Speaker Change: And there are a lot of our open days, which adds dry bulk index.
Speaker Change: Index with the ability to redeem it.
Speaker Change: What market.
Speaker Change: Gotcha.
Speaker Change: You know the upside.
Speaker Change: Basically you need to watch.
Speaker Change: If you can tell me how.
Speaker Change: Grant.
Speaker Change: Or how would we apply.
Speaker Change: It can have quite techniques.
Speaker Change: Different takes on that on day one.
Speaker Change: Especially I think so.
Speaker Change: The Tigers dry bulk containers I mean, they've had nine minutes going through the different factors that cause Daniel.
Speaker Change: Anything that's possibly.
Speaker Change: Yes, yes definitely.
Speaker Change: Yes, that's it's a great point and obviously the benefit of diversification, where youre not just stuck.
Speaker Change: Bracing for care for one outcome I guess, maybe just in terms of you know in container shipping.
Speaker Change: 224 was amazing.
Speaker Change: In terms of freight rates and in chartering activity.
Speaker Change: Obviously, we come into 'twenty five the market is still relatively tight given the diversions from the Red Sea well what is the.
Speaker Change: How would you characterize it.
Speaker Change: Your customer base at the moment in terms of chartering habits is there still an elevated level of interest to secure the capacity or has that waned given all this uncertainty.
Speaker Change: If it takes out some of the majors from the liner companies you'll see that these are not bad.
Speaker Change: Right.
Speaker Change: There's an appetite for duration and eh.
Speaker Change: We have seen it.
Speaker Change: I mean, there was a.
Speaker Change: Basically.
Speaker Change: Everything we have seen on that.
Speaker Change: He has Dr Chang.
Speaker Change: We have nothing to say, it's got an eye opening.
Speaker Change: And now there's uncertainty youre talking about.
Richard: Thank you Richard.
Speaker Change: Cool.
Speaker Change: Gosling dressing so I don't think that you'll see quickly unless you see a stable environment, you'll not see a change on days.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Sorry go ahead to continue.
Speaker Change: No I was just saying that it will still continue to go out on vacation basically just didn't have that.
Speaker Change: Yeah, Yeah, it makes sense.
Speaker Change: Well great. Thanks, Angelica really appreciate the comments I'll turn it over.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Thank you and it appears that we have no further questions. At this time I will now turn the program back to Angelus for any additional or closing remarks.
Speaker Change: Thank you this completes our call. Thank you.
Speaker Change: Okay.
Speaker Change: Thank you and this does conclude today's presentation. Thank you for your participation you may disconnect at any time.
Speaker Change: Okay.
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