Earnings call transcript Q2 2023

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Operator

Thank you for joining us for Navios Maritime Partners Second Quarter 2023 Earnings Conference Call.

With us today from the company are Chairwoman and CEO, Ms. Angeliki Frangou; Chief Operating Officer, Mr. Efstratios Desypris; Chief Financial Officer, Ms. Eri Tsironi; and Vice Chairman, Mr. Petrone. Ted

this go being of to website www.navios-mlp.com. reminder, the To Navios call at please webcast, the conference a webcast. is access Partners' As Investors section

page, link in referenced earnings conference be middle You'll the also today's in will there. the copy of webcast of see the found and call a presentation the

Navios Now, I forward-looking Harbor Reform within meaning the Safe of statements Securities Act conference Litigation This will statement. review Partners. XXXX about the the contain call Private could

not management, historical actual upon and are Such subject Forward-looking forward-looking and the based statements that could results are risks are facts. the from materially expectations forward-looking statements statements cause to differ which uncertainties, of and statements. beliefs to current Navios Partners are

with herein and set update in Navios obligation Such call. The information the be Commission. should Partners the any contained Securities of risks fully does Partners' are more such forth Exchange to information in discussed understood light in assume risks. conference not filings this Navios

today's industry The segment data; first, Desypris give overview we'll will results; Partners Navios call then, remarks; Partners' Ms. of questions. Navios the will Ms. take lastly, an give Mr. agenda Tsironi Mr. to of opening offer is provide an next, will next, for overview; financial will and an Frangou follows: overview open Petrone as call

the over Angeliki? turn and Frangou. to call Angeliki I CEO, Now, Navios Partners' Ms. Chairwoman

Angeliki Frangou

us joining you call. today's of all on to morning Good

which XXXX, net I reported for income am of million. second revenue in $XXX.X we pleased of with results million of the a quarter $XXX.X and the

of net per unit for to $X.XX the pleased a quarter. We earnings report are common

age asset an classes publicly-listed years. shipping leading with diversified of in vessel about sectors, three X.X is XX in average Partners a Navios company,

based charter-adjusted equally vessels, into We three roughly have on split a sectors value. XXX

currently challenging. with deal is China experienced tanker, and fearing macro Trade of uncertainty inflation prospects. the exited to recession. in Whether deflation. The relatively be economic a war continue or healthy, be dealing dry, Ukraine. while about by West, great future the potential anemic growth has pandemic it appears container addressing partners environment to since impacted is The while there's

that as rate. focus We things continue on can our to reducing control, leverage we such

stated so net because range picked that falls XX%. leverage [steel XX% the This LTV LTV deterioration within of to quarter, in of to up goal Our our past value] some is reduce net slightly (ph).

offset (ph) However, you -- maybe] this can accumulated view our how we mentioned [so cash important most this so I that of single understand this decline. metric.

X. Slide to turn Please

per million increase cash As quarter. you sheet, have $XXX last balance our can see, on $XX approximately of we million an of

through of About XXXX. an the average an X.X% interest used X%. was XX% current interest implied X.X% fixed rate representing XX% interest rate of of earning investing secured financing million X.X%. rate debt, our of treasury are in at average $XXX used of consists our is $XX We at finance rate This and $XXX refinance fixed the our on was million two X% and XX new debt. cash our vessels about to function to additional of Overall, on second of average The quarter in average quarter net We an interest MRX annualized remaining weighted on million margin representing vessels debt, base XXXX. debt, second X%. our of our newbuilding floating

As a for XXXX, in of MRX of total announced fourth vessels the two purchased we quarter million. $XX

years have years, earned of value XX% end and day having We all $XX,XXX be vessels five-year net with of XXXX. we per periods of exposure, half only these to economics the residual in of the as the of follows: can of recently expect of while life. $XX.X overall out the purchase second and up EBITDA of XX delivery summed take aggregate to XXXX at five million, rate remaining charters first useful to these for vessels chartered vessel. the The the half a expect We At

During the yield. we'll enjoy annual XX% charter,

sold generating vessels, In expected $XXX including $XX.X two MRX we newbuilding The XX two be update: vessels, additional sales and to those three XXXX an with vessels in aggregate sales year-to-date, proceeds offset for of Fleet XXXX XXXX. of vessels million. purchase We are delivered million.

flow operating strong. cash Our is

of For million. cash contracted the by remaining to six expense months revenue XXXX, is $XX.X expected our exceed total

should cash additional generate We half have XXXX. we significant X,XXX open/index of the second days to in expect

strong. X. our Slide transformation Since performance to XXXX, been turn financial in our Please has

XX% second quarter the the and higher is XXXX. second XXX% quarter higher XXXX Our than than quarter adjusted of second EBITDA XXXX of

XXXX. in than difficult than We XXXX XXX% believe markets. and Looking can almost diversified higher continue backwards, our model was that higher business XXXX XX% perform to

Efstratios? I over Partners' Navios the Chief Mr. presentation now Officer. Operating Desypris, to turn Efstratios

Efstratios Desypris

Angeliki, and you, good morning Thank all.

turn $XX,XXX our We which of XX% an operating the details cash flow half Slide X, per rate of net Please second fixed strong free days for available to average of day. XXXX. at

XXXX by about contracted cash six million. remaining expected Our the revenue exceeds $XX of expense total months for

will index-linked that additional X,XXX provide open have days We and profitability.

in in our our Slide XX by moves segments demonstrates believe volatility action. statements. financial from redeploying platform into aim to We segments. diversified well-performing from a benefit underperforming assets flows on We cash base counter-cyclicality diversified asset

this can base. playing our out see You dynamic asset itself in

say, and a to, respectively, quarter net value to In values. As of the dropped the tanker values fleet XXXX, compared change quarter volumes decrease is by second X%, X% container approximately decreased to drybulk our the fourth of sum, of and by X%.

also we In to into attractive other allow returns, can optimize In patient. can be with period Multiple chartering. segments charters. enter us we segments, segments

day, drybulk containerships fixed net per Our at $XX,XXX day. XX% net is our our net at per fixed XXX% tankers fixed XX% $XX,XXX are fleet are per $XX,XXX day, at and

bottom, rate see the XXXX available total of our can for third we the average the per quarter $XX,XXX from fixed XX,XXX days overall the chart on XX% at net you net As day. of of

XX. Slide turn Please to

from renewing We and technologies fleet more benefiting always so vessels. profile, a maintain we young are the carbon-efficient that newer

fleet XXXX. billion We have through vessels, in to newbuilding investment delivering remaining $X.X XX our

about of contracted in about million, the related revenue total of $XXX creditworthy into a for which $X.X we vessels charters, billion entering by for average XX acquired duration six-and-a-half we containerships, hedged In years charters. generating long-term

a vessels have five million. for rate price net $XXX been average at In the by $XXX $XX,XXX of we space, years an for six vessels approximately total the per subsector tanker out chartered of These revenues day, approximately ordering of entered million. generating LRX/Aframax

four We for MRX high-spec the $XX,XXX, revenues $XX million. net five also about approximately years average daily an of $XXX chartered ordered for million. vessels been generating out Two have rate of of at vessels

completed drybulk Capesize The XXXX was in the with our delivery eight of vessels. program June of newbuilding vessels

for Year-to-date, sold seven seven strong six in have price with taking a sold vessels total of for advantage tanker average XX.X about million. tankers XX active We have $XX.X $XXX an sold drybulk vessels of approximately $XXX.X opportunistically vessels We selling market. -- of Also, also we vessels, been fundamentals. segment for years million. based we on tanker older million, age

our Moving employment to Slide secure to XX, for fleet. long-term we continue

over the MRXs, mentioned on vessels. second per million $XX have created $XXX and about to relates of we relates $XX,XXX million quarter, million Angeliki to revenue. two net earlier, contracted As in three Approximately tanker newbuilding $XX day additional five-year charters existing

relates through our $X.X the quality to tanker of Our $X.X group billion, total contracted our revenue and next two-and-a-half to of amounts XXXX XX% billion fleet, fleet, relates revenue are earned containerships. billion relates of in to extending which counterparties. About $X.X Charters years. a $X.X contracted drybulk with will to diverse billion be

through financial Eri to Eri? our pass Tsironi, who the CFO, take now will will the highlights. I call you

Eri Tsironi

Thank you, good morning and Efstratios, all.

the I unaudited in the June and and information second summarized results first will on slide company's is release financial website. for is financial half in briefly ended XXXX. review available the our press the year The quarter XX, included presentation,

Total XXXX. for XX% XX. Moving in the to million revenue $XXX.X increased to for the in period of million highlights same XXXX second the compared quarter Slide earnings to $XXX.X by

a for with million U.S. because period U.S. because rules for $X.X by is our Time revenue understated rates of the GAAP de-escalating require straight-line basis. charters the charter -- recognition of GAAP on revenue

to XX,XXX, Available XX,XXX days the year. same last by quarter to for increased compared XX.X%

Our was charter XXXX line average equivalent QX time levels. per $XX,XXX day, in rate with

improved tankers at our to for year rate sector same XX% last for day. to by $XX,XXX of by $XX,XXX terms compared tankers last the to In rates increased XX% drybulk same lower and performance, per compared containers $XX,XXX the containers per to our TCE enjoyed period and our contrast, year. period rates day. XX% TCE In was both

$XXX.X QX to XX% million by EBITDA increased same $XXX.X the to for period XXXX million compared for year. last

sale Our gain the related EBITDA of includes vessels. to four $XX.X a million

expense income Net costs. XXXX, $XXX.X QX decreased by XXXX increase due X% as and mainly a interest million $XX.X to rate for of million $XXX.X in QX interest the in debt levels to net compared our in result million increase a our to

interest cost QX average XXXX. in to (ph) QX XXXX in [X.XX%] X.XX% from Our increased

impact positive and amortization income has of million been unfavorable increase $XX.X of reduction negatively net amortization a affected in addition, by $XX.X and the million expense depreciation In the leases. a in

$X.XX. unit XXXX common QX for per were Earnings

the XXXX to XX% period in increase in U.S. recognition in same The the in rules of to revenue Total million the increased rates same a by result revenue million to XXXX. charter basis. of require $XX.X our revenue by increase $XXX.X was for XX,XXX days of with to revenue for straight-line for available is for period the understated Time because $XXX.X de-escalating XX% XXXX. on first charters a a XX,XXX GAAP the million period our compared half for compared

Our slight $XX,XXX per day. equivalent improvement a to fleet charter rate showed time

our same day. the containers compared both year per compared by increased at per to tankers our enjoyed the XX% by year. $XX,XXX for terms rates XX% rate TCE last for and In contrast, $XX,XXX of was period and sector tankers our In performance, period $XX,XXX rate to last XX% the containers day. same drybulk TCE lower improved to to

half million EBITDA first $XXX.X by compared for in for to same million XXXX. increased the the period to $XXX.X of XX% XXXX

Our a sale XX related million of vessels. to the EBITDA gain $XX.X includes

first XXXX same $XXX.X the to last million compared for the period million by income increased Net of for X% $XXX.X year. half to

in Our interest affected increase our expense to costs. increase interest net debt and our levels the $XX.X million in income net by was rate negatively due a

'XX. the interest in average of X.XX% Our half the in X.X% increased of XXXX first half cost first from to

been $XX.X million negatively of of unfavorable In the and in affected impact and million reduction amortization the amortization in increase by depreciation addition, leases. net positive income expense a $XX.X has

common for per first $X.XX. half Earnings the were XXXX unit of

briefly Slide sheet Turning XX, I discuss will to key balance data. some

newbuilding As adding program the 'XX, of expenses million under XX sold debts. XX, $XXX.X paid cash and $XXX.X We million million. for the $XX.X vessels capitalized and net, of of improvements. after $XXX vessel first other our and cash for half were cash acquisitions respective In installments pre-delivery repayment million of and million June we their equivalents $XXX.X XXXX,

the current Our management which decreased other the mainly in other liabilities settled assets due to current the decrease made while charterers, following our agreement. from were post in accordance accounts receivable payments decreased mainly year-end, with

portion, the billion. including deferred fees, reduced of slightly debt-to-book XX%. borrowings, capitalization net $X.XX to Net current Long-term decreased to

highlights profile. XX Slide our debt

while structures, of has lease of and debt bank an at between our interest sources average funding debt XX% X.X%. rate our diversify to continue We fixed

We reduced mitigate also the basis approximately XX to floating tried year-end. of rate from having to XXXX compared our X.X% the average part by points to X.X% for cost, interest rate increased debt margin

Our maturity significant is single with year. no profile due staggered in balance any

update XX the developments. of Slide QX gives XXXX debt an

our of program, of already financings concluded documentation approximately of terms an margin newbuilding phase in at XX% X.X%. In newbuilding or average our are

to our the used also first while lessors, opportunity South Korea. agency-backed have credit We and concluded resources, financing in export banks expand China our and facilities adding new

During financings. facilities, total maturities. margins relates respective we a where million to existing of decrease the quarter, extend arranged million of to of $XXX.X have we managed and $XXX.X refinancing new

can our Slide to see XX, Turning ESG you initiatives.

devices and vessels conscious and to and a continue energy-efficient core We diversity, new reduce efficient values inclusion energy-saving include vessel whose is emissions socially operations. safety. in group, through Navios invest

We ethics. governance corporate and of code strong have very clear

committees majority independent and composed Board Our oversee is that directors management by operations. and our independent

you Ted take the to pass Ted? to call industry I through now Petrone section. the

Ted Petrone

you, Eri. Thank

XX turn Please of Slide to industry. for the tanker review the

correlation day last continue imported a averaging and GDP in XX% a grow world and is or period X increase imports economic by July, to to crude GDP and day increase July demand barrels record growth. to a In June. increase is barrels XX% world per day projected per Chinese XXXX through in the XX.X X.X While rise, the per same barrels global million XXX.X in million based there oil both for on barrels of a uncertainties IEA day of per million demand barrels forecast, million day in IMF's assisted oil year, XXXX XX.X to million Ukraine crisis, spite over expected XXXX. per the X.X% X% XXXX, an the

routes, fleet a fundamentals. tanker QX Minimal of in on across softened strong seasonality for Gulf. on headline haul the of trading all rates put well above longer downward Following demand Suezmax and out OPEC but only QX, slightly shifting especially very patterns rates, asset VLCC Middle although less strong and supply have recent and growth and long-term resulting remained the cut, the classes, particularly pressure averages in Aframax. The back numbers, than East

XX. Slide to Turning

previously also aided product across strong crude board mentioned, and As crude are previously the Product and refinery Russian remain mentioned the tankers exported Indian as margin to rates demand X.X% discounted and supply due product. by both mile East clean product Ocean to XXXX and fundamentals. to increase and XXXX. and expected growth Far is ton the XX.X%, ton mile continued in by with growth the respectively, Atlantic returning to healthy crude

order light concerns low about the Five in of macroeconomic Slide technology to year. of XXXX. to decline growth during X for balance is projected of XX order hesitance The will the vessels, of X.X% order fleet deliver Vessels fleet or due the and are of this 'XX. of be in and in growth which enforced years XXXX attributed fleet, X.X% restrictions vessels, about only owners' XX% current and years. XXX fleet of times to one the XX. beginning long-lived the is book partially for over COX VLCC engine XX each X.X% 'XX only age Turning uncertainty since the XX net to negative assets record or at expensive, is This can VLCCs lowest year, book. this

fleet, Slide The is the X.X% X.X% is one X.X% years fleet tanker XXXX Product at the lowest of and XX. book and projected Turning of product approximately net the or which to on tanker is X.X% to growth of for of age order it's record, only XXXX. fleet the current equal for older. XX

as the rates Combination at strong IMO In products, continue for order going growth below oil healthy new demand, and crude earnings global three as concluding global book provide routes should average the XXXX across levels. forward. both lowest trading review, tanker decades, regulations tanker the longer well tanker in sector board the for in inventories, and of

drybulk continue Please outpaced of on Chinese turn to unwinding to That, up while XX and the imports review the for first growth fleet of volumes industry. net the cap put slightly rates. in held trade congestion, the Slide drybulk growth. half, the well a

BDI a over For providing QX, majority with the QX increase increase. [Capes] the averaged X,XXX, (ph) XX% that of

stood X,XXX. BDI As of yesterday, at the

to will growth if disappoint, to economic these it with address be past Chinese indicators economic to While continue remains levels. seen the government sufficiently issues revive

first fleet GHG and positive reflected factors, fundamentals seasonal intact, supply and 'XX normally FFA softening half Overall, of is remain the over of low demand regulations U.S. order stronger market. tightening by the to second which about the forward, historically projected Going year. increase second half a are remain in half X% and this trade book, growth, in emission declining dollar net drybulk

demand. turn over the year. trade year. is in of iron expected regard ore by second Please grew With half this of to ore, healthy this iron Global iron GDP should to XX. maintain increase of half Slide QX China's X.X% X.X% Should XXXX the to implement first stimulus this measures, in China already at ore

Coal by the trade a ban of second haul X.X% towards as routes. coal impacted longer over XXXX. Seaborne on Russian in year war coal continues trade this expected trading shifted be the first is the to to Ukraine, of half in by half decrease patterns

recently impacted X.X%. X.X% Ukraine, aided volume Seaborne also the ton routes. Black XXXX, grain expected trading of by grain towards abandoned shifting the longer deal. Russia is by patterns haul is coal, with Sea by mile the grow trade global in As trade war growth to export in grain

shortfall to Additional make the add to up ton are further grain Russia expected Europe and from Brazil, volumes miles. and

about stands XXXXs. total of favorably order the which lowest current become book. the of of owners one with as the book X.X% enforced The XXXX X.X% at fleet in XX. age a Slide low has early only growth due to years for the XXXX removed rules and X.X% Net COX over X.X% fleet, fleet, turn tonnage are year. IMO historically that is the since at XXXX Please compares expected this uneconomical XX the Vessels order of of to since beginning

sector deliveries and with Panama going drybulk the routes concluding continuing In longer-haul a forward. sanction-related pace the at of will support all combined demand natural congestion war newbuilding rates freight Canal, for resources, slowing review,

to Container projection well continued of growth to at of levels, trade increase the projected at only initial Please which historic XXXX than currently XX. opened from slightly X,XXX. growth year XXXX down The to it slightly the SCFI, turn Slide Index, in X.X%. rates, is half to although negative improved is the with XXXX Freight Container X,XXX, lower first surprise Shanghai or outlook at XXXX compared X.X%. noticeably the Overall,

is issues, and war on remain challenging trade including to deliveries. Ukraine inflation, elevated macroeconomic container expected from in Total XXXX the

As lower note sales average. U.S. well lower still low, and retail on you'll purchases right, ratio is takeaway port left growth consumer above of to U.S. The graph inventory easing the off long-term continuing goods, is pre-pandemic slowed, of still recent in port the on congestion. the on U.S. shows the graph have the Imports which the bottlenecks levels. but below the

Turning to book against The X.X% the fleet for Slide expected About larger. age or years XX.X% vessels at of older. be XX. XX,XXX for TEU book is and Net XXXX. XXXX of order to X.X% the or XX.X% XX current XX% fleet, the of for stands is growth order

sector In book. economic elevated challenged supply geopolitical concluding review, the and remain an demand the due to order and and fundamentals container uncertainties

both world the challenging stimulus a GDP provide a XXXX However, growth counterpoint for Chinese XXXX. and X% at to prospect XXXX of and

presentation. turn over for Angeliki? would like Angeliki to call the final our to concludes This comments. now her I

Angeliki Frangou

presentation. to formal open our concludes questions. the Thank you, We'll This Ted. call

Operator

with question first from come our Omar And Jefferies. Instructions] Nokta will [Operator

Omar Nokta

the did the Thanks deploying want for of been wisely. just about industry. and your Thank terms kind -- I I of you. would clearly, to across have Always active detailed update. afternoon. the you guys ask very business very in Hi. Good say, capital,

older and highlighted the into XX% selling XX% buildings. you've And I net you've this the investing to range. to ask quarters wanted that for been about talked on end to the LTV ships is been and you You've you, get down your new in several trying

at deploying newbuildings Given over the for in and get how getting capital couple path you are water about and see second-hand you next deploying do given thinking definitely you're ships, ships for of to but in drybulk uncertainty years, acquiring today you the for you the as we moment mentioned, opportunities capital in some there the second-hand Do interim, opportunities on about can containers? seen discounted getting that capital are selling above you got tonnage the today? [indiscernible] how the ahead at to there think deploy there's a the pullback overall, the see and bit thinking we've that just you've prices? And visibly in

Angeliki Frangou

Good morning, Omar.

seen we can between I and recession, Chinese have Chinese they the are the -- are nobody the knows inflation looking. anemic continued when. from and the countries and in we Western you unexpected I war macro the Ukraine, see think challenges, growth that how be mean if -- and environment, Ukraine exactly

to our watch were a market. sitting we renewal] to we we in [a the have (ph) be container fleet of So, fixed, XXX% the try segment, position so on see We conservative. done are

a what products XX% ton On market. here that and We sold our the then chartered and residual and at XX%, limiting position we also done, vessels, charter as a out crude so all is we miles counterparties, quality our replaced We -- the on is you We and are optimistic we see providing This continue very XX% this we well high-quality to rates. be -- where on about and vessels -- tanker longer attractive have we segment, which with our see basically values. fleet, remain. and on return of said, sold out we on vessels. very both the

are replacement -- Now done a our dry, fleet. on we the of have we

any strength, or less, replacement. replaced, we will have more are the are position and year, working. we On our on and our depending XX% We fixing of opportunistically vessels on fleet the

achieve, you what Our trying from very are can we clearly on to see our guidelines actions.

been two us. where have target articulating million we LTV. targets, liquidity think you want to per this per is is LTV have vessel, is fundamental And about our areas I to $X on what looking our -- Now, and vessel, net

year, As we will on happen we is on focus know next very in never how this what this. fundamental

Omar Nokta

Angeliki. Thanks,

vessel Just target? cash liquidity of -- you on mentioned hand is the or $X million per

Angeliki Frangou

something previously a is heard is this us. that calculated And have from very is basically Yes. net It the -- on you it LTV.

So...

Omar Nokta

on just a Okay. And then maybe follow-up.

You late ordered you MR year, two. ordered last newbuildings, another you just highlighted the two

charters? the the you is risk in just charter, the wanting is residuals fixed residual also, thought -- come two a newbuildings is first about the indications think process really initial your And really to the whether do to You two sense give of where interest you also thinking or secure two ones five-year these on the more? similar those -- first of two a given charter on of can plan low. the on latest down five-year orders, And

Angeliki Frangou

kind I that like of counterparties. mean this see we they mean see quality vessels. top-end we I users

are out getting We new getting older substantially cargo consumption. by have replacing about MRX, reduced vessel the less these footprint, talking we and this,

the securing be on second attractive So, demand vessels, this that but not a fix we for specification, two counterpart, are see we these we charters, eliminating quality we And price. same to able the in not think vessels, that this is to possibility. mean will I -- high necessarily

Omar Nokta

tankers, Got just container Okay. the newbuilding. took have finally And on in And just you the just you final ships. then it. your delivery in overall, maybe the the of newbuildings Cape

is, perhaps you as something see terms opportunity do least to your new do of newbuildings that buildings maybe drybulk -- terms portfolio if look at things there's that the out drybulk? In there's Or is if vessel sense? count? an that you you also biggest to further Or in is footprint in given do think balance of where for makes opportunities arise,

Angeliki Frangou

on graph drybulk prices nice Efstratios and this where point. have newbuilding [Indiscernible] this always the are in past the at basically

in of always are water. vessels, have but We investing the we open on -- possibilities

doing on math We segment. all are our are looking every we along and

drybulk to the -- which be XX bought done on buyer. charters. five-year was last think. trying vessels, them this quarter, have completed we and was over as are Don't I -- one charters already disciplined we put forget that in We And

basically, did we since XXXX. ago, we So, already we -- in position also have it this the and have time [indiscernible] is -- XXXX taken, some

Omar Nokta

Yes.

Okay. good. Very

Angeliki Frangou

[indiscernible]

Omar Nokta

Definitely. Yeah.

thanks turn it Angeliki. over. Okay. I'll Well,

Operator

you. Instructions] [Operator will question next our And with Chris Thank from come Citi. Wetherbee

Unidentified Analyst

morning, Good Chris on this good afternoon. Rob morning. It's for

Angeliki Frangou

Rob. morning, Good

Unidentified Analyst

you some peak Could an Europe. China you your West of little customer off of good lows Coast us we some We've of Mainland nice seeing for give market? next an China bit We've (ph) looking base of morning. give U.S. terms about in within in in to the -- year also to terms update [freighters] as Could to Mainland months. update a you're out seen pricing the of an and uptick what improvement in the past couple think container terms seen

Ted Petrone

Right.

up, So, down. some a bit our watching some are view we're is more different routes. are -- It's a the that macro

lot good. U.S. at the of on the lower the right, book order deadweight, half sizes, there's other pretty the is can the average has but looking leasing newbuilding bit. The of it below are the think what talked that XX,XXX You continues Remember, end I of charters users. We SCFI XX%. who is probably to -- on we these see ships to out we're a a overhang, consumer see about some been surprise

looking will be charterers ships. taking we're on that So, the forward at going very confident

taken, something, looking the have out there's of get if It's the housing to ships not been you're like there. and Most market. much

time challenging charter And the market. very So, rates have we and back see you'll surprise us fixed, some which and course, good objectively. duration, I XXX% is and But But numbers. can so going year for think for of been it of some up do us. a sign being is watch it's the for a the sit

Unidentified Analyst

off that couple next how charters of to regard sense. us Can you with charter? next makes fixed about guys are where the you kind coming just of in as kind years? And year, remind are the time we're thinking you over No, of

Angeliki Frangou

Efstratios?

Efstratios Desypris

year, Yes. around XX%. In next we have only

year. also starting have We of And from XX% vessels of to newbuilding are -- delivery containers the this around our get fixed. end coming vessels of the we

the So, 'XX we cash that will of say are I But the containership. would have also covered our are pretty we flows of vessels for the at fleet coming in the least that up. in much replacement

Unidentified Analyst

about having very certain which That's key a noise very, there's helpful. the low Obviously, impact in terms been the that change We're trade is levels Canal, you seeing of Are in kind and climate of causing seeing lot just trade routes. Panama of in backlogs. could other you water maybe impact higher demand what kind that levels from talk and level And routes? congestion low guys in? the vessels from operate you're of kind of the seeing just is you on broader across different

Angeliki Frangou

Canal. it through, XX% the time -- Yes, And and and congestion. point. congestion. was what then one good waiting like -- it a very go topical. saw and actually a is basically basically That at -- increase mean, we And divert. sea, creates Panama it it's is like that's have mile, pickup usually to you on the affecting will That big there. Ted a going for very of is but is is longer charging picture should affects It think from the following. that -- ton to be longer they I

I So mean...

Ted Petrone

Yes. It's such climate a topic, big the change.

you're now. to think going El I Nino

to better South of going Australia. less America, out grain some have of out You're

Also, which places. would in was yang. go think, the some in of the issues yin wrong the of Europe, biggest rain I and having barges the takeaway the ships China is There have inland. sort as from You eliminate water the

So change, to climate some going related is all different There's driving to the bulkers run Panama certainly or a congestion through chain side. think lot the is as Pacific. be ones which with the Angeliki that it's are every to it's going but the here. bring the really, going -- containers it's not But (ph) Canal definitely market, an issues of you're said, but are do [vessels] of instrumental the could from that back issues a at issue watching looking freshwater year, back, that in I we macroeconomics the more affect. winter for But the that issue, we're coming on grain, climate coming the that

Unidentified Analyst

getting the the to with trade container, getting where opposed the to Ted, or of are Canal, And that through is some something backlog is to inquiries Panama of the Canal Panama on yet the from the go inbound not Canal, route, of around kind as bulker really we're extend i.e., given you Panama of regard kind vessel Africa the seeing? operators through

Ted Petrone

yet. Yes. No, not

as going the you're think Gulf season more. that congestion more canal some to I see clogs and grain opens

going Far grain through seeing East. You'll some the out the Suez to be vessels going

what the even it But probably But going the but ships ships Angeliki that So, be routes, days, the is doing longer affecting XX more said, the seeing congestion, at it brings may up. into or I calculate to fleet it's which goes numbers. stays as be there up, you as other don't is if where you'll which canal on rates those the not about congestion stay four makes that so canal routes, and right, obviously think inefficient, in is, now much. normally XXX about we're

Unidentified Analyst

color. Yeah, sense. a Really of lot that makes appreciate the

Ted Petrone

you. Thank Sure.

Operator

time, there you. questions. are no this Thank At further

remarks. Angeliki turn call to closing like the I back So, over for would to any

Angeliki Frangou

you. quarter you. completes Thank Thank results. This our second

Operator

Thank This participation. today's program, does your we appreciate ladies and you, gentlemen. and conclude

time. any at disconnect may You

Navios Maritime Partners (NMM) 23 Aug 232023 Q2 Earnings call transcript