Theodore Young: Yeah, sure. Yeah. So, Sean, exactly what John said, so aside from there being a mix, it’s really the business, it’s really the cycle, right? Our guys are booking now here at the beginning of February, for voyages that won’t complete until at the earliest sort of April, and maybe even further out. And so, as a result, when you’re trying to do undertake a modeling exercise, and given how the loaded €“ sorry, the revenue recognition accounting works, you really tend to find that, there are 2-month lagged average is going to be a lot better. Tim will give you more on the specific trade lines and there’s some €“ the rates behave differently there, particularly we’ve seen U.S. Gulf to Northwest Europe be a sweet spot, but Tim will comment on that.
But it’s really just simply a better €“ look, if there’s no perfect way to do this, we acknowledge that we wanted to give a little guidance to the investment community about how to maybe narrow or make it somewhat more accurate. And, again, I mean averages are tricky. We booked somewhere around 9 to 10 voyages a month, so 20 some odd working days in any given month. So it becomes quite tricky to strike broad averages, but we at least feel that looking at it 2-month lag is going to give you a better indication of what we expect to see in for quarter or what you can expect to see when we deliver quarterly results.
Sean Morgan: Okay. Thanks.
John Hadjipateras: Do you want to hear from Tim about the mix, actually?
Sean Morgan: Yeah, that would be good, actually.
John Hadjipateras: Okay, Sean, it was a great question. Tim, have a go and you can do it quickly.
Tim Hansen: Okay. But as Ted mentioned, there’s basically three routes, so the Ras Tanura-Chiba, or East of Middle East to Far East; and then there’s a route U.S. Gulf to the Far East and U.S. Gulf to Europe. And I actually indexes for these three routes. They are not used very much, because there have been too illiquid and you can say, trading purposes and other which was really the intended for these rules to be published. So they’re not really used on a paper trading basis. And the market is not so big to have too many indexes, which then makes them adequate. But you can say, our trading is probably 80% out of the U.S. and 20% out of the AG. And the U.S. East is the most active spot market route €“ of the routes and it’s also the longer route.
So you can say it will have a bigger impact fixing on U.S. to the East, and then the AG to the East, or U.S. to the West. So it will imply the ship for 70 days instead of 30 to 40 days. So that route is really the most significant route I would say to match it up and, of course, people will change from one patient to the other. One of the routes is paying far less than the other ones, but it’s a matter of like, how do you deploy your ships, and which cargo do you for and where do you come open. But I would say the most traded route is U.S. to the Far East. So what I would kind of watch out for that as well to kind of judge your readings and they are like said on the AG East, the index route doesn’t take into account kind of our waiting and it doesn’t take into account, I think time as well auction fees for the Panama Canal.
