Liam Burke: Great. Thank you, John.
John Wobensmith: Thanks, Liam.
Operator: Your next question comes from the line of Sherif Elmaghrabi from BTIG. Your line is open.
Sherif Elmaghrabi: Hey, good morning. Thanks for taking my questions.
John Wobensmith: Good morning.
Sherif Elmaghrabi: Good morning. So first charter-in days roughly doubled in – from Q2, but they’re still pretty far below what we’ve seen for the last couple of years. So rates have seen a pretty significant improvement from Q3 to Q4. So should we expect charter-in days to tick higher for the end of the year? I guess any general color on how you’re thinking about chartering in would be helpful.
John Wobensmith: Yes. So keep in mind the chartering and that we’re doing is very short-term. It is used to create arbitrage trades on our existing fleet on cargo that we have booked forward and used to create alpha over the indices, which we’ve obviously been very successful at, particularly in the mid-size sector. I would expect to see some higher charter-in days as we get into the fourth quarter, or I guess we’re really in the fourth quarter but as we get to the end. The market has moved up. We also have been fixing forward some for first quarter, which is what we typically do. So I think you’ll see more charter-in tonnage in the first quarter as well. But keep in mind that chartered-in tonnage again is not long-term. It’s usually for short-term cargo liftings, where we’ve identified an arbitrage opportunity to use somebody else’s ship and then take our ship and go perform another cargo.
Sherif Elmaghrabi: That’s very helpful. And then maybe a bit more macro on the North and South American grain story, we’ve got a record grain season in Brazil, but then in the U.S., we have low inland water levels, kind of constraining exports. So I’m wondering how you see seaborne winter grain exports shaking out, especially given the low water levels on the Mississippi could persist kind of into Q1?
Peter Allen: Yes. No, absolutely. Thanks for the question. Yes, look, it’s obviously been a terrific grain season out of South America. It’s extended, it’s been definitely supportive to the overall Atlantic market that we’ve seen, and it’s been good to offset some of the reduced volumes out of Ukraine in particular. In the fourth quarter, yes, wheat exports out of the U.S. likely to be lower. But again the – in the not too distant future, we’ll have South American grain season picking back up in towards the end of Q1, so should be relatively short lived. We are getting some help on the Panama Canal situation, which is extending ton miles and taking ships. Instead of going to the Panama Canal, they’re going through Suez.
So it’s extending ton miles there. So there are some fleet inefficiencies that are supportive to the current market. And yes, like John mentioned in prepared remarks as well as during the Q&A, we do expect volatility in Q1, but we’re doing a good job of fixing over that. We have three period – short period deals on the Ultra/Supra at 15,000 to 16,000 that are fixed over through March, so pretty good job on that side.
Sherif Elmaghrabi: Okay. Thanks for taking my questions.
John Wobensmith: Thank you.
Operator: And ladies and gentlemen, our Q&A session has ended. This concludes today’s conference call. Thank you all for participating. You may now disconnect.
