Operator: And we will take our next question from Chris Wetherbee with Citigroup.
Chris Wetherbee: I wanted to ask, Angeliki, maybe as you think about this entity, so you have, obviously, exposure to multiple end markets here. And I guess, each one of them is in a little bit of a different part of the cycle. So as you’re thinking about incremental capital and where you want to put that to work, how are you approaching that? I understand the newbuild opportunities you have both on the container and the tanker. But as we’re thinking about where you think about putting new capital work, where you’d want some emphasis to be placed, where would it be?
Angeliki Frangou: Chris, the reality is a lot of calculations, a lot of work trying to see what is the best opportunity. I mean you saw where we allocated a good amount of money this quarter. We have entered a new asset class, the Aframax MR2s. And we build it on that because we see efficient vessel that have the specifications that we have additional specifications. We see a lot of opportunities with the oil majors on trades that are actually expanding. Same with MR2s, we see certain counterparties that they need specific need with shortfall has higher emissions, but if we have energy-efficient value, that can really mitigate the situation. So we look at the opportunity and build on that. On containers, I mean this was a previous transaction and fixed at a good time.
But we always review and we see what makes the long-term returns, what will give us the best residual value and provide us an attractive return. So this picture is a very simple thing: attractive return over 10% and have low residual value risk because the asset has a longer duration.
Chris Wetherbee: Okay. That’s helpful. I appreciate that. And that makes sense. And I guess maybe on the other side of that coin, so I think there was 14 vessels that were sold year-to-date. Could you talk a little bit about how you think about opportunities to maybe monetize some of the fleet and maybe where you want to emphasize or where you see relative value between asset values and charter rates today?
Angeliki Frangou: Basically, there is a graph that we have unit recovery that we see tankers strong values, of course, strong returns. I mean we optimize that fleet. And then on the dry bulk, you have more or less volumes and long-term net of the vessels, approximately about 80%, 90%. So what we are doing is basically, we see exactly what is maintenance CapEx, what is the age of the vessel, knowing the regulatory environment for the next couple of years, meaning that you will have carbon tax. In Europe, there will be requirements. So you target a vessel that makes sense, add value to sales. And we have done that. You think that about for the fleet we have, on an average year, we should have about at least 10 vessels renewal basically, just to renew and keep the age.
So yes, we had more vessels in the beginning. This will in 2024 drop to about on the average about vessels. This is not mathematical. It depends on the market, but this is approximately the kind of a renewal you will need.
Chris Wetherbee: Okay. That’s the way should be thinking about it and obviously, I guess, market determine market fluctuations will determine kind of how aggressive you are, I guess. And then maybe just one more on the tanker cycle as you guys think about it. Obviously, some macroeconomic concerns flowing through here, I guess. You had said you always do a really nice job outlining your thoughts on what the market looks like. I guess, as you’re thinking about the potential for either a recession or slowdown materially in U.S. economic activity and demand pull kind of in developed markets, how do you think about that kind of plays out in 2024 and influences your view on oil demand?
