Question-and-Answer Session
Operator
(Operator instructions) We will hear first from Doug Mavrinac with Jefferies.
Doug Mavrinac – Jefferies & Co.
Great, thank you, good morning all. I just had a few questions for you all. First, John, you were talking about the strength in rates and some of the reasons from the strength in charter rates. One thing that we’ve noticed as well is that, not only the spot rates that are strong, but it’s the time charter rates that are strong. My question is, how firm do you guys believe the recent strength in the time charter market to be, i.e., or the number of charters that are included sufficient to say that there’s a lot of conviction in the current time charter rate environment?
John Tavlarios
We’ve seen strengthen the 1- to 2-year time chart market, I mean, numbers that are being thrown out there are strong numbers and we do feel that sentiment has sent – people expect the strong market until 2009. I mean that, sort of, seems to be the sentiment out there.
Doug Mavrinac – Jefferies & Co.
Right. And it is possible to discern how much of this strength in the time charter market is attributable to the strength in spot rates versus maybe the increase in conviction that the IMO phase out is going to have some teeth especially after that oil spill in late 2007.
John Tavlarios
Well, I think it is the combination. I think really what’s driving them right now is again the demand and the outlook for 2009 just being stronger.
Doug Mavrinac – Jefferies & Co.
Yes, okay. Great! And then, one final question. How has that improved charter rate environment, or if it has, cause you guys to may be readjust your thoughts related to either the employment of your Aframaxes in the spot market and/or any acquisition decisions that you may make? And then, how do you balance those thoughts against what your outlook may be?
John Tavlarios
Our outlook obviously because we are looking at newer tonnage, our outlook is beyond a year or two, so when we are looking at something that makes good financial sense for the company, it’s with a much longer outlook. On the time charter side of our Aframaxes, our strategy at that time was to put away our Suezmaxes, but we found we are near to now the three-year time charters, and we are to be opportunistic on our Aframaxes and that has actually worked very well for us.
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