Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line Omar Nokta from Dahlman Rose & Company. Please proceed.
Omar Nokta - Dahlman Rose & Co.
Thank you. Good morning, guys.
Ferdinand Lepere
Good morning, Omar.
Joseph Royce
Good morning.
Omar Nokta - Dahlman Rose & Co.
Good morning. I just wanted to get a sense on the delays that you disclosed. Is that something that you'd try to do yourself or is that something that you tried to have happen or is that just delivery delay from the yard?
Ferdinand Lepere
You're talking about the new building?
Omar Nokta - Dahlman Rose & Co.
Yeah.
Joseph Royce
Yeah it's the yard. We actually, as we're working at this -- it's working in our favor obviously because it's better to have the ship couple of months delayed. But this is then the yard's delay.
Omar Nokta - Dahlman Rose & Co.
Okay. And you feel good about the deliveries coming on schedule or the new adjusted schedule?
Joseph Royce
I do. In fact the first delivery stays on target; we'll have a nice voyage coming in from Asia. And this is part of what we're starting to see the improvements in our steel parcels and general cargo services for the second half of the year.
We're starting to see more enquiry and these are good signs, especially as the new building start to come on stream.
Omar Nokta - Dahlman Rose & Co.
Okay. And just I noticed that your operating expenses have been coming down as you'd said they would. Is that a good run rate for us to expect going forward in the second half, say 25 million a quarter?
Joseph Royce
Yeah, we've been working very, very hard at this, not only looking at our expenses, but certainly operating ships in our business and we don't see any real changes in this trend as the year progresses.
Omar Nokta - Dahlman Rose & Co.
Okay. And I know this is a tough one to answer but based off of what we've seen in the market thus far obviously the Baltic has improved on average from the first quarter. It's been coming in recently, but how would -- how do you see say your average earnings potential in the third quarter being compared to the second? You're seeing improvement or may be more flattish?
Joseph Royce
Yes I do. In fact sitting here looking towards the end of the year, I feel much better than obviously in January looking towards the first six months of the year.
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