Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Omar Nokta - Dahlman Rose & Company.
Omar Nokta - Dahlman Rose & Company
So I noticed a obviously like you are saying in the call there is an improvement in your overall day rate and it seems to, I think 2Q is better than 1Q and now 3Q is better than 2Q. Are you still seeing that trend develop into the fourth quarter thus far?
Joseph Royce
Yes, we actually on our bulk side very much so on our bulk carriers, especially those ships that are trading in the Atlantic, I think what’s more positive sign is the fact that we are seeing more of the general cargo steel process and project cargo coming to the scene, and this is a big part of what’s been missing for the last couple of quarters.
We think this is a positive sign for our 2010, and this will put the company, especially our multipurpose tweendeckers back in what we call sync. We will be able to have more schedules, more positive schedules, there will be less disruptions, there will less balancing and there will be less ships out of position and we see this continuing to grow through 2010.
Omar Nokta - Dahlman Rose & Company
Okay, and this new strength that’s coming into the market, is it really coming from China or are there any specific routes that you are seeing the most opportunity.
Joseph Royce
Well on the bulk side, pretty much outside of the Pacific and the Atlantic trades is across the board. But what we are seeing is, in the steel sector certainly more steel exports especially out of Brazil.
I think that from what we have been told talking to our different clients, as well as being at the ILAFA Steel Conference a couple of weeks ago, this is the big Latin American conference that was held in Quito, Ecuador, is that the steel industry, especially the Brazilians feel very confident in 2010 between their internal market and their export market, and just to give you a side example of how this really did effect and knock our schedules pretty much out of sync.
The way that the Brazilians were accepting orders for steel from their customers was that they would accept the order and produce it and ship it all on the same month, while historically, they would accept the order on one month, produce it on a second month and ship it on a third month and of course this worked then and it also worked for us in having a smooth schedule well into the future.
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