Yes. Good morning and welcome to the Q3 Presentation of Wallenius Wilhelmsen. I'm sorry I put on the Johnny Cash voice this morning but it hopefully it would hold. Also welcome to you on stream. Together with me today we'll have Torbjørn presenting the numbers, and we will have a Q&A together at the end as we always do. We follow the same sequence. We will have a presentation, and then we will have questions both from the room and from the stream. Let me then briefly start with the highlights of this quarter. I'm very happy to say that this is the best quarter on record for Wallenius Wilhelmsen. Both in terms of revenues and EBITDA, we have a very strong performance.
Torbjørn will tell you in detail what it is. I'm very happy to see that we are improving in all our segments. We have solid rate developments. There are some periodization effects from fuel that you will see, but in general, we can say that we are totally sold out in shipping. This brings us to a very solid financial position, and we today have a net debt to EBITDA of 2.3. On the organizational side, I'm very happy to share that Wenche Agerup will start as the Chief People Officer on November 21, and we actually have Wenche in the room. Wenche, if you could show.
We also just announced that Xavier Leroi, who have been in the company for a while, yesterday took over as the COO of Shipping. Shipping is, of course, a very important business area for us and he will be based out of Seoul, as of January 1 next year. We also announced that we now have no remaining provisions for the antitrust case, as we have concluded the last known settlement with customers. With this, we can finally put the antitrust case behind us as an organization. We are still fighting class action claims in Canada and the U.K., but we consider this to have no merit, and we have made no provisions for them.
I think it's fair to say that this has been a very challenging case for this organization. It was against the law, it was unacceptable, and it was also a breach of our own rules and procedures. The provisions and settlements have been reported according to the case developments, and in total, this case have costed us close to $900 million. I'm very pleased to see that we have moved on with all customers. We have made new contracts with all customers, and I consider us today to have very strong relationships with all our customers in our business. Just to be very clear, compliance is my responsibility. It's ultimately the CEO's responsibility to ensure that we are in compliance in this company.
Measures have been taken since 2012 to build compliance, both in terms of compliance framework in this organization and compliance culture. I can assure you that I will do all I can to make sure that this will never happen again in Wallenius Wilhelmsen. Then we're moving into the presentation, and the agenda is as it always is. We're starting with a little update on the market. Then I will talk you through shipping and logistics, share a few perspectives on sustainability before Torbjørn talks about the numbers, and we will have a quick prospect in the end, and then a Q&A. Starting with the markets, we see growth in all our segments and the light vehicle sales are growing. Here you have the numbers quarter on quarter.
In total, the light vehicle sales in the world grew 10% from Q2 to Q3, and the seagoing volumes grew about 6%. We are expecting this year that the total sales in the world will be around 80 million cars. The strongest growth we see in China, but in general, we are now seeing that the supply chain issues in particular semiconductors is easing, meaning that the volumes are picking up. Next year, we expect that the world sales will grow somewhat and best estimate we have today is 83 million cars. There is, of course, a macroeconomic environment that will affect also the light vehicle sales, and the forecast for next year has been somewhat adjusted down recently due to some demand destruction.
The general economic situation will also hit the car sales of the world. We have then to remember that we are now already at a very low level. If you look on the graph to the right, before COVID, we saw there was sold around 95 million cars in the world. We are now at 80, and there is a significant pent-up demand for cars in the world. Also car sale will be affected by the macroeconomic environment, but we believe less than most other segments. Around 30% of our transport is on high and heavy and breakbulk. In high and heavy, which are big machineries, I'll come bit back to it, we are mainly in three segments. We are serving the construction segment, the mining segment, and agriculture.
In all of these, we have seen significant growth. These numbers, mind you, are year-on-year. Because of seasonality in this, it makes more sense to compare with same quarter last year. Sales volumes are up quite significantly. This will be an all-time high in world sales of high and heavy equipment, and we expect that to develop next year. Although the sales numbers up here will develop into the next year, we think there will be a moderate volume growth into next year, as this is more representing increases in prices. Why are we expecting a moderate or more flattish market on high and heavy next year? Well obviously, the construction industry around the world has slowed down.
There is a pent-up demand for machinery, but still, there is slowing down in construction. Commodity prices have been falling recently, and obviously, that will affect the CapEx interest at miners. On agricultural side, we see some of the same effects, but the demand seems to be more robust in that area. In general, on high and heavy, we have seen all-time high volumes in Q3, and we expect them to stay at or very close to all-time high values, numbers also in the short to medium term. On the fleet, the fleet is basically sold out. If you ask our Analyst, Erik Nøklebye, sitting back here, he would say that we are at 100% capacity, around 85%-90% utilization. We are now at 96% utilization, meaning that we're totally sold out and that has also resulted in congestion.
I will come back to that. There has been quite some ordering activity. Today, there is 94 vessels on order. This represents some, around 60% of the fleet. These vessels are, to a large extent, to be delivered in 2024, 2025, and onwards. I think there's only 11 vessels due for delivery in 2023. The new vessels coming into the market, we will see the effect in 2024 and onwards. That was a few words about the market. Let's move into our performance, starting with shipping. We had a very strong quarter in shipping.
Starting with volumes, on the green bars, as you can see, that has grown quarter-over-quarter with around 3%, meaning that we are able to to fill up the vessels and trade them a bit more efficient than in the last quarter. One of the reasons why the rates are up quarter-over-quarter is that we have been able to trade more out of Asia into Europe and into North America, and that is our best-paying trade. You can see that the volumes are growing in these two trades, while they are somewhat down in other trades. This will vary a bit between quarters, but in general, this is a profile that we like to see.
The rates are up with close to $1.5 per CBM, despite the fact that we are carrying a little bit less of the well-paying high and heavy and breakbulk cargos. This has been a very strong performance on shipping in terms of both volumes and rates, and we now start to see the effect of the new rates coming into our book of business. As we have said before, we are now systematically working on getting all rates back to sustainable levels with our customers. Our fleet is more or less stable. We are down to 126 vessels. The owned fleet is up by one. We declared a purchase option in the quarter. We have added three vessels on the long-term fleet.
Those were deals done in a very different market than today, but they were added to the fleet in the third quarter. On the short-term fleet, that has been reduced. We are very careful in this market to put on expensive and long commitments when it comes to tonnage. Our biggest concern and problem now is the port congestion and that's the green numbers. These are the number of waiting days we had in our fleet in Q3. This represents about 10%, 11% of our capacity. The most important job we do now, and we have set down a task force working with that and we already see some results, is to make sure that we are able to reduce congestion or waiting time in ports, so that we can free up the vessel capacity that we already have.
We have earlier announced that we plan to come back on fleet strategy this year. We have now decided to take a little step back and a little pause, both due to the current newbuilding prices, the uncertainty of technology, but also now with this economic environment. We have said that we would likely come back on a fleet strategy next year. Having said that, we are still working on our next generation of vessels. We are still very committed on delivering on our journey to zero emissions. But most likely, we will come back in full on the fleet strategy next year. At the end of the shipping, I like to share a little anecdote. We have our first female captain in our fleet this quarter, Captain Lee, s he is Korean.
I think she is the third Korean to be a captain on a vessel. She has done all her education and done her development with us. We truly consider, and I believe that, diversity is a competitive advantage, and we will continue to drive diversity in Wallenius Wilhelmsen. Moving on to logistics, I think this is our little well-kept secret. I think all of you know that we're heavy in shipping, but actually the majority of our people work in logistics. What is logistics? This picture gives you a pretty good idea. This is our Zeebrugge terminal, and here you can see all of Wallenius Wilhelmsen at play. You have the vessels coming in. Just next to the vessel, you can see what we call breakbulk.
In this case, I think there are small boats and yachts that we carry. Next to that, you see high and heavy equipment. These are excavators and they are agricultural machines and all the way at the far end, you can see cars. You can also see some buildings here, and the one all the way at the back, that's a fumigation center, meaning that when we are sending cars and equipment to Australia in this season, we need to make sure they don't have any bugs. Not electronic bugs, but physical bugs. Basically what we do is that we heat up the cars or the equipment so that the bugs do not survive. There's also another element here and that's the gray building at the front t hat is a processing center.
I want to take you into that processing center now because I was there just a few weeks ago. This is a processing center for Doosan. Doosan is a big producer of equipment from Korea. In this case, we are working on their excavators. Simply told, you can see in the middle picture, these excavators, they come just with a basic package. When somebody at the construction site would like to have, you know, longer arms or bigger grabs or more lights or a nicer camera, we do that. On this very picture, I'm actually mounting a new light on this excavator but we are putting on both the boom and the arm and the grab and all of these things so that they are tailored into the European market.
We are actually adding a certain percentage of value to the product that we have taken from Korea into Zeebrugge. We put on the equipment and we make sure we bring it out to the construction site where it sits t hat's logistics in a nutshell. I'm very happy to see that logistics also are improving this quarter. In general, revenues are up 11% quarter-on-quarter, and that is driven by two main factors. One is that the volumes are coming back, as we said, that the semiconductor challenges are reducing and they are able to produce more cars. There's also another effect and that is that when they have limited capacity on cars, they are trying to sell models with as much accessories as possible, meaning that there's a high level of accessories on the cars and we do that.
When we're sitting at the end of the factory line of Nissan in North America, the car comes out as a standard car and everything below, let's say, line three on your accessories list, we do. We put it on, t hat's one of the reasons why the revenues are also increasing quarter on quarter. On the terminal side, it's rather stable but there's a little improvement in Australia because we see Chinese volumes coming back after the COVID shutdown earlier in the year in China. Then on inland revenues, that is on the back of somewhat increasing car production in the U.S.. As I said, all in all, in logistics, we are improving in all parts of our business, and we still think there is significant upside.
If you look on the world, the sales and production of cars in North America and in Europe, last quarter, we were 20-25% below where we were prior to COVID. In a normalized market, we believe that we will get back to much higher activity in this business. Now, the main concern is not really demand from our customers but labor. In particular in the U.S., labor is a challenge. Just as an anecdote, in the U.S. today, there are two open positions for every one job seeker. It's a very tight market and that's really the core of our activity there now, is to get access to enough labor so we can serve our customers. Quickly on sustainability.
Safety is our priority number one and we will never be happy on safety. We are doing okay on shipping. We are well within the targets we have on lost time incident frequencies. I'm very happy to say that in the last quarter, we had no medium or serious incidents in our fleet. Due to the fact that we are onboarding a lot of new people into logistics, we have seen a small increase in the lost time incident frequency, t hese are mostly related to smaller. I wouldn't even say incidents, but back pains and other things that makes people go home early or come in late.
They are minor things but still, we are working systematically to improve and we have a lot of measures in place to drive the safety performance also in logistics. When it comes to CO2, we had a slight increase in the absolute emissions in the last quarter. That's driven by a little bit by speed, but also by congestion, or vessels are sitting there without moving and that means that we are producing more CO2 to the atmosphere. The good news is though that we are moving more cargo. The cargo, the carbon intensity, in other words, how much emissions do we have per unit we transport, is going down t hat's really for us, the key measure. On the carbon footprint, we see that all the parts of our sustainability framework, both people, planet, and prosperity, comes together.
I want to close with one example that we announced earlier this year. We believe we are the first one in the world to introduce artificial intelligence on board our vessels. Now we're introducing technology that helps the masters and the shore personnel to optimize the speed, the routing, and the voyage planning of a vessel. We think there could be as much as 7%-10% fuel improvement on this. On the trials, we have seen 7% delivered. We have done this now on 65 vessels and we will roll it out for the full fleet, and this is a complete new way of thinking of optimizing the vessels.
It sounds easy to put some AI on board a vessel, but I can assure you, if you've been a captain on a vessel for 20 years and suddenly the machine tells you what to do, there is a change process associated with this. We're working on that. With that, I leave it over to you Torbjørn.
Thank you. I thought the Johnny Cash voice worked quite well. Now I will continue as an aging version of Marcus & Martinus. Very happy to stand here today and present a very strong set of results for Wallenius Wilhelmsen. We're very proud of the results delivered this year. If we start with the financial highlights, as you can see, the total revenues increased to slightly shy of $1.4 billion, or 14% up quarter-on-quarter. The adjusted EBITDA ended at $434 million, which is up 42% quarter-on-quarter and almost double year-over-year.
As a result of the strong performance, net profit ended up at $246 million, and with that, we saw a strong increase in the cash position and hence a reduction in the net debt. Given the results, we ended up with a strong set of key financial metrics, including the return on capital employed coming in just under 12%. We had an equity ratio of some 39% and a net debt to adjusted EBITDA of 2.3, which is a very nice number considering the fact that when I started, in the first quarter I presented here, I think that number was 6.4. Very happy to see that at these levels.
As Lasse pointed out, in this quarter, we produced strong results across all segments, and that is of course something we're really proud to acknowledge. If we start with the shipping, they recorded a record quarter, up some $99 million, 35% quarter-over-quarter. Fuel surcharges increased by $75 million, whereas the fuel expenses increased by $26 million and I will come back to that on a later slide. The net freight increased by $51 million, driven by both volumes as well as an improvement in rates. Same picture, year-over-year, we were up 94% and again, this is on a very strong market, driving a rebound in the rates.
Logistics, which you've known, has had some challenging times given the semiconductor issues, saw a positive margin development and was up $12 million or 62% quarter-over-quarter. This was driven by auto and high and heavy volumes, fumigation seasonality. As Lasse mentioned, we have the stink bug season, which means that we're gonna see increased revenues from that side, as well as we also saw lower fuel cost within the inland transportation business. Year-over-year, again, very positive on strong volumes and revenues in high and heavy U.S. and Australia and increased volumes in our terminals.
We also saw that Government Services delivered a strong set of results, almost tripling the EBITDA that we saw in the previous quarter, and this is driven by increased U.S. flag military and civilian cargo as the United States and NATO respond to the Russian invasion of the Ukraine. Looking at the overall revenue bridge, if we start off with the revenues, they increased by $166 million quarter-over-quarter, $51 million came from shipping volumes and higher revenue per CBM on the trade mix. We had $75 million in fuel surcharges due to the significant increase we saw in the fuel prices in the previous period and the fall into this period, and I will come back to that on the next slide.
We also saw a net $40 million increase in revenues in both the logistics and government services side and this was partially offset by a negative change in the TC Out revenues. The adjusted EBITDA was significantly up $129 million quarter-over-quarter. In broad numbers, roughly 75% of this increase comes from the shipping side, whereas 25% comes from logistics and government services. There was a $49 million reduction in net fuel cost, given that we had a $75 million increase in surcharges and a $25 million increase in cost. The cargo voyage costs increased $5 million and this is just linked to the fact that we have higher volumes.
We had a stable vessel OpEx quarter over quarter, and we did see a reduction in charter expenses because the increase we've seen in charter rates was offset by reduced short-term charter activity. Turning to the positive net fuel surcharge effect that we saw in Q3. When we say net fuel surcharge effect and let's just call it NFS so I don't have to say it so many times, this is essentially the change in fuel surcharge revenues less the change in fuel cost. This effect will be, you know, will lag in periods where you see increasing fuel prices because then call it the additional fuel surcharge revenues we receive will come later.
What we saw from the second quarter into the third quarter was that the average VLSFO prices fell by some 16%, so we had a declining fuel price, but we had fuel prices in our contracts that reflected the higher prices in the previous quarter. As we have said on many occasions, there will always be a lag effect, and within Wallenius Wilhelmsen, we see that the lag effect is some three to five months, so that the fuel surcharge follow the fuel cost themselves. Now, of course, to sort of quote my old economics professor, there are many things that will affect the fuel surcharge revenues.
Of course, if you do not transport full or have full ships, clearly that will impact it because if you're running a half-full ship, clearly you would not get as much fuel surcharge revenues. It will be impacted by the trade, the customer and the cargo mix. It will be impacted by the fuel inventory because sometimes we sort of fill the tank up and have inventory in the vessels that will last for quite a number of days. Then, of course, there's also the contract reference fuel price within the customer contracts themselves. Over time, we see that the fuel surcharge covers the change in fuel costs on a one-to-one basis.
As you can see from the green chart, the green bars on the left side of the slide, you know, in this particular quarter, the effect was substantial given that, you know, we've been trending up and suddenly there was a fairly significant decline in the fuel prices themselves. Turning to cash, as mentioned in the introduction, we had strong cash generation within the business. The total cash increased by $242 million to just over $1 billion and this was driven mainly by the strong EBITDA, but also proceeds from the recent refinancing. Given the increase in revenues, there has also been an increase in working capital.
Please note that the working capital amount of -$94 million also includes payments of civil claims and customer settlements within the quarter. We had limited investment cash flow in the quarter and the amount you see there is mainly related to vessel maintenance, smaller investments in terminals, processing centers, and some intangible assets. We had a positive net debt change due to the $160 million in net proceeds from refinancing the flagship that we announced the previous quarter, countered by scheduled debt and lease servicing payments. The undrawn credit facilities increased to $377 million and this includes the increase from the recent refinancing and these are of course available for general corporate purposes as well as new build investments.
Turning to the balance sheet, you know, our balance sheet and liquidity position strengthened in the third quarter. We're well positioned to deliver on dividend policy as well as reinvest in the business. We also have a buffer against any unforeseen economic events. The total assets increased to $8.4 billion and the equity increased to $3.25 billion. In the fourth quarter, we have some remaining bond maturities of $76 million in total, which are covered with proceeds from the bond issue we did in April. The next bond maturity will now be in September 2024. Other Q4 payments include the remaining installment of the dividends of $25 million, as well as $32 million of remaining antitrust liabilities, which Lasse covered in his introduction.
After this, we expect no further payments related to the antitrust case, so we're very happy to be able to put that one in the rearview mirror. When we look at the maturity profile, going forward, we have manageable 2023 lease and bank maturities to be refinanced over the next 12 months and we are in good dialogue with our financing partners on this. With that, concludes my financial presentation and I'm now very happy to hand it back to Lasse.
Thank you. All right, let me round it off before the Q&A with a short view on how we see the future. The short story is that we believe 2023 will be a favorable market condition for us. We expect that the light vehicle sales will increase somewhat, even though we see a macroeconomic development which is less positive around us. There is a big pent-up demand and we're already coming from very low levels. Even if we will see a less favorable development in light vehicle sales, there is very, very tight capacity in the shipping part of our business. There are still quite some buffer before we will see reduced volumes.
What we also expect is that the high and heavy will plateau or maybe weaken somewhat from the high levels we see now, but they will still be on historical high levels. Of course, there are significant risks going forward. The two major one that we would like to point out today is of course the if we see an even deeper macroeconomic recession than what we expect today. Also, as I said on the logistics, the access to labor and the cost of labor is a risk to our company. In general, we believe the outlooks are strong for Wallenius Wilhelmsen and we expect to strengthen our financial position in the quarters to come. That was the end of the presentation and then we're open for any questions.
We can do questions in the room to start and then I will do questions via the webcast afterwards. Anette and Indre will be helping you with speakers.
We have one at the back.
Hi there. Could you talk a bit about how lagging your cohorts are to the general freight levels in the market? Can we see increase in freight rates going further despite flat development in rates?
Yeah, we are, I mean, in general, we are turning roughly a third of our book of business every year. Next year we are looking at some 30% that we will renew. On that rate, we're renewing contracts all the time. We see this year that we have a significant effect of the rate increases already. Roughly, 30% will be renewed next year.
You basically have some cushion despite even if the market were to soften a bit into next year on the volume side, yeah?
In terms of rates, yes. We are now back at more sustainable rates in our book of business. Of course the other factor which is as important are the volumes. We expect the rates to stay at this level and maybe increase. The volumes we believe will be as strong in the next quarters as this one.
Perfect, t hanks.
Maybe a bit technical on the fuel surcharge but you seem to indicate in report that the fuel surcharge will be going down in subsequent quarters. If there's a lag of three to five months, shouldn't the fuel surcharge in Q4 go up, shouldn't it?
I don't think we should speculate on what happens in Q4.
No.
As Torbjørn said, over time this will even out.
Sure.
The reason why we brought it in today is that there is a particularly high effect in Q3 but maybe we'll add to it, Torbjørn.
Yeah. No, I think that's a fair summary. Again, it will vary because there are many other factors that will impact the fuel surcharges as pointed out on the particular slide. I'm not going to speculate on fuel prices. If I was, I'd probably be a very rich man if I knew how they would develop. In general, you know, we do see a three to five month lag on fuel surcharges versus fuel costs and I think we'll just leave it at that.
Nothing in the audience. Do you have anything from the cast?
It is pretty quiet here so far, but I've received two questions, the first one coming from Frederik Ness in SEB. He's asking and I guess this goes to you, Lasse, you're saying about 10% of your fleet is tied up in congestion today. What do you consider normal congestion and when do you expect the current level to normalize?
Well, a normal level would be what we saw prior to COVID and that would be somewhat 90% less than what we have today. We have a significant but we will always have some congestion. This is mostly related to Europe. The three main ports are Bremerhaven, Zeebrugge, and Southampton, and we have a dedicated effort to reduce it. We already see some results in Zeebrugge, and we have new arrangements in Bremerhaven that will improve the situation. Our target is to drive this significantly down over the next few quarters.
Very good. The second question is from Petter Haugen in ABG, and he's asking, "How should we think about dividends for 2022?" I don't know who of you would like to address that one.
I can start.
Yeah
You can find the money afterwards.
Okay.
We have a dividend policy of 30%-50% of net profit. We will deliver on that. The actual dividend will be decided on the general assembly next year.
Very good. A couple more questions are coming in, one very technical one on CII coming from Pål Halvorssen. How many vessels will be rated D or E? What is your toolbox to keep the vessels at C or better levels, and what are the associated costs of these tools?
Yeah, that was quite a comprehensive question. I'll try to answer some of it. Basically, for those who don't know, CII are new regulations coming into the industry that puts requirements to the emission efficiency of the vessels. Associated with that, you have a scale A to E. You should stay at C or better. If you are falling below C, you have one year to get back up to C from a D or an E. We see that we will have some vessels coming down at D next year t hat's what we expect. We will work hard to get them back up to C. On some of these, there is a limit to how much more we can do on the technical side.
Then the last point of measure would be to use zero-emission or carbon-neutral fuels, being biofuels, and we are looking into all of these. We are both working with operational measures, you saw the AI. We are investing into technology on the vessels to improve the energy efficiency, and eventually, we are also looking into using biofuels.
One more question in the room if we can add that.
Yep.
You have said previously that you would come with an update on fleet renewal.
Yep
in the course of the year. Are you still expecting or intending to come with such an update?
No, as I said in the presentation, we are putting a little pause on that process now. We're still working on the next generation of vessels. We are in active dialogues with both yards and others. But we expect that the fleet strategy will be a 2023 announcement, not this year.
We have received a question from Frode Mørkedal. Can you provide an update on congestion? I guess we did in the slide relating to fleet, congestion and waiting times, as well as whether you think there is a potential to increase the global fleet's efficiency next year.
Yeah. Well as I said, on congestion, we are working hard at it. We are seeing 10%-11% of our fleet congested. I don't have the numbers for the others, but I would assume they are seeing similar numbers. And I would also assume that they are, as we, working systematically to drive it down. Yes, I would expect congestion to be less next year b ut that's really hard to predict, of course.
A couple of questions from Ola Storberg. Is your contract renewals next year evenly spread out through the year?
He caught me naked. I don't know. I'm sure it is. It's more or less, yes. I don't know the exact numbers, to be honest.
The second question: How important is the China EV business to Wallenius Wilhelmsen?
Today, it's an increasing importance, but still, in absolute numbers, not very big yet. We have a very big business out of Korea, with Hyundai and Kia. We are also serving Japan, and increasing it now out of China on electric vehicles, on the shipping side. On the, let's say, business development side and on the logistics side, it's a very important area for us. In all our businesses, from our terminals to our processing centers and our vessels, we are now putting ourselves in a position so that we can be a preferred choice when it comes to EVs. So for instance, now in Belgium, you saw this terminal up here.
On the other side, we are now building our Zeebrugge terminal, which will be more or less a dedicated terminal for EVs, with services including charging, that will be, you know, offered to some few customers that we are in dialogue with. When it comes to the Chinese volumes, they are growing extremely fast. In terms of the total market, they are still not very significant.
Maybe it's worth adding that, the Chinese EVs, I don't know if there's volume here, but the Chinese EVs also offers us the opportunity to sell a wider suite of services, so not just, let's say, a shipping leg, but also. You call it the end-to-end service because you have new entrants, which do not have an established supply chain themselves, and here we can offer the whole suite of services as we did with NIO, as an example.
Yeah, a bsolutely. That's the good news. These new players, they trust on us as their logistics partner. We basically run the show from A to Z.
We have one more question from the web, a final one so far. That's from Petter Haugen as well. He is asking: Could you elaborate on the newbuilding strategy in light of alternatives such as charter in ships for threeto five years?
Yeah. As I said in the presentation, we are careful in adding tonnage in this market at the price levels we see. That does not mean that it's out of the question to renew some ships, but we are very careful t hat's out of two reasons. One is that it's a very expensive charter market, but also because we have a very clear dedication on driving this industry towards zero. The vessels we can get on TC are traditional technology and that's why we work extensively also with our next generation of vessels. We will not order vessels that cannot take us to zero.
That seems to be it from the online audiences. Are there any further questions in the room?
Doesn't look like it. Seems that we're done. Okay. Let me close with saying thank you for joining us and we are very happy and proud to be able to deliver strong results. We are very happy that we can put the antitrust case behind us, and things look good for Wallenius Wilhelmsen. Thank you.