Thank you for joining us for Navios Maritime Partners third quarter 2022 earnings conference call. With us today from the company are Chairwoman and CEO, Ms. Angeliki Frangou, Chief Operating Officer, Mr. Stratos Desypris, Chief Financial Officer, Ms. Erifili Tsironi, and Vice Chairman, Mr. Ted Petrone. As a reminder, this conference call is being webcast. To access the webcast, please go to the investor section of Navios Partners website at www.navios-mlp.com. You'll see the webcasting link in the middle of the page, and a copy of the presentation referenced in today's earnings conference call will also be found there. Now I will review the safe harbor statement. This conference call could contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Navios Partners. Forward-looking statements are statements that are not historical facts.
Such forward-looking statements are based upon the current beliefs and expectations of Navios Partners Management, and are subject to risks and uncertainties which could cause actual results to differ materially from the forward-looking statements. Such risks are more fully discussed in Navios Partners' filing with the Securities and Exchange Commission. The information set forth herein should be understood in light of such risks. Navios Partners does not assume any obligation to update the information contained in this conference call. The agenda for today's call is as follows. First, Ms. Frangou will offer opening remarks. Next, Mr. Desypris will give an overview of Navios Partners segment data. Next, Ms. Tsironi will give an overview of Navios Partners financial results. Then Mr. Petrone will provide an operational update and an industry overview. Lastly, we'll open the call to take questions.
Now I turn the call over to Navios Partners Chairwoman and CEO, Ms. Angeliki Frangou. Angeliki.
Thank you, Daniela, and good morning to all of you joining us on today's call. We are pleased to report our results for the third quarter of 2022, in which we recorded $322.4 million of revenue and $257.2 million of net income. Net income amounts to $8.36 per unit. We are caught in the crossroads of unprecedented macro events. First, in terms of the general economic environment, central banks are reducing the existing liquidity in the financial system as they return to normalized balance sheets. At the same time, central banks are increasing interest rates to combat rising and enduring inflation. Second, China, the major consumer of raw materials and producer of finished goods to much of the world, has reduced appetite as it experiences slower economic growth and focuses on zero-COVID policies.
Finally, the conflict in Ukraine has disturbed normal trading patterns for oil and gas, while also creating a scarcity of grains and mineral commodities. In the face of these challenges, our diversified approach has served our stakeholders well. We have about 16 different vessel types operating in three segments. The average age of our vessels in each segment is below the industry average. In the container sector, we were able to take advantage of the market strength by selling two 16-year-old container ships for $220 million. Given the appetite for container ships, we were able to order new vessels and hedging the ownership risk by chartering them out for long period, ensuring a reasonable return on the investment.
We also used our balance sheet strength to enter in the new tanker class, the Aframax, because other tanker companies at the time were constrained by their legacy balance sheet issues. Today, we have six on order, of which we have long-term charters on four of them. We continue to monitor events closely, managing our risk as well as seeking new opportunity. Slide 6 takes a look at selected segment data. Today, we have 185 vessels with an average age of 9.5 years. Each segment has an average fleet age materially below the industry average. You can see the good work that we have done by developing our contracted revenue. In the third quarter alone, we generated $331 million of long-term contracted revenue from our various sectors. Turning to slide seven, we review recent developments.
Our LTV has ticked up primarily because of compression of container ship values. However, this is mitigated by the $3.2 billion of contracted revenue, of which $2.3 billion is from the container ships. I also would like to focus on our breakeven for the fourth quarter of 2022 and fiscal year 2023. You can see that we have $51.2 million contracted revenue in excess of total cash expense for the fourth quarter of 2022. Any revenue from our 4,000 open and indexed days will be profitable. We also have a very low breakeven per open day for 2023. As on November 3, 2022, our breakeven per open day was slightly less than $6,000. Slide eight reviews our balancing initiatives.
In the face of rising interest rates, we have been working to mitigate interest rate risk. 30% of our debt has fixed interest rates with an average rate of about 5.8%, and 70% balance has floating interest rates. We have been actively working to reduce our average margin on our floating rate debt. So far, we have been able to reduce this margin by about 10% to 2.8% in 2022, as compared to 3.1% in 2021. We have done even better in our new building program, where the average margin is slightly less than 2%. We have a $1.1 billion debt program to finance our new buildings. $740 million has either been approved or is in the process of approval.
We are in a serious discussion on the remaining $340 million. We have been able to secure favorable terms on our new building program. 60% of the purchase price must be paid only on delivery. In addition, $500 million of the new building debt has no commitment fee. At this point, I would like to turn the call over to Mr. Stratos Desypris. Stratos?
Thank you, Angeliki, and good morning, all. Slide 9 details our strong operating free cash flow potential for the fourth quarter of 2022. We fixed 73.3% of available days at an average rate of $25,331 net per day. For Q4 2022, contracted revenue already exceeds total cash expense by over $51 million. We have 4,022 available days that will provide additional profitability once fixed. For 2023, we have 60,591 available days. Approximately 65% of these are days with market exposure. Slide 10 demonstrates the basic principles of our diversified platform in action. We benefit from counter-cyclicality, which creates the opportunity to redeploy cash flow earned from well-performing segments into activities in underperforming segments.
Asset values can be volatile, and a diversified asset base moves the balance in volatility. We can see this dynamic in our asset base. As of Q3 2022, container values dropped by 42% and dry bulk dropped by 4%, while tanker vessel values increased by 32%. In sum, the net change to our fleet value is a decrease of approximately 14%. In addition, multiple segments allows us to optimize patterning. In segments with attractive returns, we can enter into period charters. In other segments, we can be patient. As you can see from the chart on the bottom, the container segment was enjoying historically high charter rates. Not surprisingly, we fixed our container fleet on long-term charters with almost 90% of our available container ship days fixed for 2023. This reduced market and residual risk.
We manage the credit risk of the long-term charters independently to ensure we are not simply trading one risk for another. In our tanker segment, current charter rates are surpassing their 20-year average levels. We increased peaks in available tanker days to almost 40% for 2023, taking advantage of this market. We expect our tanker fleet will generate strong returns. Lastly, in our dry bulk segments, rates are below their historical averages, so we remain patient by entering short-term charters, thereby fixing only 9% of available days. Over 90% of available days are exposed to market rates, which will be fixed long-term as the market recovers. In slide 11, you can see our fleet renewal activities. We are always renewing the fleet so that we maintain a young profile benefiting from newer technologies and more carbon efficient vessels.
Navios Partners has made $1.5 billion investment in 23 newbuilding vessels that will be delivered to our fleet through 2025. In containerships, we are acquiring 12 vessels for a total of $860 million. We hedged our investment by entering into long-term credit-worthy charters, generating about $1.1 billion in contracted revenue for the 6.4 years average duration of the related charters. In the tanker space, we entered the LR2 Aframax sub-sector by ordering six vessels for a total price of $380 million. Four of the vessels are chartered out for five years at an average net daily rate of $25,971, generating revenues of approximately $190 million. The charterer has the option to charter the other two vessels. Slide 12 gives an update of our fleet activities.
Starting with tankers, during Q3, we agreed to acquire 2 LR2 Aframax vessels for $60 and a half million per vessel, plus $4.2 million in additional features. We have given the option to an investment-grade counterparty to charter the vessels for five years at a net rate of 27,798 dollars per day, plus additional five one-year options at increased rates. The option is declarable in Q4 2022. We also contracted two of the LR2 Aframax vessels for five years at a net daily rate of $25,576 , generating almost $95 million in contracted revenue. We also capitalized on the strength of the tanker market, chartering 8 product tankers for an average net daily rate of 24,045 dollars and an average duration of 1.8 years, providing contracted revenue of $125 million.
On the containerships, in Q3, we completed the sale of two 8,200-TEU containerships for $220 million. Also, we fixed our only remaining open vessel for 2022 for six months at a net daily rate of $22,195. Finally, on the dry bulk vessels, we acquired 38 vessels, including a newbuilding Capesize vessel, while at the same time, we sold four vessels with an average age of 16 years for $52 million. On the chartering front, we created $112.6 million contracted revenue by chartering three of our Capesize newbuilding vessels for five years at an average net daily rate of $20,567. Moving to slide 13, we continue to secure long-term employment for our fleet. Our contracted revenue amounts to $3.2 billion.
72% of our contracted revenue comes from our container ships, with charters extending through 2036 with a diverse group of quality counterparties. Almost 50% of this contracted revenue will be earned in the next 2.5 years. I now pass the call to Erifili Tsironi, our CFO, which will take you through the financial highlights. Erifili?
Thank you, Stratos, and good morning, all. I will briefly review our unaudited financial results for the third quarter and nine months ended September 30, 2022. The financial information is included in the press release and is summarized in the slide presentation available on the company's website. I would like to highlight that the 2022 results are not comparable to 2021 as in 2021, NMM acquired two companies and recently 36 vessels, significantly expanding its fleet. Moving to the earnings highlights in slide 14, total revenue for the third quarter of 2022 increased by 41% to $322.4 million, compared to $228 million for the same period in 2021.
Time charter revenue is understated because of a $13.6 million adjustment required for accounting purposes due to the straight line effect of container ship charters with de-escalating rates. The overall revenue increase results from a 43% increase in available days to $ 12,897, compared to $ 9,027 for the same quarter last year. Our time charter equivalent rate decreased by 3% to $23,781 per day, compared to $24,447 per day for the same period in 2021. In terms of sector performance, both containers and tankers enjoyed rates that increased 45% period-over-period to $32,600 for containers and $21,828 for tankers. In contrast, our dry bulk fleet rates were 31% lower at $20,061.
EBITDA for Q3 2022 increased by 81% to $321.4 million, compared to $177.2 million for the same period last year. Excluding one-off items as described in our press release, adjusted EBITDA increased by $32.5 million to $177.7 million. Net income for Q3 2022 increased by 59% to $257.2 million, compared to $162.1 million for the same period in 2021. Per unit net income was $8.36. Excluding one-off items as detailed in the press release, adjusted net income was $113.4 million compared to $130.1 million in 2021. Adjusted net income per unit was $3.7.
Total revenue for the first nine months of 2022 increased by 89% to $839.7 million, compared to $445 million for the same period in 2021. For the nine-month period ended September 30, 2022, revenue is understated because of a $30.1 million adjustment required for accounting purposes due to the straight line effect of container ship charters with de-escalating rates. The overall increase in revenue was a result of a 72% increase in available days to 35,394, compared to 20,521 for the same period in 2021, and an 8% increase in the fleet average TCE rate to $22,717 per day compared to $20,991 per day for the same period in 2021.
In terms of sector performance, PC rates increased 39% for containers to $30,486 and 18% for tankers to 17,834. Dry bulk rates were in line with 2021 rates for the same period at 21,381. EBITDA for the nine-month period ended September 30, 2022 increased by 43% to $611 million compared to $426.2 million for the same period last year. Excluding one-off items as described in our press release, adjusted EBITDA increased by $197.5 million to $467.3 million.
Net income for the 9-month period ended September 30, 2022 increased by 16% to $461 million, compared to $398.6 million for the same period last year. Net income per unit was $15. Excluding one-off items described in detail in the press release, adjusted net income amounts to $317.2 million compared to $242.3 million in 2021. Adjusted net income per unit was $10.31. Turning to slide 15, I will briefly discuss some key balance sheet data. As of September 30, 2022, cash and cash equivalents were $110.3 million. During the first 9 months of 2022, we paid $95.5 million pre-delivery installments under our new building program.
We also paid $380.4 million to acquire 36 second-hand and four newbuilding vessels. Finally, we sold two containers for $215.3 million net. During the period, we had $161 million scheduled repayments under our credit facilities. Long-term loans, including the current portion net of deferred fees, amounted to $1.9 billion. Net debt to book capitalization stood at 43.6%. Slide 16 highlights our debt profile. Our debt and, lease liabilities are 2.4 times covered by the value of our fleet based on publicly available valuations. We continue to diversify our funding resources between bank debt and leasing structures, while approximately 30% of our debt, including operating lease liabilities, have fixed interest rate at an average rate of 5.8%, providing a natural hedge against current rate increases.
Our maturity profile is targeted with no significant balloons due in any single year. Furthermore, we decreased the average margin on our drawn facilities to 2.8% from 3.1% at the end of 2021. The average margin for our newbuilding facilities is 1.9%. Slide 17 provides an update of our recent financing activities. In September 2022, we signed an $86.2 million credit facility with a European bank financing two containers for delivery in 2023 at SOFR + 2%, and we completed the bareboat agreement at an effective fixed rate of 5.5% for the financing of one newbuilding Capesize for delivery in 2023. In October, we concluded a $100 million leasing facility refinancing twelve containers at SOFR + 2.1%.
Currently, we are completing our first export credit agency facility for $161.6 million, financing four containers for delivery 2023 and 2024 at SOFR plus 1.7% and the financing of a 2016-built Kamsarmax at LIBOR plus 2%. We are progressing the financing of our new building program, and we have signed or are in the implementation phase for an aggregate amount of $480 million, representing approximately 44% of our financing requirements. Including the facilities under approval process, we are close to $740 million or two-thirds of our new building financing needs. Of this amount, $500 million represents financing arrangements with no commitment fees. Turning to slide 18, you can see our ESG initiatives. We aspire to have zero emissions by 2050.
In this process, we have been pioneering and are adopting certain environmental regulations up to three years in advance, aiming to be one of the first fleets to achieve full compliance. Navios is a socially conscious group whose core values include diversity, inclusion, and safety, with a very strong corporate governance and clear code of ethics. Our board is composed by majority independent directors and independent committees that oversee our management and operations. Slide 19 details our company highlights. Navios Partners is a leading U.S. publicly listed company. Our diversification strategy creates resiliency and enables us to mitigate individual segment volatility. Our diversification scale and financial strength should make NMM an attractive investment platform as we take advantage of global trade patterns. I now pass the call to Ted Petrone to take you through the industry section. Ted?
Thank you, Erie. Please turn to slide 21 for the review of the tanker industry. Tanker rates rose sharply in Q3, and rates today continue firm in all sizes for both crude and clean vessels. What has negatively affected the container industry has positively affected tankers. That is, consumer activity has switched from purchasing goods to increasing travel and services. About two-thirds of seaborne product trade is related to transportation. In spite of economic uncertainties in the Ukraine crisis, the IEA still projects a 2% increase in world oil demand for 2022. The expectation is that oil demand will grow by 1.7% in 2023 to 101.3 million barrels per day, exceeding 2019 pre-pandemic levels. Turning to slide 22.
Tanker rates continue across the board and have risen due to solid supply and demand fundamentals, combined with the invasion of Ukraine, which has redirected Russian crude and clean products to new and longer routes. Additional European refineries are replacing Russian crude and products with supply from the U.S. and Middle East Gulf, further increasing ton miles and trade inefficiencies. Incremental support for crude tanker rates should come into effect as new EU sanctions and a price cap begin on December fifth. Product tankers should also be aided by discounted Russian crude exported to the Far East, returning to the Atlantic as clean product. This could add upward pressure on already strong rates. 2023 crude and product ton mile growth is expected to increase by 5.3% and 9.5% respectively. Turn to slide 23.
VLCC net fleet growth is projected at 4.2% for 2022 and only 2% for 2023. This decline can be partially attributed to owners' hesitance to order expensive long-lived assets in light of macroeconomic uncertainty and engine technology concerns due to upcoming CO2 restrictions. The current order book is only 3.4% of the fleet, the lowest in 30 years. Vessels over 20 years of age are 10.3% of the total fleet, which compares very favorably with the low order book. Turning to slide 24. Product tanker net fleet growth is projected at 1.8% for 2022 and only 1.5% for 2023.
The current product tanker order book is 4.9% of the fleet, one of the lowest on record, and it compares favorably with the 7% of the fleet, which is 20 years of age or older. We believe that the overall tanker order book and fleet are well balanced as the IMO 2023 regulations will lead to some vessels' retirements in the coming months. In concluding the tanker sector review, tanker rates across the board continue at strong levels. The combination of low global inventories, oil demand returning to pre-pandemic levels, new longer trading routes for both crude and product, as well as the lowest order book in three decades should provide for healthy tanker earnings going forward. Please turn to slide 26.
Focusing on the container industry since topping out at 5,110 at the beginning of the year, the Shanghai Containerized Freight Index, SCFI, currently stands at just below 1,600, which has dramatically weakened on the back of uncertain macroeconomic conditions combined with consumer spending switching back to services over goods, which has led to decrease in container trade, easing port congestion and blank sailings. Tumbling rates have moderated recently, however, they remain above historical pre-COVID averages. As you will note in the graph on the lower right, the U.S. inventory sales ratio is off the recent low but still well below the long-term average. The graph on the lower left shows moderating purchases of goods, which has slowed import throughput, easing port throughput bottlenecks and port congestion.
Slowing US/EU goods imports have not been helped by China's zero-COVID policy, which has slowed some finished goods exports. Turn to slide 27. Net fleet growth is expected to be 3.7% for 2022 and 7.3% for 2023. The current order book stands at 28.8% against 9.9% of the fleet 20 years of age or older. About 71% of the order book is for 10,000 TEU vessels or larger. In concluding the container sector review, supply and demand fundamentals remain challenged due to economic uncertainty, a pullback in demand for consumables and easing supply chain bottlenecks. Please turn to slide 29 for the review of the dry bulk industry.
After a strong Q2, the BDI experienced a counter-seasonally soft Q3, averaging 1,655, ending below both the previous quarter and the same period last year. The BDI started Q3 at a high of 2,214. However, a combination of the cooling Chinese economy and weather-related export disruptions saw the BDI decline to a low of 965 on the last day of August, before strengthening in September due to increased exports from Australia, Brazil, and Guinea. Since then, the BDI is up approximately 45% to about 1,400 on the back of higher Capesize and Panamax earnings. Overall, supply and demand fundamentals remain intact as the macroeconomic environment continues to evolve and uncertainties remain. For 2023, the historical low order book and tightened GHG emissions regulations remain a positive factor. Please turn to slide 30.
Concerning coal, the Ukraine crisis continues to support increased global coal imports as European supply concerns persist. This has led European countries to reactivate coal-fired power plants. European seaborne coal imports are expected to increase by 17% in 2022 and a further 5% in 2023. Additionally, the EU ban on Russian coal will lead to shifting trading patterns toward longer haul routes. Overall, seaborne coal trade is expected to be flat in 2022, but supported by an estimated 1.7% growth in ton miles. On the grain side, global seaborne grain trade is expected to decrease by 2.4% in 2022, followed by a healthy increase of 4.2% in 2023. Global grain trade continues to be driven by heightened food security issues driven initially by the pandemic.
Currently, a severe drought in the northern hemisphere has reduced harvest and export estimates. The war in Ukraine is negatively affecting grain exports from the Black Sea. These issues are moderated by new trading patterns, resulting in an expected ton mile growth of 4.3% in 2023. With regard to iron ore, China's zero-COVID policy and real estate concerns significantly impacted steel production and iron ore demand through September 2022. Chinese seaborne imports decreased by 2% as steel production fell 3% through the same period. Expectations that COVID restrictions will be eased, along with increases in infrastructure spending should boost Chinese imports in 2023. Please turn to slide 31. The current order book stands at 6.9% of the fleet, one of the lowest on record.
Net fleet growth for 2022 is expected at 2.7% and only 0.5% in 2023, as owners remove tonnage that will be uneconomic when the IMO 2023 CO2 rules come into force. Vessels over 20 years of age are about 8% of the total fleet, which compares favorably with the historically low order book. In concluding our dry bulk sector review, continuing demand for natural resources, war and sanction related longer haul trades, combined with a slowing pace of new building deliveries, all support freight rates going forward. This concludes our presentation. I would now like to turn the call over to Angeliki for her final comments. Angeliki?
Thank you, Ted. This concludes our presentation, and we open the call to questions.
Thank you. At this time, if you would like to ask a question, please press the star and one on your touch tone phone. You may remove yourself from the queue at any time by pressing star two. Once again, that is star and one to ask a question. We will pause for a moment to allow questions to queue. Again, that's star one to ask a question. We'll take our first question from Omar Nokta with Jefferies.
Thank you. Hi there. Hey, guys. Good morning. Good afternoon.
Good morning. Good morning.
Morning. Yeah, just we've seen today your agreements to sell a handful of older dry bulkers. You're bringing in two younger ones. You've also added two more LR2 newbuildings. Given, I guess, your diversified platform, I guess we'll be seeing this a lot more frequently going forward. Just generally, you know, how do you see Navios now, especially with the platform you have today? You've got the strong earnings coming in from the tanker exposure, the solid cash flows from the containers. With secondhand prices coming under pressure here in the container market and then obviously some softness here in dry bulk, are there opportunities starting to develop where you could take advantage of this weakness?
Are you maybe taking a bit more of a wait and see approach in looking at the secondhand market?
Actually, Omar, this is a very good question. You see, you have seen that we already have done an acquisition. We have a fleet of vessels on the water both on the dry bulk. We have taken a position, which we show or that was quality vessels, Japanese vessels, and we have them in the water waiting for the opportunity whether with how China will develop, how the zero COVID restriction will be, and that will give us an opportunity on the spot market. Of course, we also have some new buildings that provide us a more efficient vessel. On the container fleet, on the container ship fleet, we see we have taken an approach of we sold earlier vessels, we contracted our fleet, and we sold at the appropriate time.
On the container ship, on the container sector, we have now positioned it in a situation where we enjoy cash flows. We have about $3 billion of contracted revenue. About $2 billion is from the containers, and we're enjoying these cash flows. On the tanker sector, as you very well said, we are in a position where we're enjoying the spot market opportunity, while at the same time we enter in a sector and we actually have built some very nice cash flows there. It is totally opportunistic. We see the opportunity and we move forward on disposal of assets and also on acquisition.
On the dry bulk and in our overall portfolio, one thing you will see very often, we will be selling older vessels, older technology that they need CapEx and moving to a younger fleet that it will inevitably be more better fuel consumption, better carbon footprint. This is a trade that we'll be doing constantly. You will see us doing it. That's why we sold the older vessels and we substitute with our younger Capesize vessels. They are about 50% less; they consume less fuel. They have about 50% better carbon emissions.
Thanks, Angeliki. Yeah, and then maybe just on the point there, the efficiency, I saw that you've now taken up your LR2 orders to six ships. I just wanted to double-check. Is it now the original four that were contracted maybe six months ago, those are now chartered? The latest two orders from today, those are under option to be contracted by the charter. Does that make sense? Four out of the six are officially chartered.
Yes, you are absolutely right.
Okay. Thank you.
Yes.
Yeah. Sorry. So I just wanted to double-check that. Then maybe just final question, and it's, you know, you'll probably be getting this or you've gotten this in the past. But how do you think now about how you're using some of your excess free cash? We've seen obviously you've been very dynamic with the fleet. But with the Navios Holdings dry bulk fleet now fully delivered into NMM as of September, you know, how do you think about the $100 million buyback you got in place?
Do you use that a bit more significantly now or does the pullback in containers, even though you're contracted, but does the pullback there, does the softness in dry bulk, does that give you a bit of pause in buying back shares?
You know, we adopted the buyback because we wanted to have the flexibility. Yes, of course, because of macro uncertainties that we saw and the balancing consideration that. On our balancing considerations, we have not put it into effect yet, but it's something that we're looking. This is about, you know, Navios is concentrating on total returns. This is a very important thing, and the decision of how we return to our shareholders, it depends on the relative value. We are. This is something that we adopted because we wanted the flexibility to use it.
Okay. Thanks, Angeliki. I'll turn it over.
Thank you.
Thank you. We'll take our next question from Matthew Hodapan of Citi.
Hello. Good morning.
Good morning. Good morning.
We were wondering if you could just touch on a little bit more about the softness in the container market right now and, you know, where you really see that going, you know, not only in 4Q, but also if you could potentially shed some light on the first half of 2023. Also in addition to that, if you wouldn't mind touching on the points of, you know, hedging out that new build risk with the longer term charters. If you could just talk a little bit more on those two points, that would be very helpful.
I will start with the container ship market. This is a market that, to be honest, we saw the opportunity of. We saw that people moved from the COVID period where we are all about products and purchases of products to services. Everyone is traveling, everyone is going to restaurants. It was inevitable that we have a softer market, and that's why we contracted as we have hedged our position and we took multiple ways of maximizing our returns. We sold vessels. You saw the transaction of $220 million, which we've completed in September, of $220 million sale of our 2006-built container vessels. Also, we contracted our new buildings.
One of the things that we did is we care very. We have about, from our $3.2 billion contracted revenue, $2 billion is in the container sector, and of that is a very front loaded. About $1 billion, we're gonna get earn within the first two years. It's a very front loaded because we see that now the companies are earning very well, good money, so the balances are very good, and we want to earn as soon as possible this amount. We are very we have a credit committee that we monitor all this, but we also have taken measures from the beginning, front load it and hedge the exposure.
Yeah. Thank you very much for that. Let's see. If you don't mind, yeah, just giving a little bit more detail, you know, on your puts and takes on the bulk market. You know, on one hand, bulk demand remains, you know, it remains strong but softening. Taking into consideration the supply issues, you know, it's likely gonna put pressure on what you're able to move. You know, how would you break down this market dynamic, you know, heading into the winter and, you know, the first half of next year?
I will give you a very macro level and let Ted speak to all this. One thing I'll say is that today you have coal, which is basically depends on the energy crisis in Europe. You will have more demand. It's an arbitrage there. The other big issue is the zero-COVID policy in China. At the end of the story, China is a 50% buyer of all commodities. The moment you have an easier COVID strategy, you will see that this will create an opportunity on the dry bulk and maybe on the larger vessels. It will be always iron ore. The larger commodities will be the driver of that market. With that, I think that Ted can give you better details on the
Sure. Thank you, Angeliki. You know, just taking a step back on the macro, let's just remember that the order book is under 7%. Net fleet growth next year is gonna be 0.5%. You may have some softness here into the winter. You know, eventually China will fix the zero-COVID policy, whether now or in a couple of months. That's why you're seeing, you know, the rates will come off a bit from the spring, but the actual S&P values have not because there's a lot of confidence that the market's gonna bounce back. They haven't come down as much as the rates, and the rates are actually starting to move up a bit, I would say.
I think you'll be seeing next year some really good grain ton mile increases of almost 5%. Coal is gonna be 3%. You're seeing longer haul routes for two out of the three, you know, out of the three majors, coal and grain. Iron ore will not have a ton mile, but it should come back next year as China, you know, infrastructure projects take hold in the spring and the COVID zero policy goes away. So I think there's a lot of optimism, but you may have a soft touch in front of us right now.
Thank you very much. You know, that's very helpful. Just finishing up, would you be able to break down the available days, you know, specifically within dry bulk, container and tanker, for the quarter?
I will Eric talk about this, but one quick thing I'll get what I'll give you on a macro level for 2023, you have a $6,000 breakeven per open day, of which we have 40,000 days, 30,000 more or less on the dry bulk and 10,000 on the tankers, which gives you a good outlook on our 2023 earning capacity. You want the Q3 or the Q4 quarter? Sorry, which quarter you're looking after?
We were looking at the third quarter.
The third quarter. Roughly we have around 4,000 tanker days, of which 1,000 are the VLCC days, 900 LR1 days, close to 2,000 MR1 and MR2 days and just below 200 chemical days. On the container side, we have 3,200 days. This is the, you know, the 10,000 days we have, roughly two vectors, so it's a bit more than 600 days, 2,000 days in the 4,000 size, and then 600 days for 3,450 and below. On the dry bulk side, we have roughly 6,000 days, I think.
Thank you very much. That's very helpful.
I think we can take this. That is around 2,000 Cape days and then 3,000 Panamax days, and the rest is Handymax.
Thank you very much.
Definitely. Definitely you can, you know, we can give you all your modeling questions, so that you can reconcile your modeling.
Perfect. Thank you.
Thank you.
Thank you. I will now turn the floor back over to Angeliki for any additional or closing remarks.
Thank you. This completes Q3 results. Thank you very much.
This concludes today's earnings call. We appreciate your participation. You may now disconnect.