Thank you for joining us for Navios Maritime Partners' Q2 2021 earnings conference call. With us today from the company are Chairman and CEO, Ms. Angeliki Frangou, Chief Financial Officer, Mr. Efstratios Desypris, and Executive Vice President of Business Development, Mr. Georgios Akhniotis. As a reminder, this conference call is being webcast. To access the webcast, please go to the investors 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 can also be found there. I'll now review the safe harbor statement. This conference call could contain forward-looking statements within the meanings 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' filings 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' financial results. Mr. Akhniotis will provide an operational update and an industry overview. Lastly, we'll open the call to take questions. I turn the call over to Navios Partners Chairman and CEO, Mrs. Angeliki Frangou. Angeliki.
Thank you, Laura. Good morning to all of you joining us on today's call. I am pleased with the results for the Q2 of 2021. During the Q2 , Navios Partners recorded revenue of $152 million, net income of $99.9 million. As you can see on slide four, approximately 56% of our fleet are dry bulk vessels and 44% of our fleet are container ships. Please turn to slide five. Navios Partners is a top 10 U.S. publicly listed dry cargo fleet with 98 vessels, of which 55 are dry bulk vessels and 43 are container ships. Our diversified fleet should insulate us from industry cyclicality. You can already see the flexibility created by the different segments as we address open available days and financing. We have about $1.1 billion in contracted revenue.
Contracted revenue for the H2 of 2021 is expected to exceed our total estimated fleet expenses for the same period by $47.8 million. This enable us to have about 36% of our available days either open or index-linked. We have a strong balance sheet with low leverage. Partially as a result of all these factors, our units have performed well in 2021 year-to-date. Slide six reviews our recent developments. During Q2, NMM generated $90.4 million in EBITDA, $99.9 million in net income, and $4.32 earnings per unit. We continue to renew and expand our fleet. We agreed to acquire 11 vessels with an average age of 4.8 years for about $552 million and agreed to sell two vessels with an average age of 15.7 years for $41.4 million. As a result of our fleet renewal and expansion program year-to-date, we added a net of 44 vessels to our fleet.
Our container ship fleet increased by 330%, while average age reduced by 25%. Our dry bulk fleet capacity increased by 37%, while its average age reduced by 18%. We arranged about $615 million in new financing year-to-date, including $405 million to finance new acquisitions, $124.3 million to refinance 2021 maturities, and $86 million to refinance other loans. We have a strong cash flow potential for the H2 of 2021. We have 15,743 available days with about 36% of our available days are still open or index-linked. Slide seven highlights our diversification advantage. Because we operate in both the dry bulk and container ship segments, we should be able to mitigate normal industry cyclicality, leverage fundamentals across both sectors, and reduce our cost of capital. This has created optionality. For example, our chartering strategy optimize different sector fundamentals.
With our container ships, we have fixed on medium to long-term charters over 99% of our available days for the H2 of 2021 and 78% fixed for 2022. However, our charter rates in the dry bulk sector strengthening in the H1 of 2021. We have maximized market exposure in the dry bulk vessels. Over 63% of our available days in the H2 of 2021 and about 94% of our available days in 2022 are open or index-linked. Through these diversified strategies, we have secured more than $1.1 billion in total contracted revenue. Slide eigh- describes our fleet renewal and expansion year- to- date. In 2021, year- to- date, our fleet increased by 800% in terms of number of assets, 44 net vessel additions. We acquired 38 vessels on the water and an additional 13 new building vessels to be delivered into our fleet.
We also agreed to sell seven vessels with an average age of 13.7 years for $108 million in profit. Through these activities, we increased our containership fleet by 330% and our dry bulk fleet capacity by 37%. Moreover, we have successfully reduced the average age of our fleet in both segments, 25% reduction in containerships and an 18% reduction in dry bulk. Slide nine details our operating fleet as shown for the H2 of 2021. About 64% of our available days are fixed at an average rate of $22,919 per day. Our contracted revenue exceeds total estimated fleet expenses by $47.8 million. The remaining 36.1% of our available days are either open or in a pool, which provided market exposure. Slide 10 shows our liquidity position. As of June 30th, 2021, we had total cash of $232.9 million and total borrowings $795.5 million.
Our net debt to book capitalization is 27.3%, and our debt maturities as targeted with no significant debt maturities until 2023. At this point, I would like to turn the call over to Mr. Efstratios Desypris, Navios Partners CFO, who will take you through the financial results for the Q2 of 2021. Stratos?
Thank you, Angeliki. Good morning, all. I will briefly review our audited financial results for the Q2 and H1 ended June 30, 2021. Financial information is included in the press release and is summarized in the slide presentation available on the company's website. Before I discuss the results, I would like to remind you that the merger with Navios Containers was completed on March 31st. Consequently, the results for the H1 of 2021 include the results of Navios Containers only for the Q2 . Moving to the earnings highlights on slide 11, revenue for the Q2 of 2021 increased by 227% to $152 million, compared to $46.5 million for the Q2 of 2020.
The increase was mainly due to the following reasons: an 80% increase in available days of the quarter following the merger with Navios Maritime Containers and the expansion of our fleet, and also an 81% increase in the time charter equivalent achieved in the quarter compared to the same period last year. Adjusted EBITDA for the Q2 of 2021 increased to $90.4 million, compared to $14.3 million in the Q2 of 2020, primarily due to the increase in revenues discussed above. This increase was mitigated by a $19.8 million increase in vessel operating expenses and a $3.3 million increase in G&As due to our increased fleet, and a $6.2 million increase in net other expenses. Net income for the quarter amounted to $99.9 million. Fleet utilization for the Q2 of 2021 was almost 100%.
Moving to the six-month operations, as mentioned earlier, the discussion below excludes the results of Navios Containers for Q1 of 2021, as the merger was completed on March 31st. For the Q1 of 2021, Navios Containers recorded $43.8 million of revenue and $22.8 million of EBITDA. Time charter revenue for the six months increased by $124.1 million to $217.1 million compared to $93 million in the first half of 2020. The increase was mainly due to the 66.8% increase in the time charter equivalent achieved in the H1 of 2021, as well as a 41.4% increase in available days. EBITDA and net income for the H1 of 2021 include $8.8 million of gain from the revaluation of our investment in Navios Containers as a result of the merger.
I would like to point out here that in 2019, we had written down our investment by $42.6 million. Also included in EBITDA net income in the H1 of 2021 is a $44.1 million gain from the completion of the merger and the purchase rights allocation to the assets and liabilities of Navios Containers. Excluding these items, adjusted EBITDA for the H1 of 2021 amounted to $124.1 million compared to $33.4 million in the same period of last year. Adjusted net income for the H1 of 2021 amounted to $111.7 million. Turning to slide 12, I will briefly discuss some key balance sheet data as of June 30, 2021. Cash and cash equivalents were $232.9 million. Long-term borrowings, including the current portion net of deferred fees, amounted to $795.5 million. Net debt to book capitalization reduced to 27.3% at the end of the quarter.
Slide 13 shows the details of our fleet. Our fleet is in the top 10 U.S. publicly listed dry cargo fleet as measured by number of assets. We have a large, modern, diverse fleet of 98 vessels with a total capacity of 9.3 million deadweight tons. Our fleet consists of 35 dry bulk vessels and 43 containerships. In slide 14, you can see our ESG initiatives. Maritime shipping is the most environmentally friendly means of transportation, as it is the most carbon-efficient mode of transport. We aspire to have zero emissions by 2050. In this process, we have been pioneering and are adopting certain environmental regulations up to two years in advance, aiming to be one of the first fleet to achieve full compliance. Navios is a socially conscious group whose core values include diversity, inclusion, and safety. We have 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. I now pass the call to Georgios Akhniotis, Executive Vice President-Business Development, to discuss the industry section.
Thank you, Stratos. Please turn to slide 16. The Baltic Dry Index reached 3,418 on June 29th, the highest level since 2010, as earnings for sub-Capesize vessels reached multiyear highs. At 2,793, the Q3 index average was more than double any Q2 quarterly average in the past decade. Rates in all asset classes have risen sharply, reflecting surging trade, driven by strong demand for both major and minor bulk commodities. Supply and demand fundamentals going forward remain extremely positive, as strong demand for natural resources, combined with COVID-related logistical disruptions, which adds to fleet inefficiencies, and a slowing pace of new building deliveries all support strong levels of spot and future freight rates. The IMF projects global 2021 GDP growth at 6%, the highest in 50 years, led by an 8.6% expansion in China, India, and developing Asia.
Accordingly, 2021 dry bulk trade is projected to increase by 4% and further increase by 1.7% in 2022. Turn to slide 17. Demand is forecast to outpace net fleet growth in both 2021 and 2022. The graph on the left shows that dry bulk demand for the three major cargoes of iron ore, coal, and grain for the H2 of 2021 is forecast to increase by 7% compared to the H1 . The graph on the right highlights the previously mentioned slowing fleet growth. Net fleet growth is forecast to be 3.3% this year and only 1.2% for 2022. Turn to slide 18. Post-pandemic stimulus measures in the advanced economies and increasing industrial production and economic growth in China have fueled demand for iron ore. Global iron ore demand is expected to increase by 3.6% this year.
Additional availability of iron ore shipments to China in the H2 of 2021 are expected to increase as steel mills replenish stockpiles, driving demand for Capesize vessels. Forecasts are also for growth in iron ore imports around the world as the effects of the pandemic recede. Europe’s imports are expected to grow by 18%, and Asia, excluding China, is expected to import 12% more iron ore in 2021 than in 2020. Please turn to slide 19. Asian coal imports, which account for over 80% of world seaborne coal trade, are expected to increase by 3.7% in 2021. According to the International Energy Agency, global coal-fired electricity generation is expected to rise by nearly 5% this year and exceed pre-pandemic levels before increasing a further 3% to an all-time high in 2022. Turn to slide 20.
An ever-increasing world population, food security issues driven by the pandemic, as well as increasing protein demand worldwide, continues to support the global grain trade. World grain production this year will reach a record according to the International Grains Council and the USDA. Worldwide grain trade has been growing by 5% CAGR since 2008, mainly driven by Asian demand, which increased by 15.5% in 2020 and is forecast to grow by a further 6.9% in 2021. Overall, total world grain trade is expected to increase by 4.4% in 2021. Please turn to slide 21. The current order book stands at a historically low 5.8% of the fleet. Contracting for all 2020 and year-to-date combined has been low, about equal to all contracting in 2019. Accordingly, 2021 net fleet growth is expected at 3.3% and only 1.2% for 2020, below the projected increase in dry bulk demand for both years.
Turn to slide 22. Vessels over 20 years of age are about 8.7% of the total fleet, which compares favorably with the previously mentioned historically low order book. Scrapping totaled 15.8 million tons in 2020, and year-to-date has totaled 4.7 million tons, which is on pace for a yearly total of 8.6 million tons. Please turn to slide 24, focusing on the container industry. Stimulus measures have caused recovery of consumption in the advanced economies. This targeted stimulus has led to a historic turnaround in global container trade. As you can see on the chart on the lower right, freight rates for all main routes from China rose dramatically from mid-year 2020. Increases in consumer demand for goods, port congestion, and restocking led to container ship demand growth of 6.3% in 2021 and 3.8% in 2022. The increased demand is expected to exceed supply in both years.
Please turn to slide 25. The recent rapid market recovery has caused extremely high demand for available tonnage, which is in short supply across all segments. In particular, the extremely tight availability of Panamaxes, combined with port congestion, increasing trade, and lack of newbuildings, has propelled period time charter rates to hit historic highs of $70,000 per day for periods up to one year.
The Shanghai Containerized Freight Index has broken through the 4,000 level for the first time ever and stands approximately 4x higher than the 10-year average, spurred by the early restart of the Chinese economy and from continuing demand for consumables and pandemic-related supplies worldwide. Turning to slide 26, fleet growth is a manageable 4.5% this year and 2.6% for 2022. Even in this high-demand environment, scrapping should continue as 10.5% of the fleet is currently 20 years of age or older. In conclusion, positive demand fundamentals, mainly due to the restart of economic activity around the world, along with reduced fleet availability, should continue to support both the dry bulk and containerized shipping industries in their continuing effort to navigate through the easing pandemic slope. This concludes my presentation. I would now like to turn the call over to Angeliki for her final comments. Angeliki?
Thank you, George. This completes our formal presentation, and we open the call to questions.
At this time, if you would like to ask a question please press the star and one on your touchtone phone. You may remove yourself from the queue at any time by pressing the pound key. Once again, press the star and one if you would like to ask a question. We will take our first question from Randy Giveans with Jefferies. Your line is now open.
Howdy, team Navios. How's it going?
Very well. Good morning.
Good morning. All right, a few questions here. I guess first, just looking at your chartering for the container ships, you recently booked five 4,500 or so TEU container ships on three-year charters. Clearly very impressive rates above $40,000 a day. Two questions with that. How did you decide on the staggered or maybe step down annual rates structure for that? Secondly, you have two container ships with charters expiring in December. When do you expect to book new charters on those two?
Very good questions. Let's really see what we have been doing. We are actually, with all the repositioning we have done on the company, we have created this sizable fleet of 98 vessels and almost 100. We are using the different industry fundamentals that we have to create the optionality on the balance sheet of the company. We have 55% dry bulk, 45% container ships. What we are doing is we're creating cash flows, medium-term cash flows on staggered possibilities. What we're creating with that, we give the optionality to the company to have spot dry bulk vessels, which we cannot have long-term, and get the upside for that. Basically, our goal is to create this long-term durable cash flow with a conservative balance sheet. That is the outlook.
As the maturities, as we see vessels coming close, we will do it in the moment of strength. That is always the way. What is very important is that we are mindful of our structure and we're positioning the company for the long- term.
Sure. I guess on those two charters expiring in four months, five months, maybe, it seems like there's already a market for those. Are those being negotiated now, or are you waiting till the fall?
We are doing a portfolio approach. We're always talking to everyone, and that is our job, and we will do it in the more appropriate on the liner that has the biggest need. We have done that, I think, in a very good way. You have seen that last year, and you can see it on the way we have structured our entire portfolio. We are able to create these cash flows because we've been stepping very quickly, and we will do it on the strengthening of the market, we see strengthening of the market.
Okay. All right. I guess secondly, you don't mention the ATM results in the press release, but I do see that net cash provided by financing activities was up $258 million. I guess with that, how much of both the $75 million and then the $110 million ATM programs have been used so far? Is there any remaining? What is the current outstanding unit count just for our modeling purposes?
Hi, Randy. Good morning from me also.
Hey.
We will have all the details on the number of the units that have been issued and the units outstanding, as well as the status of the ATM program in our 6-K, filing that will come shortly. What I can share with you on this call is the fact that practically, the ATMs program have been practically completed by now. There is very minimal amounts left.
Okay. Assuming $25 or so a share, it seems like that'd be around 6.5 million-7 million shares. Is that fair on the new share count?
You will have all the details in the filing, so let's be patient on that.
Okay. I'll wait on that. Two more questions. I guess, looking at your vessel fleet changes, you've been pretty active in acquiring vessels of late. Do you expect that to continue, or are you going to focus more on maybe selling some older vessels, which you already have done a few here? Just looking at changes in your fleet going forward.
Listen, this is an ongoing process, meaning we will always, and we have been, I think, getting good prices on the older fleet. We have disposed of the vessel in a nice order. This is an ongoing repositioning of the fleet. Also we have done some new buildings and secondhand acquisition and new buildings. I think that is a need that we have. You can see our container ship fleet, for example, is older, so is more upsided, older. We saw an opportunity, and we position ourselves to acquire vessels that are very good for the point-to-point transportation, like the 5,200 TEUs. We saw that that fleet is something that the market needs. There is no new orders. We have been very successful, and we see that the pandemic economy has created a need for this point-to-point transportation.
That is an area where we stepped in, we saw good opportunities, good value, and we went in. Again, we did actually financing them via balances in the beginning and then getting the right finance as we go process.
Got it. Okay. The last question from me, we're about halfway through the Q2 . Can you provide maybe some quarter-to-date rates for your multiple dry bulk asset classes with spot exposure, or I guess, index-linked exposure?
I think you're a better expert than us. Everyone has collections, values, and I will not even compete with you guys. You're very good on that, and you can find it. I think the one thing that I would like to say is that the company, and I think this is an important issue, we are repositioning the company for the long term. We went through a nuclear green there. We saw equity markets close, debt market being unavailable. In 2019, we had the term loan B, and basically that was not available for the dry bulk. We have seen Capesize rates last year being around $8,000 container ship, baby Panamax around $8,000. Basically, the pandemic had a material effect on shipping. We have positioned well the company. We saw opportunities. We stepped in. We acquired an NMCI that has been nicely paid dividends for us.
It was a nice transaction. We saw over 3.5x Value expansion. Our goal is to create a company that has long-term durable cash flows and to position the company for the long- term.
Sure. All right. Well, yeah, it seems like Q2 was great. Clearly, the Q3 rates should be better than that. We will be looking forward to the next quarter indeed. Thanks so much.
Yes, I want to remind you, last year, pandemic is still here, and we all should be very mindful of where we are.
Yes.
Thank you.
Thank you.
We will turn the program back over to Angeliki for any additional or closing remarks.
Thank you. This completes our Q2 results.
This does conclude today's program. Thank you for your participation. You may disconnect at any time, and have a wonderful day.