Thank you for standing by, ladies and gentlemen, and welcome to the Star Bulk Carriers' Conference Call on the Third Quarter 2024 Financial Results. We have with us Mr. Petros Pappas, Chief Executive Officer; Mr. Hamish Norton, President; Mr. Simos Spyrou and Mr. Christos Begleris, Co-Chief Financial Officers; Mr. Nicos Rescos, Chief Operating Officer; and Mrs. Charis Plakantonaki, Chief Strategy Officer of the company. At this time, all participants are in listen-only mode. There will be a presentation, followed by a question-and-answer session. I must advise you that this office is being recorded today. We will now pass the floor to one of your speakers today, Mr. Begleris. Please go ahead, sir.

Thank you, Operator. I am Christos Begleris, Co-Chief Financial Officer at Star Bulk Carriers, and I would like to welcome you to our conference call regarding our financial results for the third quarter of 2024. Before we begin, I kindly ask you to take a moment to read the safe harbor statement on slide number two of our presentation. In today's presentation, we will go through our third quarter results, Star Bulk's investment proposition, actions taken to create value for our shareholders, cash evolution during the quarter, an update on the Eagle Bulk integration, vessel operations, fleet update, the latest on the ESG front, and our views on the industry fundamentals before we open up for questions. Let us now turn to slide number three of the presentation for a summary of our third quarter 2024 highlights. For the third quarter 2024 the company reported the following, net income amounted to $81 million, with adjusted net income of $83 million or $0.71 adjusted earnings per share. Adjusted EBITDA was $143.4 million for the quarter. For the third quarter, as per our existing dividend policy, we declared a dividend per share of $0.60 payable on or about December 18, 2024. Our total liquidity to date stands strong at $433 million. Meanwhile, our total debt stands at $1.3 billion. On the top-right of the page, you will see our daily figures per vessel for the quarter. Our time charter equivalent rate was $18,843 per vessel per day. Our combined daily OpEx and net cash G&A expenses per vessel per day amounted to $6,376. Therefore, our TCE less OpEx and cash G&A is $12,647. Since the Eagle Bulk transaction was completed on April 9 this year until the third quarter of 2024, the synergies achieved from integration amounted to more than $9 million. The integration process is advancing smoothly across all departments with significant potential for further savings in OpEx and dry dock costs in 2025 and the remainder of 2024. Continue to our fleet update for the quarter; during the third quarter we sold four vessels. Three of these vessels, namely Star Hydrus, Imperial Eagle, and Diva are expected to be delivered during the fourth quarter to their new owners for total gross proceeds of $50 million. Please turn to slide four for a summary of Star Bulk's compelling value proposition. Star Bulk is the largest U.S.-listed public company and second worldwide in terms of deadweight tons, specialized in dry bulk shipping with the highest trading liquidity. We operate a fleet of 156 vessels across all segments with an average age of 11.9 years. We operate a fleet of 80 Eco vessels and have 98% of our fleet scrubber equipped, which provides a significant competitive advantage. Star Bulk has proven to be a consolidator in the dry bulk industry. Starting in 2018, through nine mergers, we have grown our fleet by 75% in number of vessels. Furthermore, we operate a fully integrated management platform that makes us the most efficient and consistently amongst the lowest OpEx and G&A operators while maintaining the highest Rightship ranking. Since 2020, we have reduced our net debt per vessel by more than 50%, having reached the level where the scrap value of our fleet comfortably covers our current net debt. Since 2021, through 15 consecutive dividend payments, we have declared quarterly dividends of over $1.33 billion. We have taken advantage of historically elevated values to sell some of our older and less efficient vessels using the equity proceeds to buy back our shares at prices significantly below the net asset value. Since 2021, we have bought back $443 million worth of Star Bulk shares. Throughout the years, we have built solid corporate governance, which is shareholder-friendly by having primarily independent board members, including financial investors and other shipowners who have merged in their fleet for shares. It is important for our investors that management incentives are aligned with shareholders. Last but not least, Star Bulk is an ESG pioneer in shipping, being a leader in the industry's efforts to decarbonize. There is total transparency with investors, timely and efficient compliance with environmental regulations, and commitment to social responsibility. Slide five provides an overview of the company's capital allocation policy over the last three years and the various levers we have used to strengthen the company and increase the value of our shares while returning capital to our shareholders. Star Bulk has been growing the platform through consecutive fleet buyouts by issuing shares at or above NAV. In total, since 2021, we have taken actions of $2.5 billion to create value for our shareholders. On the bottom of the page, we show our net debt evolution. Our average net debt per vessel has decreased from $12.3 million per vessel to $5.7 million per vessel, a reduction of more than 50%. As a result of this deleveraging process, our current net debt is covered by the fleet's scrap value. Finally, we currently have six debt-free vessels with an aggregate market value of more than $100 million. Slide six graphically illustrates the changes in the company's cash balance during the third quarter. We started the quarter with $486 million in cash. We generated positive cash flow from operating activities of $138 million. After including debt processing and repayments, CapEx payments and energy-saving devices and ballast water treatment system installments and the second quarter dividend payment, we arrived at a cash balance to date of $473 million. I will now pass the floor to our Chief Operating Officer, Nicos Rescos, for an update on the Eagle Bulk integration and our operational performance.

Thank you, Christos. Slide seven illustrates a summary of the Eagle Bulk transaction integration. The technical and commercial management of the ex-Eagle fleet has been established across Star Bulk offices in Athens, Singapore, and Stamford, leveraging the combined global presence. The commercial teams for the Supramax and Ultramax vessels across three continents have successfully completed their integration, managing the second largest Supramax and Ultramax fleet globally, operating on both voyage and time charter basis. Crane management is gradually taken in-house, phasing out third-party managers, while technical maintenance and marine safety quality standards, processes, and policies have been applied uniformly across the combined fleet. Procurement of solar spare parts, bunkers, and lubricants has been centralized for the combined fleet. These measures are expected to produce significant operating cost efficiencies. On the bottom of the page, you will see an illustration of the synergies from the Eagle Bulk integration. Through OpEx, G&A, and interest expense savings as well as savings on dry dockings, we have achieved more than $9 million in cost savings. Please turn to slide eight, where we provide an operational update. OpEx was at $5,114 for Q3 2024. Net cash G&A expenses were $1,262 per vessel per day for the same period. In addition, we continue to rank at the top amongst our listed peers in terms of RightShip's Safety Score. Slide nine provides a fleet update and some guidance around our future dry dock and the relevant total offhire days. On the bottom of the page, we provide our expected dry dock expense schedule, which for the remainder of 2024 is estimated at $18.3 million for the dry docking of 15 vessels. In total, we expect to have approximately 420 offhire days for the same period. In 2025, we expect to dry dock 47 vessels for 1,200 offhire days at an expected cost of $53.8 million. On the top right of the page, we have our CapEx schedule, illustrating our newbuilding CapEx and vessel energy efficiency upgrade expenses, with 100% of our fleet now being energy-efficient technology fitted. Based on our latest construction schedule, our newbuilding vessels are expected to be delivered in Q4 '25 and '26. In line with EEXI and CII regulations, we will continue investing in upgrading our fleet with the latest operational technologies aimed at improving our fuel consumption and reducing our environmental footprint, further enhancing the commercial attractiveness of the Star Bulk fleet. Regarding our energy-saving devices retrofit program, we have completed 41 installations, with three more remaining for retrofit by the end of 2024. We plan to retrofit 126 vessels with ESDs within the next year. The above numbers are based on current estimates around dry bulk and retrofit planning, lesser employment, and yard capacity. Please turn to slide 10 for an update on our fleet sales. On a vessel sales front, we continue disposing of vessels opportunistically at historically attractive levels. In 2024, we have sold 13 vessels for total gross proceeds of $233 million, reducing our average age and improving overall fleet efficiency. Following the rollout of the Eagle Bulk existing chartering contracts, we now have a total of 10 chartering vessels. As mentioned earlier, we have five firm shipbuilding contracts with Qingdao Shipyard for the construction of five Kamsarmax newbuilding vessels, with delivery expected in Q4 and the first half of 2026. Considering the aforementioned changes in our fleet mix, we operate one of the largest dry bulk fleets among U.S. and European listed firms with 156 vessels on a fully delivered average age of 11.9 years. I will now pass the floor to our Chief Strategy Officer, Charis Plakantonaki, for an ESG update.

Thank you, Nicos. Please turn to slide 10, where we highlight our continued leadership on the ESG front. The sixth annual Star Bulk ESG report has been published in accordance with the latest Global Reporting Initiative requirements. Developed with PwC's guidance, the report has received limited assurance from EY and has been reviewed by the company's ESG committee. Among its key milestones, the report highlights the impact materiality assessment conducted with input from internal and external stakeholders and includes a comprehensive list of ESG-related key performance indicators, benchmarking the company's performance against previous years. Through implementing technical and operational measures to improve fleet energy efficiency, the company achieved a 4% reduction in scope 1 greenhouse gas emissions compared to the previous year, a 5.8 improvement in fleet-wide CII, and a 9.5% reduction in scope 3 emissions. For the fourth consecutive year, Star Bulk has successfully submitted the 2023 Carbon Disclosure Project Questionnaire. This year's submission expanded to include data on water management alongside climate change reporting. Preparations are underway for the FuelEU Maritime Regulation coming into effect in January 2025, focusing on compliance strategies such as biofuel adoption and leveraging the pooling and banking mechanisms outlined in the regulation. On the global regulations front, we actively engage with regulators and industry organizations providing input and expertise to support the development of mid-term greenhouse gas reduction measures expected to be adopted by the IMO in 2025. We continue to enhance well-being programs for our people and strengthen our contributions to society, including the sponsoring of athletes who qualified for the Paris 2024 Olympic Games. I will now turn the floor to our CEO, Petros Pappas, for a market update and his closing remarks.

Thank you, Charis. Please turn to slide 11 for a brief update on supply. During the first 10 months of 2024, a total of 29.4 million deadweight tons were delivered, and 2.9 million deadweight tons were sent to demolition for a net fleet growth of 26.5 million deadweight tons, or 2.6% year-to-date and 3% year-over-year. Uncertainty on future green propulsion, high shipbuilding costs, and limited shipyard capacity until late-2026 due to increased competition from other vessel types has helped keep new orders under control. The order book experienced a small increase and presently stands at 10.3%, while vessels above 20 and 15 years of age stand at 9.5% and 23.5% of the fleet, respectively. The average steaming speed of the dry bulk fleet has stabilized at low levels of approximately 11 knots during the last six months due to inflated bunker costs and environmental regulations, including EEXI and CII that increasingly incentivize low steaming. Moreover, as of 2024, an increasing number of vessels delivered during the 2009-2013 shipbuilding boom will be going through their third special survey, moderating supply growth as a consequence. Global port congestion has fully normalized following a strong reduction that lasted two years and gradually inflated available supply by approximately 6%. Congestion is now expected to follow seasonal trends, and the negative effect on the supply and demand balance will fade and could gradually reverse as of 2025. Moreover, rising tensions in the Red Sea since late 2023 and the rerouting away from the Suez continue to cause strong inefficiencies for trade, while crossings through the Panama Canal are expected to fully recover by the end of this year. As a result of the above trends, fleet growth is unlikely to exceed 3% per annum over the next couple of years, even under the assumption that demolition activity remains at current low levels. Let us now turn to slide 12 for a brief update on demand. According to Clarkson, total dry bulk trade during 2024 is projected to expand by 5.2% in ton miles. During the first three quarters of 2024, total dry bulk trade volumes increased by 5.4% year-over-year due to record iron ore, coal, and minor bulk exports, while ton miles have received extra support from canal inefficiencies and strong long-haul Atlantic exports. Despite the weak economic performance and a struggling property sector, Chinese dry bulk imports have increased by 6.4% year-to-date, supported by strengthened infrastructure, manufacturing, and hand product exports. Imports to the rest of the world are experiencing a strong recovery over the last year as lower commodity prices and easing monetary policy boost raw materials demand. During 2025, dry bulk demand is projected to increase by 1.3% in ton miles. While the IMF forecast for global GDP growth stands at 3.2%, the same as in 2024, while Chinese GDP is projected to slow down to 4.5% from 4.8% this year. The incoming Trump administration is expected to follow a pro-tariff policy that may create headwinds for global trade amid possible retaliation acts, but will, in our view, have a moderate direct impact on dry bulk trade. During the last few months, the Chinese authorities have announced a string of pro-growth measures that should help improve the economic outlook. The main goals of the various stimulus packages are to provide support on property prices, to reduce the huge inventory of unsold houses, to address local government debt through the issuance of ¥10 trillion special bonds, and to boost private consumption. Moreover, should the Trump administration impose heavy tariffs on Chinese products, we expect additional measures to support domestic consumption and alleviate potential weakness in exports. Iron ore trade is expected to expand by 5.8% in ton miles in 2024 and 1% in 2025. During the first three quarters, Chinese steel production declined by 4.1% year-over-year, as the property market continued to face challenges, while strength from manufacturing and steel exports have helped provide partial support. On the other hand, steel production from the rest of the world has experienced a recovery throughout the year, increasing by 3.3% year-to-date, driven by strong demand from India and a gradual recovery in the Atlantic region. Preference for higher quality iron ore to meet environmental targets is expected to gradually inflate ton miles as new mine capacity of higher quality iron ore will come online in the Atlantic over the next years and should gradually substitute Chinese domestic production and imports of inferior quality. Coal trade is expected to expand by 5% during 2024 and contract by 2% in 2025. Global focus on energy security during the last years has inflated coal trade volumes, but growth has come primarily from short-haul Indonesian exports. Chinese coal imports presently stand at record levels, having increased by 13.5% year-to-date, as thermal electricity generation grew at a faster pace than domestic coal production during the first three quarters, and coal stocks increased ahead of peak winter demand. Moreover, the Indian economy has expanded at a faster pace among G20 members, leading to a strong increase in energy demand, and along with inland infrastructure constraints on domestic production, has inflated coal import requirements. Grains trade is expected to expand by 6.6% during 2024 and by 2.4% in 2025. During the first three quarters, grain trade increased by 3.5%. However, during the third quarter, it declined by 0.5% driven by a correction of Brazilian corn exports, weak Black Sea volumes, and better than expected Chinese production. U.S. grain sales have experienced a strong increase and are expected to inflate grain volumes during Q4, while an increase in grain production worldwide should continue to put pressure on grain prices and support grain trade in the medium term. Minor bulk trade has the highest correlation to global GDP growth and is expected to expand by 4.4% during 2024 and 2.6% in 2025. The positive regional steel price arbitrage and the potential rush to build up inventories before the implementation of tariffs continues to incentivize Chinese exports and backhaul trades, while bauxite exports out of West Africa continue to expand at a strong pace, generating strong miles for the Capesize sector. As a final comment, we expect the relative Q1 market slowdown but remain optimistic about the medium-term prospects of the dry bulk market, given the favorable supply picture, stricter environmental regulations, and recent steps by the Chinese government to stimulate the economy. In a period of increased geopolitical uncertainties, we remain focused on actively managing a diverse scrubber fleet to take advantage of emerging market opportunities and continue creating value for our shareholders. Over to you, Operator.

Thank you. Our first question is from Omar Nokta with Jefferies. Please proceed.

Thank you, Operator. Good afternoon, everyone. I have a couple of questions. First, regarding the synergies from the merger with Eagle, you've reported $9 million so far through the third quarter. Can you discuss how you see this evolving? The initial target was $50 million, expected within 12 to 18 months. Do you believe you are on track to meet that goal? Could it be achieved sooner, and is there potential for more synergies than anticipated?

Thank you, Omar. This is Nicos. Focusing on Q3, where you see the $6.5 million of synergies for the quarter, gives a pretty good idea of what should be falling in the consecutive quarters and throughout 2025. The expectation is that this threshold per quarter should improve, especially as we're kicking on with efficiencies on crew changes, which has been an expense that we need to correct, and the dry docks have much more efficient expenses. So, I think we're on target. Hopefully, we'll be reporting better numbers as well in Q4.

Yes. And just to add, the synergies are at a $26 million annual run rate already, and we've got four quarters before we expect it to hit the final run rate. So, I think we'll be there, and we'll probably beat it.

All right, so thanks, Hamish. And just to make sure I hear correctly, the synergies that are to be realized from here in that sort of a bigger ratio or bigger amount are on the operating costs, like the vessel OpEx and on the dry dockings?

Well, dry dockings is, yes.

The $26 million run rate is only OpEx and G&A. On top of this you should add the dry docks that Nicos referenced during his presentation. We did not have any dry docks on the Eagle Bulk fleet during the third quarter. Therefore, the figure you see there, of $6.5 million, includes only OpEx, G&A, and indirect expense savings for this specific quarter.

Okay, I understand. Thank you. Since it's just one quarter after the merger, what should we be factoring in for ongoing G&A expenses?

Sure. Omar, this is Simos. The figure that we have actually for the third quarter for the Eagle Bulk, ex-Eagle Bulk office G&A is $13,700 per day per vessel. So, we have managed to bring it significantly lower than the figure that Eagle had during the last quarter of operation. We expect that as we move ahead, we will be in a position to further reduce the office expenses and headcount expenses of Stamford and Singapore to bring it closer to the figure that the Athens office had up until last quarter.

Okay, great. Thanks, Simos. And just a final one on my end, a more market color, and Petros, you discussed this a little bit. But just wanted to get maybe a bit more flavor or feel for how you've been seeing this market develop recently. Clearly, Capes have been the outperformer really all year. And even recently, even though there's been some volatility, Capes have definitely been firmer. But the sub-Capes seem to be a bit stuck. And just wanted to see if you could give a sense of what's driving that divergence?

Hi, Omar. The Capes have been performing relatively well this quarter, although their average for Q4 has been $20,800, which isn't particularly impressive. Recently, they had a strong performance, but overall, $20,800 is not a significant figure. The smaller sizes, like Supramax vessels, have averaged around $14,500. The real issue lies with the Panamaxes. It's unexpected since the quantity carried in 2024 has been 9.3% higher in tons compared to last year. The decline in Panamaxes can be attributed to several factors: first, the supply has increased by 3.4%, which is quite high; significant congestion reduction has particularly affected these vessels; additionally, 42% of the increased tonnage this year involves Indonesian coal to China, which is a short distance. Meanwhile, Brazil has reduced its corn exports by 7 million tons compared to last year, while Argentina has increased its exports, mainly using Supramax vessels. Brazil relies heavily on Panamaxes, so this drop has impacted them. The recent opening of the Panama Canal hasn't provided much relief either. Conversely, Russia has exported fewer grains from the Black Sea, and many Panamax vessels have become available due to reduced trade between China and its coastal areas. All these factors have collectively led to a decrease in demand for Panamax ton miles.

Got it. Petros, thank you, very clear and very helpful. Thanks, guys. That's it.

Thank you, Omar.

Our next question is from Ben Nolan with Stifel. Please proceed.

Appreciate it. Thank you. And by the way, that was a very comprehensive answer there, Petros. So appreciate that. It's helpful to me. I did have a couple of questions though. First, sort of following up with the market trends and so forth, I was curious if you have and appreciating that you talked a little bit about the impact of the election and change in administration in the United States, but have you seen any change in customer activity yet? Is there any sort of front-running of potential tariffs or anything of that sort? And maybe is that something you would expect or probably not?

Well, actually hi, Ben. Actually, we have not seen much yet, but we expect to see some short-term boost in trade because of what people are afraid is coming. We have a view about what the 'Trump effect' is going to be. If you want, I can elaborate on that.

Sure.

Okay. So U.S. trade, U.S. Bulk trade, actually isn't huge. The U.S. trades about 5% on exports and 2% on imports. So there will be a relatively small direct effect. But regarding tariffs, what will happen is that if there are significant tariffs on China, then China will import less from the U.S. and will import more from South America. This will create longer distances and probably, more importantly, congestion, because the South American ports are less efficient than the U.S. ports and will significantly increase demand from the same ports. So I consider that a positive effect. Additionally, tariffs may stimulate China to boost its economy as a countermeasure, which could also have positive repercussions. A negative point may be that it is probable that tariffs will have a negative effect on the world economy. We cannot evaluate that right now, but we believe there will be less overall trade. Specifically, we believe that tariffs will impact containerships more than anything else, given that there is a higher volume of trade from the U.S. to China. If that happens and there is a reduction in trade on container ships, it will affect Supramax vessels too since container ships, when performing well, tend to draw commodities away from Supramax vessels. Another effect could be that the Trump administration may contribute to the ending of the Ukraine war, which has created inefficiencies thus far. However, we think that Europe will not immediately lift its sanctions. In time, hopefully, there will be reconstruction in Ukraine, which would generate significant congestion. We anticipate increased exports from both Russia and Ukraine from the Black Sea, which represents a positive indicator. Conversely, should the Red Sea open up due to the Iranian situation, it would not bode well for shipping. Many vessels transit through the Cape of Good Hope, thus increasing ton miles. Finally, the Trump administration could strengthen the dollar, which would not benefit commodity trade and may reduce oil prices, adversely impacting vessel speeds. So overall, we see both positives and negatives but lean slightly towards a more optimistic outlook, particularly unless it leads to an opening of the Red Sea.

Yes, that was a lot more than I was counting on. Very helpful, I appreciate it.

I knew you would ask the question, so I was prepared.

Yes, you always are. So changing gears, just for my second question, you guys have been implementing and spending money on the energy-saving devices. I'm curious now that you've had them or there's quite a number of them that are in the fleet and you've been using them. Have you done any post-mortem at all in terms of figuring out what your actual return on the investment has been and what your excess cash flow is relative to vessels that don't have that equipment?

Hi, Ben. This is Nicos. We are trying to figure out the answer to the question before we install them. We're essentially doing module testing beforehand. Importantly, we do see trials on every ship that is fitted. Therefore, we have actual numbers that we count on, and we base our forecast on that data. The short answer is the repayment period is between two to three years depending on the measure, which ranges from changes in propellers to other efficiency upgrades. And the efficiency we obtain, as tested, is between 6% to 10% depending on the combination of technologies applied.

Okay. And there haven't been any variance relative to sort of what you had modeled and tested? It's coming as expected?

Yes, it is coming as expected because we do not install anything unless we run the calculations behind it; the effect beyond, of course, getting better consumption and burning less fuel. We know that the repayment is quite specific; also, the CII rating of the vessel improves once fitted with the devices. We follow a careful approach regarding when and what to install. Some ships we will just leave out. But vessels that require an upgrade remain competitive until we have a clearer picture on CII reduction rates post-2026 or fuels or retrofits. We prefer to keep everything upgraded to maintain our competitive edge, and it seems to be working, which is why you see us continuing with the plan.

Got it. Okay, very helpful. I appreciate it. Thank you.

Thank you, Ben.

Our next question is from Chris Robertson with Deutsche Bank. Please proceed.

Hey, good afternoon everyone and I shout out to Omar and Ben for taking most of the good questions there. One of the follow-up though on Ben's questions related to the energy-saving devices, but I noticed you mentioned in the slide here around the use of biofuels. Wondering if you could speak specifically on that, if that's biodiesel, if that's for use in the secondary tanks in certain areas, I guess just in Europe, kind of the economics around biofuel and the availability in terms of where you could pick that up as a bunker.

Hi, Chris, this is Charis. While we are looking into biofuels regarding maritime fuel regulation, which requires us to reduce the carbon intensity of the fuel we burn, there is a pulling mechanism enabling us to use biofuels on a few vessels to generate credits for the remaining vessels trading in and out of Europe. The regulation pertains solely to our trades in and out of European ports. Currently, we are in discussions with bunker suppliers. The biofuel we are considering is B30, which is the most available and tested to burn in our engine rooms. There is availability for the quantities we anticipate needing to comply with the 2025 regulation. However, the global regulations expected to be decided by 2025 and effective in 2027 will require us to reduce carbon intensity in our global trades, necessitating additional biofuel quantities. So this is a timeline we are preparing for. For 2025, we do not expect difficulties in sourcing the biofuel we need for compliance.

Okay. That's helpful. And just as a follow-up to that, I guess related to your fleet but potentially the broader fleet, are there any tweaks or upgrades to your engines or just engines in general across the fleet that would need to be done in order to burn the biofuel?

No, no, biofuels are already tested, and we can burn them in our engine rooms without any further modification.

Yes, the B30 is basically 70% fuel oil and 30% biodiesel, which makes it work.

Hamish, is there any additional maintenance required in burning that type of fuel? Does it create any issues down the road where it could increase costs anywhere?

Well, you have to use the right lubricating oil, and Nicos may be more familiar with that than I am, but I believe as long as you burn it relatively quickly after you buy it, it works well. I think it can deteriorate if you leave it for an extended period.

This is Nicos. It's correct that the last time of the fuel onboard should be kept in check. However, this is intended for European trade, as Charis mentioned. We've conducted our research regarding our calling frequency in Europe, and we have a good idea of what tons we will require to comply, especially after the Eagle merger, where we have a low-cost Supramax fleet that frequently docks in Europe. We don't expect any changes in operating expenses, maintenance, or damage to be done with these fuels; it’s safe to use, and we've tested it thoroughly.

And Chris, just to clarify for your modeling purposes, these are costs that through our charter parties we can pass on to our charters, so this wouldn't be additional costs for Star Bulk.

That's good to hear. Okay, yes, I appreciate the answers. Thank you very much.

Our next question is from Bendik Folden Nyttingnes with Clarkson Securities. Please proceed.

Thank you. So, at least from our numbers, the global market seems to be pricing in quite a discount to second-hand values, your stock included. So I would love to hear your thoughts on the current situation in the S&P market.

You mean what we think, where we think prices will move?

Yes.

Well, prices react to charter rates, so for the smaller vessels, we'll probably see a downside as long as they're not performing well, particularly within the Panamaxes. The picture is much better for the Capes since the order book is at about 7.4%, which is low, and there is an expectation of longer trade routes, more iron ore from Brazil, and an increase in bauxite from West Africa, leading to more ton-miles. Therefore, on the Capes, the market pricing will likely remain strong. It's worth noting that the availability of newbuildings is quite limited, which will drive interest in second-hand purchasing, hence supporting prices to a degree. Overall, although there isn't a significant issue for larger vessels, things will probably be more difficult for the Panamaxes if they remain weak.

And I guess a slight follow-up on that one. You did mention the softness in Panamax relative to the other segments. Do you see that as more of a structural issue or do you expect it to be temporary?

Yes, well, what do Panamaxes carry? They transport grains and coal. Therefore, it will depend on the outcome concerning these two cargoes. We believe that in the grain sector, there is potential for increased trade going forward. Regarding coal, the long-term outlook shows a decline in coal trade, but in the shorter term, particularly with the transition of the Trump administration, that could change. We also believe that, as previously indicated, due to the need for higher quality ingredients in steelmaking, which primarily involves iron ore and coal, and these resources are located in the Atlantic, long hauls will prevail. Thus, long hauls are of higher importance than the cargo quantities themselves. Hence, we believe the market will become favorable over time, though the Panamax order book is among the highest at around 14.1%, which won’t help.

Perfect. Thank you, guys.

Thank you.

Our next question is from Clement Mullins with Value Investors Edge. Please proceed.

Hi. Good afternoon. Thank you for taking my questions. Most has already been covered, but I wanted to ask about your fleet strategy moving forward. You currently have 10 vessels and long-term charter agreements. Could you discuss your thoughts on the trade-offs regarding the fleet, particularly in relation to the asset values you mentioned earlier in the mid-size segment?

Can you please repeat that, time charter versus what? I'm sorry, I think I'll let Petros Pappas take care of the size differences and so on, but I think one thing to be clear about is that with our share trading below the net liquidation value of our current assets, we intend to buy a big fleet of vessels for cash or to place large building orders for cash. We understand that with shares trading below net liquidation value, shareholders expect us to invest in our shares.

Yes. Regarding the purchase of vessels, as Hamish stated, on chartering, it will depend on pricing. The vessels that we have chartered in were done at terms extremely favorable for us. After that, when the market improved, charter costs shot up by $2,000 or $3,000 per day, and therefore we ceased new chartering. If the market slows down and rates revert to previous levels, we will engage more in that. We maintain a robust relationship with Japanese owners, and I am confident they appreciate our strong cooperation on chartering deals, allowing us to do more while ensuring favorable terms.

That's very helpful.

Thank you.

Yes, that's very helpful. Thank you for taking my questions.

Thank you.

We have reached the end of our question-and-answer session. I would like to turn the conference back over to management for closing remarks.

No further remarks, operator. Thank you very much.

Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

Thank you. Bye-bye.