Global Ship Lease, Inc. (NYSE:GSL) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 10:30 am ET

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Global Ship Lease, Inc. (NYSE:GSL) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
George Youroukos

of the year, freight rates and charter rates have both rebounded in the recent weeks with that recovery seen first in well-specified Post-Panamax vessels, particularly those with higher reefer capacity like those in our fleet just as we saw during the market recovery in 2019.

Idle containership capacity has fallen significantly from a high of 11.7% in Q2 to 6.6% by the end of July. Further, the opening of shipside linked facilities is allowing marginal tonnage to be deleted from the global fleet. Our charters and liner companies have demonstrated impressive price and capacity discipline, maintaining and even expanding their margins against a challenging macroeconomic backdrop.

Unlike prior downturns, the eventual post-COVID-19 demand recovery is set to take place against a supply side backdrop marked by a tiny orderbook, particularly in the size segments in which we operate. And this is a very important point, ladies and gentlemen. With well-specified low slot costs, high reefer capacity containerships in structurally undersupplied segments, Global Ship Lease should benefit from a tightening market in even a conservative recovery scenario.

With that, we will be pleased to take your questions.