Shippingtelegraph: Not interested in the wave of speculative ordering for feeders: Danaos boss

by Shipping Telegraph

Leading container ship owner Danaos Corporation is not participating in the current wave of “speculative ordering.”

In the feeder segment, “pricing appears disconnected from long-term fundamentals,” emphasizes Danaos’ chief executive officer Dr. John Coustas, adding that the company is “only pursuing investments that meet our return criteria.”

“We are not broadly participating in the current wave of speculative ordering, particularly in the feeder segment,” the shipowner says.

The shipowner has added in the second quarter one additional 6,000 teu vessel to its orderbook at a shipyard with which the company has “an existing relationship.”

As it is reported, this vessel has already been fixed on a five-year charter to a “long standing client,” locking in “visibility and attractive returns.”

The 6,014 teu newbuilding containership has expected delivery in 2027. The company also took delivery of 6 newbuilding containerships in 2024 and 1 in January 2025.

“Our remaining orderbook currently consists of 16 newbuilding containership vessels with an aggregate capacity of 134,234 TEU with expected deliveries of one vessel in 2025, three vessels in 2026, ten vessels in 2027 and two vessels in 2028,” the company said in its second quarter and half year results.

As informed, all the vessels in the company’s orderbook are designed with the latest eco characteristics. They will be methanol fuel ready, fitted with open loop scrubbers (except for two 6,014 teu vessels) and alternative maritime power (AMP) units.

On the dry bulk side, the shipowner saw “some seasonal firming in the market,” but broader weakness persists, largely due to deflationary conditions in China. “While we continue to evaluate opportunities in the sector, asset values for modern tonnage remain elevated, and we are in no rush to commit capital in an uncertain macroeconomic environment,” John Coustas highlights.

To remind, Danaos recently invested in the dry bulk sector with the acquisition of 10 capesize drybulk vessels aggregating 1,760,861-dwt.

From a financial perspective, Danaos Corp. remains in “an enviable position,” Danaos’ chief explains. “Our strong balance sheet and cash generation capacity provide ample firepower to support our strategic priorities and position Danaos for long-term success.”

Meanwhile, the company’s contracted charter coverage stands at 99% for 2025 and 88% for 2026, including newbuildings scheduled for delivery during this period.

The shipowner has secured multi-year charter arrangements for all of its 16 newbuilding vessels orderbook, with an average charter duration of approximately 5.2 years weighted by aggregate contracted charter hire.

“We added approximately $113 million to our contracted revenue backlog since the previous earnings release, and our $3.6 billion total contracted revenue base provides meaningful insulation from short-term market fluctuations,” Coustas says.