File Photo: Federico Rostagno/ Shutterstock

By Mike Wackett (The Loadstar)– Athens- based non-operating containership proprietor Danaos Corporation claimed today it anticipated container profession need would certainly exceed supply development next year.

During its third-quarter outcomes discussion, president John Coustas was favorable on the industry’s overview, connecting the boosting leads to a mix of reduced orderbooks and also the indirect windfalls for shipowners from the IMO’s 0.5% sulphur cap on aquatic gas that enters impact on 1 January.

“We are aligned with the shipping analyst reports, and our expectation is that container trade demand growth will outpace supply growth for the first time in almost 10 years,” claimed Dr Coustas.

He kept in mind that the IMF was presently projecting international GDP development at 3.5% for following year, while experts anticipate container profession growth somewhat greater, at 4%, compared to the development in capability, which is not anticipated to go beyond 3%.

“Market participants, mainly liner companies, have generally remained reluctant to place newbuilding orders until the US-China trade talks are settled and the IMO regulations come into effect,” he claimed.

The absence of newbuild shipments following year, along with the decline in the containership fleet because of the retrofitting of scrubbers, would certainly, according to Dr Coustas, remain to underpin the charter market following year.

NYSE-listed Danaos reported that the containership charter market had “strengthened considerably during the last six months”, specifically for vessels over 5,500 teu– albeit, it claimed, there had actually additionally been a renovation in charter prices for panamax vessels.

“Larger vessel classes have seen the greatest downtime (due to scrubber retrofitting) and we expect this to continue through 2020 and help to contribute to a healthy charter market. This coincides with improving underlying market demand supply fundaments,” claimed Danaos.

During Q3, Danaos ran approximately 55 ships, varying from 2,200 teu to 13,100 teu, which were normally taken care of lasting with lining delivery business.

Fleet exercise throughout the quarter stood at 98.7%, which compares to 97.4% for the exact same duration the previous year.

Net revenue for Q3 was $37.9 m from running profits of $111.8 m, and also $110.7 m for the nine-month duration from $337m of profits. As at 30 September, the complete acquired profits covered by charter events stood at $1.4 bn.

As a repercussion of enhanced everyday hire prices, the possession worth of Danaos’s fleet has actually boosted from $1.1 bn in January to $1.38 bn, according to the most up to date information from vesselsvalue.com. As an instance, the possession worth of the 13,100 teu Maersk Exeter, on lasting charter to Maersk, has actually leapt from $75m to $85m.

In regards to including ships to its fleet, on 2 October, Danaos finished the acquisition of the 2005-built 8,100 teu Conti Champion from German shipowner Reederei NSB for a cost of $25m. The vessel is anticipated to be provided by the end of May and also it is comprehended that a long-lasting charter has actually currently been concurred with a significant container line.

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