Danaos a Big Winner as Containership Charter Rates Soar
By Mike Wackett (The Loadstar)– With products prices skyrocketing, sea providers are prepared to pay greater than dual previous day-to-day hire prices for legal ships to protect tonnage and also order market share.
He claimed Danaos had actually just recently refixed 7 vessels with providers for 12-month durations or longer at substantially greater prices than last done.
“Ships coming off charters in the range of $8,000-$10,000 a day are being re-chartered at $16,000-$20,000-plus,” claimed Dr Coustas.
The NYSE-listed shipowner reported modified earnings of $47m for the 3rd quarter, versus $38m the year prior to, and also $123m for the nine-month duration, compared to $111m in the previous year.
But it thinks returns will certainly boost substantially in the coming quarters as the greater charter prices are secured for a year or even more.
Danaos (DAC) runs a fleet of 63 containerships, varying from 2,200 teu to 13,100 teu, and also has actually just recently consented to acquire 2 9,000 teu vessels that will certainly take its overall ability to over 400,000 teu.
They are anticipated to be supplied in between December and also January and also included two-year charters “with a major liner company”.
According to The Loadstar’s queries with S&P brokers, one of the most likely provider is CMA CGM, which currently has actually 10 vessels hired from Danaos.
Dr Coustas claimed the acquisitions had actually been finished before a huge acceleration in possession rates, and also Danaos was not taking a look at any type of more orders.
He discussed: “First of all, there are no ships for sale, because the cashflow that is being generated from ships is pretty substantial, and one of the liners, MSC, has bought ships in the 8,500-9,000 teu class, which confirms our belief that this type of size and tonnage has a long strategic value for the liners.”
The solid Q3 efficiency and also favorable expectation is an unlike the scenario Danaos and also its containership having peers remained in simply 7 months back, when charter prices had actually plunged by 40% because the start of the year and also providers hurried to off-hire excess tonnage in assumption of a tightening in worldwide need of approximately 25%, as a result of the pandemic.
And shipowners were additionally coming under raised stress after that to change charter celebration day-to-day hire prices, in a repeat of the discount rates seen prior to the 2016 Hanjin personal bankruptcy. Danaos endured a loss of some $2bn from ships on lasting charter to the South Korean provider.
However, providers have actually because taken advantage of a suddenly solid bounce-back popular, which has actually caused significant products price spikes and also, eventually, really high earnings margins.
Indeed, previously this month, ONE introduced a fourfold earnings boost of $515m for the quarter finished 30 September and also, with the upcoming revenues arise from Hapag-Lloyd on Friday and also Maersk following Wednesday anticipated to comply with that pattern, charter prices are most likely to climb also greater.
The Loadstar is quick ending up being understood at the highest degree of logistics and also supply chain monitoring as one of the very best resources of significant evaluation and also discourse.