Danaos profit up 16pc while transpacific growth slips 2-3pc
Danaos Corporation, the Athens-based, New-York-listed international containership owner and lessor, has posted US$33.7 million profit, up 16 per cent year on year.
Sales rose to $73.9 million for the three months ended June 30, up 17 per cent year on year.
While results were satisfactory, the Danaos statement said transpacific trades declined 2-3 per cent, while growth in Europe-Far East trades was only 10 per cent in the first half, compared to 20 per cent in the same 2007 half.
"Peripheral routes in the Middle East, South America, India and intra-Asia, have resilience. This, together with slow steaming, will mitigate any adverse effects from reduction in overall demand," the company said.
Charter market rates reflected a weakening in the ship 3,000-TEU and below, giving up the gains of 2007 and returning to 2006 levels. Larger vessels continue to trade at their highs despite some subletting activity, said the company.
"Trends in demand should become clearer during the third quarter as the impact of the crisis in financial markets, rising commodity prices and inflationary pressures are reflected in revisions to economic growth projections," said the company statement.
"The long term fixed rate charters under which the company's vessels are deployed protect us from current charter market volatility," said the company.
Danaos has 38 containerships totalling 150,870 TEU and a contracted fleet of 33 ships of 239,215 TEU, with scheduled deliveries up to 2011.
Sales rose to $73.9 million for the three months ended June 30, up 17 per cent year on year.
While results were satisfactory, the Danaos statement said transpacific trades declined 2-3 per cent, while growth in Europe-Far East trades was only 10 per cent in the first half, compared to 20 per cent in the same 2007 half.
"Peripheral routes in the Middle East, South America, India and intra-Asia, have resilience. This, together with slow steaming, will mitigate any adverse effects from reduction in overall demand," the company said.
Charter market rates reflected a weakening in the ship 3,000-TEU and below, giving up the gains of 2007 and returning to 2006 levels. Larger vessels continue to trade at their highs despite some subletting activity, said the company.
"Trends in demand should become clearer during the third quarter as the impact of the crisis in financial markets, rising commodity prices and inflationary pressures are reflected in revisions to economic growth projections," said the company statement.
"The long term fixed rate charters under which the company's vessels are deployed protect us from current charter market volatility," said the company.
Danaos has 38 containerships totalling 150,870 TEU and a contracted fleet of 33 ships of 239,215 TEU, with scheduled deliveries up to 2011.