Danaos adds two newbuilds in China, boosts revenue backlog to US$3.6Bn

John Coustas-led Danaos Corp has returned to the newbuilding market, ordering two mid-sized container ships while also boosting its long-term charter coverage. 

The new vessels will feature eco-friendly designs, methanol-ready specifications, scrubbers and Alternative Maritime Power (AMP) units, and will be built to the latest International Maritime Organization (IMO) standards.

“With this order, Danaos continues to solidify its position as one of the major players in the global container ship market and takes yet another step towards fleet modernisation,” said chief executive Dr John Coustas.

The company’s orderbook now stands at 18 container ships with a combined capacity of 148,564 TEU, all due for delivery by 2028. Chief commercial officer Filippos G Prokopakis recently told Riviera that mid-sized vessels remain the strategic focus, as they are vital for serving emerging markets across Asia, Africa, Oceania and Latin America.

Revenue backlog rises

Alongside the newbuilding deal, Danaos has secured additional charter contracts worth US$304M. This includes US$164M from forward fixtures on four existing vessels and about US$140M from five-year charters tied to the two newbuildings.

As a result, total contracted operating revenues now amount to US$3.6Bn, with an average remaining charter duration of 3.9 years, weighted by contracted hire.

“With these significant additions to the contracted revenue backlog, we have further improved earnings and cash flow visibility,” Dr Coustas said.

Danaos’ fleet coverage is nearly fully contracted through 2025 and about 90% covered for 2026, including newbuildings based on scheduled deliveries.

The company currently controls a fleet of 74 active container ships totalling 471,477 TEU, alongside 10 Capesize bulk carriers with a combined 1.76M dwt.