Hyundai Respect

Danaos recoats seven containerships

Athens-based containership owner and operator Danaos has recoated seven of its managed containerships, with the last two vessels in the series, the 8,463 TEU Phoebe and the 6,500 TEU CMA CGM Moliere, leaving drydock in June.

Image courtesy: Nippon Paint Marine
Hyundai Respect
Image courtesy: Nippon Paint Marine

The first vessel in the series, the 13,100 TEU Hyundai Honour, left drydock in January, followed in May by sisters Hyundai Respect, Hyundai Smart, and Hyundai Ambition, and Hyundai Speed in June.

Five of the seven vessels were applied with Nippon’Paint Marine’s A-LF Sea antifouling system during scheduled drydockings at Zhoushan Changhong Shipyard in China. Each hull was fully blasted prior to application to a 60-month drydocking interval.

The Germany-based coatings specialist, the maritime division of Japan’s Nippon Paint, has an extensive track record with Danaos, having applied its A-LF Sea antifouling system to almost half of the ship manager’s 60-vessel fleet.

“As a leader in container shipping, it is vitally important to all at Danaos that we do everything we can to reduce the impact of our operations on the environment. Based on many years’ experience with Nippon Paint Marine, we have found A-LF Sea contributes positively to reduced drag and, consequently, lower fuel consumption and fewer CO2 emissions,” Danaos’ DCOO & Technical Director, Vastarouchas Dimitrios, said.

The company is also considering Nippon Paint Marine’s new Aquaterras coating as a way of further reducing the impact of operations on the marine environment.

At the moment the duo has a test patch applied on one of the company’s vessels.

A-LF Sea is based on copper silyl acrylate copolymer technology with a high volume of solids to provide antifouling performance over long periods. Nippon said that its solution delivers hull friction reduction of up to 10%.

Danaos reported a net income of $67.5 million for the first six months of 2020, somewhat higher than last year’s $ 63.5 million.

“We are also cautiously optimistic about the medium-term market outlook. The orderbook is currently in single digits as a percentage of the world fleet for the first time in 20 years. Combined with an anticipated reduction in speeds due to the various environmental initiatives, the supply side outlook is healthy. Tighter supply will help to accelerate the recovery in the container market,” Danaos’ CEO Dr. John Coustas commented.
As explained, the company is well insulated from near-term volatility due to its high charter coverage of 85% in terms of operating revenues and 62% in terms of operating days over the next 12 months.

“We have now concluded all the scrubber installation investments and took delivery of two 8,500 TEU vessels during the second quarter. Finally, we have ample liquidity and a $1.2 billion charter backlog, which provides us with flexibility to both manage our business and react to growth opportunities that may present themselves,” he added.

Coustas said that given continued uncertainty about the duration of the coronavirus pandemic, the company was focused on maintaining a conservative financial profile and making thoughtful capital allocation decisions.