London: Danaos’ adjusted net income has more than quadrupled quarter-on-quarter, thanks to surging panamax rates spurred by port congestion on the US West Coast and the shrinking global panamax fleet.
The Athens-based boxship operator reported adjusted net income of $30.6m in its Q1 2015 figures, compared to $7m in the final quarter of 2014.
Port congestion in the US during the first quarter led to increased demand on the Asia to US East Coast all-water service, Danaos said, boosting its TEU-mile earnings.
The delayed opening of the new Panama Canal will further help to absorb panamax tonnage in the short term, the NYSE-listed owner said in a statement today.
“We continue to maintain our strong 97% charter coverage in terms of operating revenues which insulates us from market volatility,” Dr. John Coustas, Danaos’ CEO, commented.
“Additionally, our $5,622 daily operating cost for the first quarter clearly positions us as one of the most efficient operators in the industry.”
The company has managed to reduce its net financing costs by $16m since the last quarter of 2014, which has helped reduced operating costs by $4.5m and increase operating revenues by $3.1m over the same period.