Greek shipping company Danaos Corporation has returned to a Chinese shipyard to secure an early slot for the delivery of medium-sized container vessels.
According to TradeWinds, Danaos has ordered two 7,500 TEU container vessels from Dalian Shipbuilding Industry Corporation (DSIC), a subsidiary of China State Shipbuilding Corporation. The total value of the order is nearly $180 million, with each vessel costing approximately $90 million. Delivery is scheduled for late 2027. The newbuilds will operate on conventional fuel, equipped with scrubbers and featuring methanol-ready design.
Thanks to the collaboration between the two parties over the past three years, Danaos has secured an earlier delivery slot at DSIC for 2027.
Including the latest order, Danaos has placed orders for seven new vessels with DSIC. The remaining five are 9,200 TEU methanol-ready container vessels, announced in July 2024 (four vessels) and August 2024 (one vessel), with each vessel costing approximately $104 million. Based on this calculation, Danaos’ seven new vessels at DSIC total approximately $700 million.
Regarding the decision to continue investing in medium-sized container vessels, Danaos Chief Commercial Officer Filippos G. Prokopakis stated that this move is crucial for serving emerging markets. The company will also modernize its Capesize bulk carrier fleet.
Prokopakis said: “Danaos is adopting a prudent investment strategy. While other shipowners are expanding rapidly by signing a large number of feeder container vessels, the company will adopt a more stable and balanced strategy.”
Danaos has made it clear that it will not follow the recent surge in orders for feeder container vessels, a market segment that is currently attracting unprecedented attention, particularly from Greek shipowners. Prokopakis explained: “Given that current shipbuilding costs and market prices do not reflect future returns, the company has chosen to avoid excessive exposure to this market segment.”
Instead, Danaos is focusing on mid-size container vessels in the 5,900-9,200 TEU range, a fact confirmed by the latest newbuilding orders announced by DSIC. Prokopakis stated, “Maintaining a strong presence in this key vessel type segment is crucial for serving emerging markets in Asia, Africa, Oceania, and Latin America. These vessels are particularly popular with two groups: large charterers deploying them on secondary trade routes, and smaller operators viewing them as core assets in niche markets.”
In addition to continuing to develop medium-sized container vessels, Danaos is steadily expanding its market presence in Capesize bulk carriers. The fleet has now reached 10 vessels, with the goal of building a resilient and diversified fleet portfolio to navigate fluctuations in the freight market.
According to its official website, Danaos Corporation is a modern, large-scale independent container shipping company. Its fleet list shows it operates 74 container vessels and 10 bulk carriers. Container ship capacities range from 2,200 TEU to 13,100 TEU, while all bulk carriers have a deadweight tonnage of 175,500 tons. Additionally, 16 newbuild container vessels are under construction, including 2 6,014 TEU container vessels, 7 8,100 TEU container vessels, and 7 9,200 TEU container vessels.