Containers Profit Up Thanks to Low Slot Cost
In spite of record vessel deliveries the container shipping profitability is expected to improve in 2015, driven by lower unit costs. The global fleet is expected to grow 7.2% in 2015, a faster pace than demand which is forecast to expand at a more modest 5.3%. But the shipping consultancy Drewry, forecasts that industry unit costs will continue to decline at a faster pace than average freight rates, so raising profitability. Bunker prices have plunged by more than 50% over the past six months, reducing the largest cost element for ship operators. The anecdotal evidence suggests that carriers intend to increase annual contract rates on all trades with their key BCO (beneficial cargo owner) clients this year.
Danaos Appoints Chatzis as CFO
Danaos Corporation (NYSE: DAC), an owner of containerships, announced that the Board of Directors of the Company has appointed Evangelos Chatzis to the position of Chief Financial Officer, effective July 22, 2011. Chatzis has more than 16 years of experience in corporate finance and the shipping industry and has been with Danaos since early 2005 where he has served as Treasurer and Deputy Chief Financial Officer. During his years with Danaos he has been actively engaged in the company's financial management, the company's initial public offering in the United States, and has led a variety of projects, the latest being the successfully concluded comprehensive financing plan of the company.
