Dear Fellow Shareholders,
2025 began under the shadow of the Red Sea crisis — the longest sustained disruption to a major global trade route in modern memory — and ended with the first cautious signs of its resolution. For most of the year, container fleets sailed thousands of extra miles around Africa while the Suez Canal stood largely empty, a vivid symbol of how profoundly geopolitics had reshaped commerce. But the Red Sea was only one front. Washington moved to impose port-call fees on Chinese-built vessels in an assertion of maritime sovereignty, before stepping back as part of a broader trade agreement. The war in Ukraine ground on. Tensions in the Strait of Hormuz flared. And yet, when the year’s ledger was tallied, global container trade had reached record volumes. The world’s appetite for goods, it turns out, is remarkably difficult to suppress.
Through it all, Danaos stood firm. Our strategy of securing long-term charter coverage, expanding our fleet with next-generation eco-compliant vessels, and maintaining an unrivaled balance sheet allowed us to turn uncertainty into opportunity. We grew our contracted revenue backlog substantially, expanded our orderbook across both containerships and dry bulk, and achieved charter coverage that provides clear earnings visibility for years to come.
Financially, we delivered another outstanding year — surpassing the billion-dollar revenue mark for the second consecutive time, generating strong cash flows, and maintaining one of the lowest leverage ratios in the industry. Our landmark unsecured bond issuance affirmed the capital markets’ confidence in Danaos, and the overwhelming majority of our fleet now operates entirely free of debt.
2025 also marked the beginning of a new strategic chapter. Our partnership with Glenfarne Group on the Alaska LNG project positions Danaos to enter energy transportation — a natural extension of our expertise in global seaborne trade. This is not a departure from who we are; it is an evolution of what we do best. At the same time, we continued to reward shareholders through consistent dividends and an active buyback program.
As we enter 2026, the landscape ahead is one of both transition and opportunity. The gradual reopening of the Suez Canal will reshape trade flows, new tonnage will enter the market, and trade policies will keep evolving. Many in our industry will face headwinds. Danaos will not be among them. Our fleet is fully contracted for the year, our newbuildings are pre-chartered, and our financial position gives us the freedom to act when others must react. With new deliveries arriving, our entry into LNG taking shape, and a fleet growing younger, greener, and more versatile, we are entering what I believe will be one of the most exciting periods in our company’s history.
I thank our seafarers and shore-based colleagues for their dedication, our customers for their trust, and you, our shareholders, for your partnership. The best of Danaos is still ahead of us.
Respectfully,
Dr. John Coustas
President & CEO