Danaos: Market Seems Overly Alarmed By Current Rates

Oct. 11, 2022 11:06 AM ETDanaos Corporation (DAC)ZIM5 Comments


  • Container shipping rates are low and likely to head lower.
  • A lot of capacity is coming to the market.
  • But environmental regulation and low rates should result in capacity increases being mitigated.
  • Danaos Corporation has signed a lot of longer-term charter deals.
  • There's a lot of uncertainty beyond 2024, but this appears more than priced in.
  • Looking for a portfolio of ideas like this one? Members of Special Situation Report get exclusive access to our model portfolio. Learn More »

Worker using walkie-talkie in commercial dock


Danaos Corporation (NYSE:DAC) is a container shipping company with a market cap of ~$1.18 billion and an enterprise value of ~$1.57 billion. This translates to a share price of $54.45 per share. In the most recent

Data by YCharts

Danaos environmental regulation

Danaos environmental regulation (Danaos)

Data by YCharts

Fleet growth container shipping

Fleet growth container shipping (Danaos)

container spot rates

container outlook (NRF & S&P Global Commodity Insights)

Danaos debt overview

Danaos debt overview (Danaos)

Container shipping valuations

Container shipping valuations (Seeking Alpha)

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This article was written by

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Special-Situation And Event-Driven Ideas To Improve Risk Adjusted Returns
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Disclosure: I/we have a beneficial long position in the shares of DAC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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