Dear Fellow Shareholders,
I am pleased to report that our outlook for 2022 materialized as the container market experienced its strongest year since the advent of containerization. This resulted in record operating revenues, facilitated the liquidation of our ZIM shareholding, and drove our net debt to minimal levels. Furthermore, the charter agreements we entered into during the strong market insulate us from more uncertain conditions in 2023 and large part of 2024 earnings.
While the market experienced significant growth in 2022, it has since fallen back to earth due to geopolitical uncertainty, rampant inflation, and recession risks. As a result, we have adopted a cautious growth strategy. However, we are encouraged by the practical elimination of COVID-19 throughout the world, especially in China where the country is quickly recovering from the economic fallout of their zero-COVID policy.
Regarding our operations, we have successfully stabilized crewing issues by expanding our crewing arrangements and performing crew changes without any COVID-related hindrances. We are also managing operational issue related to the CII regulations, which have been enforced since the beginning of the year. This requires adjustments to vessel schedules and operational profiles, and this ongoing process is expected to significantly affect the container industry. Additionally, we are actively exploring a number of environmental initiatives to minimize our carbon footprint. Our investment in eight eco-friendly methanol-ready vessels is proceeding as planned, and we anticipate their addition to our fleet in the second half of 2024. We have already secured employment for the first six vessels.
The ongoing war in Ukraine remains problematic, and unfortunately, there is no clear end in sight. As a company, we are committed to actively supporting our Ukrainian seafarers and their families, particularly those who have moved abroad. Our thoughts and prayers are with them during these challenging times.
While it is challenging to maintain an overly optimistic for the year ahead, I am confident that Danaos is in its strongest position ever to weather any shocks and capitalize on any opportunities as they arise. Thank you for your continued support.
Respectfully,
Dr. John Coustas
President & CEO