DANAOS Sustainability & Environmental Report 2019

Page 1

S U S T A I N A B I L I T Y & R E P O R T

E N V I R O N M E N T A L 2 0 1 9


“The earth is what we all have in common” Wendell Berry Naturalist & writer


SUSTAINABILITY REPORT 2019

3


DISCOV OUR STR W o r ld C la ss Leading E d g e Q ual it y - Sa f e t y Exp eri e n ce - S t a 4


ER ENGTHS Shi p p ing E x per tis e Resp o ns i b i li t y bili ty - D i s ci pli n e


DANAOS SHIPPING CO. LTD

Enhancing the training of our personnel ashore and on-board Vessel integration

Actively participating in and leading research & development projects

ENSURING EFFICIENCY SAFETY AND RELIABILITY

Promoting company culture and personnel bonding

Strong comparative advantage and become sector leaders

20 1 9 H IGH L IGH T S Un d er t o o k 5 8 6 9 t ra i n i n g h o u rs in G reec e a n d o u r bra n c hes C o m p l et ed 1 2 0 b ri d ge s i m u l a to r tra in in g ho u rs I n c rea s ed fu r t h er rep o r t i n g o f Nea r Mis s es , c o u n tin g 2 1 3 rep o r ts fo r this yea r A c h i eved a z ero s p i l l a ge rec o rd N o i n c i d en ts o f n o n -c o m p l i a n c e with s o c ia l , en viro n men ta l a n d ec o n o mic l aws a n d regu l a t i o n s

Over the last 2 y e ars: 15 . 9 % d ec rea s e i n t h e u s e o f Hea vy Fu el O il 78 . 1 % i n c rea s e i n t h e u s e o f Low S u l p hu r Fu el O il 11 . 4 % d ec rea s e i n C O 2 em i s s io n s 18 . 7 % d ec rea s e i n S O x em i s s i o n s a n d 1 1 . 6 % dec rea s e in NO x emis s io n s

6


SUSTAINABILITY REPORT 2019

M E SSA GE F RO M T HE COMP ANY’S MANAGEMENT

Th e pri n cip le s o f s u s ta ina b ility a re a n i n ext ri c a b le p a r t o f o u r cu ltu re o nbo a rd a n d a s ho re . I n o rd er to u p h o ld th e se p rincip le s , w e s trive t o I n thi s C h a p t er ma inta in th e h ig h e s t G R I 102- 1 4 le ve l o f e th ical co nd u ct a s w e ll as s o cial an d en vi ro n m e nta l re s p o ns ibility . W e are o pt i m i s t i c th at s h ip p ing and s u s tainabilit y c a n s ha pe a be tter f u tu re a nd w e a re c o m m i t t ed to active ly co ntrib u te tow a rds t h e a c hi eve me nt o f th e U N S u s ta ina b l e Devel o pm e nt G o a ls b y 2 0 3 0 , e s p e cia ll y t h o s e relate d to th e p ro s p erity an d s a fet y o f p e o p le , to th e p ro te ctio n o f th e en vi ro n m e nt. O u r p e o p le are o u r mo st i m po r t a n t as s e t and th ere f o re w e p lac e o u r u pm os t a tte ntio n to th e ir h e a lth , s a fet y a n d w e llb e ing , as w e ll a s to th eir c o n t i n u o u s training and d e ve lo p me n t. Th ro u gh a v arie ty o f e mp lo y e e initiative s , w e b u i l d te amw o rk a nd cre a te a s af e a nd en j o y a b l e w o rk ing e nv iro nme nt.

En gin eers a n d Na v a l A rc h itec ts , on e c ertified C h emis t a n d a Ph D C omputer S c ien c e devel oper, a re a l l in v ol ved in th e devel opmen t a n d a ppl ic a tion of th e a bove tec h n ol ogies a n d s ys tems , wh ic h a re in l in e with D a n a os ’ ma teria l c ommitmen t to our S us ta in a bil ity a n d En v iron men ta l pol ic ies . I n 2 0 1 9 we c on tin ued to improve our performa n c e in k ey a rea s s uc h a s empl oyee a n d c rew tra in in g (5869 tra in in g h ours ), n ea r mis s reportin g (2 1 3 reports ), s pil l a ge rec ord (z ero s pil l s ), a s wel l a s en v iron men ta l performa n c e a s in dic a ted by th e c on tin ued dec rea s e of Hea v y F uel Oil us e, C O 2 emis s ion s , S Ox emis s ion s a n d NOx emis s ion s . We a re a l s o pl ea s ed th a t more empl oyees pa rtic ipa ted in v ol un teerin g a c tion s a n d we ma in ta in ed our s upport to s oc ia l in itia tives . T h is yea r we a re s ettin g even more a mbitious goa l s wh ic h s h owc a s e our c ommitmen t to s us ta in a bil ity a n d its in tegra tion in our everyda y a c tiv ities a n d c orpora te s tra tegy. T h is report des c ribes a l l th e a bove in a tra n s pa ren t a n d c redibl e ma n n er a n d s h owc a s es our s us ta in a bil ity s tra tegy.

Th e pro t ectio n o f th e ma rine e nv iro nme nt fro m i n c re a s ing le ve ls o f p o llu tio n a nd t h e redu c tio n o f C O 2 e mis s io ns lie a t th e h ea r t o f D a na o s ’ s ag e nd a. W e a re f u ll y em b ra c i n g ne w te ch no lo g ie s th at imp rove ves s el s ’ en erg y e f f icie ncy and d e ve lo p in g ec o -fri en d ly te ch no lo g ie s . O u r in- h o u s e Res ea rc h and D e ve lo p me nt d e p ar tme nt, c o n si st i n g o f th re e qu alif ie d M e ch anica l

T h e M a n a gemen t T ea m of D a n a os S h ippin g

7


DANAOS SHIPPING CO. LTD

Danaos meets IMO 2030 carbon intensity targets 11 years ahead, by achieving 41.5 % reduction in CO2 emissions per ton*miles for year 2019 compared with base year 2008! T he fi rs t t a rg e t w a s a ch i e ve d !

CO2

guided a c c ordin gl y in order to s tric tl y fol l ow th e pl a n .

Th ro u gho u t th e y e a rs f ro m 2 0 0 8 to 2 0 1 9 , t h e a vera g e car r y ing cap a city o f th e f le et ha s i n c re as e d , s e vera l o p timiz atio n s ha ve b een car rie d o u t in o rd er to mak e t h e vess el s mo re e f f icie nt a nd a lo ng w it h t h e ec o n o m ie s o f s cale e f f e ct s timu la te d b y t he a dd itio n o f ne w b u ild ing ve s s e ls i n t h e fl eet , th e o p eratio nal p erf o r mance i n di c a t o r o f th e D anao s F le e t, h as s i gn i fi c a n t ly imp rove d .

The n ec es s ity for ev a l ua tin g th e in ves tmen ts ma de l ed to th e c rea tion of a s ma rt opera tion a l pl a tform (WA V ES ) th a t a n a l yz es a n d proc es s es da ta a s a dec is ion ma k in g s upportin g tool , wh il e it produc es a utoma tic a l erts in th e even t of dev ia tion s from th e optima l opera tion , th ereby a l wa ys en s urin g c l os e mon itorin g a n d timel y a n d effec tive res pon s e to a n y probl em.

Al o n g w ith ne ce s s ar y mo d if icatio ns/ o pt i m i z a t i o ns p erf o r me d o n th e main en gi n e i n o rd er to s u p p o r t s p e e d redu c t i o n , D anao s h as e x a mine d 3 8 en ergy eff icie ncy imp rove me nt me th o d s a n d i n veste d in s e vera l o f th e m s u ch as b u l b o u s b ow o p timiz a tio n, p ro p e ller ret ro fi t , l ow f rictio n p aints , p ro p u ls ion i m provem e nt d e v ice s , d raf t incre a s e a nd o t h ers . . Mo re over , D a na o s f u lly s u p p o r ts Sea Ro u t i n g o p timiz a tio n and ve s s e ls are

T h e result o f th e a bove strategy , wa s fo r Da n a o s to be fully in lin e with I M O guidelin es a n d targets, h a vin g reach ed th e 2030 go als well in adv an ce! I n th e mea n time Da n a o s h as taken th e n ext steps, to in vestiga te a ltern a tive fuels fo r sh ippin g an d wo rk fur th er o n o ptimiz a tio n s a imin g a t a ch ievin g h igh er emissio n reductio n , wh ile en surin g align men t with va rio us strict ca rbo n n eutra lity in itia tives such a s th e P o seido n P rin ciples.

8


SUSTAINABILITY REPORT 2019

Environmental report - Sustainability report

CONTENTS M e s s a g e f rom t h e C omp a n y ’ s M a n a gemen t D a n a os me e t s 2 0 3 0 C O2 t a rget 11 years ah ea d A b ou t t h e S u s t a i n a b i li t y R e po rt 2019 W h o w e a re O u r G o al - O u r V is io n – O u r V a l ues O u r F le e t O u r E mp lo y e e s F ina ncial I nf o r ma tio n E th ics & C o rp o ra te G over nance O u r T e ch nica l D e p ar tme nt O u r R & D D e p ar tme nt O u r P o licie s a nd C er tif ica tio ns O u r P rincip le s f o r P ro te ctio n of th e En v iron men t O u r A w a rd s and D is tinctio ns S u p p ly C h ain En g a g i n g w i t h Emp loy e e s , S o ciety a n d Academic Co mmun ity E mp lo y e e F u nctio ns R u nning a nd S p o r ting E ve nts S u p p o r ting th e C o mmu nity U nivers ity a nd S tu d e nt V is its Ou r A p p ro a ch t o S u s t a i n a b i lity a n d Co rpo rate R espo n sibility S ta k e h o ld er E ng a g e me nt O u r M a terial I s s u e s M ateria l I s s u e : O ccu p a tio na l H ea l th a n d S a fety M ateria l I s s u e : T ra ining and E d uc a tion M ateria l I s s u e : E nerg y C o ns u mption M ateria l I s s u e : W a s te and S p ill M a n a gemen t M ateria l I s s u e : E mis s io ns M ateria l I s s u e : E nv iro nme ntal C ompl ia n c e M ateria l I s s u e : E merg e ncy P re p a redn es s M ateria l I s s u e : R is k M anag e men t M ateria l I s s u e : A u d its , I ns p e cti on s a n d S urveys A ct i on s a n d Fu t u re G o a ls Ou r C o mmi t me n t t o t h e U N S ustain a ble Develo pmen t Go a ls G R I S t a n d a rd s I n d e x

7 8 10 11 13 14 16 17 17 18 19 19 20 22 25 26 27 28 31 32 36 37 40 43 44 47 50 53 55 56 57 57 60 62 64

I n t ro 70 R e g u la t o r y u p d a t e 72 O u r P ro j e ct s 74 Online d ata a cqu is itio n & p ro ces s s ys tem 76 W ave s 78 R e tro f its & O p timiz atio ns 86 W ater B alla s t T re atme nt 88 M R V & I M O D C S E mis s io ns R e p ortin g 90 Ex h a u s t G a s C le a ning S y s te ms 92 IM O 2 0 2 0 : F u e ls 96 L ow F rictio n A ntif o u ling P aints 97 H az a rd o u s M a terials 98 O u r En v i ron me n t a l P er f or ma n ce 100 Ou r E mis s io ns 102 Ou r E mis s io n KP I S S u mma r y 106 Ou r B u nk ers 108 Energ y e f f icie ncy o p era ting ind ex (EEOI ) 115 O u r f le e t ’ s O p era t i o n a l P rof i le (2018 v s 2019) 118 D a n a o s En erg y Ef f i ci e n cy I n dex 119 E n v i ron me n t a l S h i p p i n g I n d e x (ES I ) 122

9


DANAOS SHIPPING CO. LTD

A BO U T THE SU S T AINABILIT Y REP ORT 2019

Aim

Applica tio n o f th e Glo ba l R epo r tin g I n itiative (GR I )

Th e a i m o f th e p re s e nt s u s ta ina b ility re p o rt i s t o i n fo r m a ll s tak e h o ld ers a b o u t o ur s u s t a i n a b ility p erf o r mance , in a co mp le t e a n d c o m pre h e ns ive manner .

T h is is D a n a os S h ippin g’s fourth S us ta in a bil ity R eport a n d th e th ird report prepa red in a c c orda n c e with th e guidin g prin c ipl es of th e Gl oba l R eportin g I n itia tive (GR I ) S ta n da rds .

T a rge ts an d R e p or t i n g P eri od of t h e Su s ta i na b i l i t y R e p or t

Co n ta ct fo r th e R epo r t

O u r Su st a ina b ility R e p o r t analy s e s th e s t ra t egy and th e annu a l actio ns o f the C o m pa n y in th e p illa rs o f S u s ta ina b ility , E n vi ro n m e nt, S o cie ty , o u r E mp lo y e e s a nd E c o n o m y / G over nance f ro m J a nu a r y 1 s t t o Dec em b er 3 1 s t 2 0 1 9 . I t a l so inclu d e s o u r co mmitme nts rega rdi n g th e p rincip le s and th e s trate g y o f Da n a o s S h ip p ing o n S u s ta ina b ility , an d t h e pro gre s s a ch ie ve d b a s e d o n th e g o al s s et i n o u r p re v io u s S u s tainability R e p o r t.

F or a n y furth er q ueries c on c ern in g th e S us ta in a bil ity R eport a n d our S oc ia l R es pon s ibil ity I n itia tives for 2019, you ma y c on ta c t us a t s us ta in a bil ity@ da n a os . c om.

I n thi s C h a p t er G R I 1 02- 5 0 G R I 1 02- 5 2 G R I 1 02- 5 3

10


SUSTAINABILITY REPORT 2019

W HO W E ARE

Exper ts in sh ippin g

Da n a o s Sh ip p ing is th e e x clu s ive M a na g er o f DAN AO S C o rp o ra tio n ( D A C ) . D A N A OS C o rpo ra t i o n is a le a d ing inter natio nal ow n er o f co nta iner s h ip s w h o d e p lo y s its c o n t a i n er s h ip f le e t mainly u nd er mu ltiy e a r c h a r t ers w ith majo r liner co mp anie s t h a t o pera te re g u lar ly s ch e d u le d ro u tes b et w een l a rg e co mmercia l p o r ts . Fo u n ded in 1 9 7 2 , D anao s S h ip p in g ha s deve lo p e d into a w e ll- s tru ctu red o rga n i z a t i o n, p u tting e mp h as is on t ec h n o l o gi cal s o lu tio ns to o p timiz e th e m a n a gem e nt o f its ve s s e ls .

With a l on g h is tory of opera tin g a n d in ves tin g in th e s h ippin g in dus try, D a n a os S h ippin g ma n a ges on e of th e l a rges t in depen den tl y own ed fl eet of modern , l a rge- s iz e c on ta in ers h ips . Our dedic a tion to in n ov a tion , s a fety, effic ien c y a n d en v iron men ta l res pon s ibil ity h a s h el ped us forge our reputa tion a s th e l ea din g prov ider of c on ta in ers h ip ma n a gemen t s erv ic es in th e worl d. Ackn owledged in n ova to rs D a n a os S h ippin g h a s been widel y recognized for its operational performance, tec h n ol ogic a l in n ov a tion , h igh opera tion a l standards and commitment to sustainability. T h is rec ogn ition a l s o a c k n owl edges th e c ompa n y’s dedic a ted ma n a gemen t, s tron g work eth ic a n d s us ta in a bl e devel opmen t a mbition s . En viro n men tally active En v iron men ta l s us ta in a bil ity is a priority a s we l ook to th e future. We c on s ta n tl y empl oy th e h igh es t opera tin g s ta n da rds on boa rd to en s ure a n eth ic a l , s a fe a n d pol l ution free en v iron men t for our peopl e, th e c ommun ity a n d th e ma rin e l ife overa l l .

I n th is Ch a pter GR I GR I GR I GR I

11

102- 1 102- 2 102- 4 102- 6

GR I GR I GR I GR I GR I

102- 7 102- 11 102- 13 102- 16 102- 45


DANAOS SHIPPING CO. LTD

C O M P ANY MILES T ONES

J ohn began to implement a strategy focused on acquiring large, modern containerships which would then be chartered to international liner companies. When John assumed the position of CEO, the DANAOS fleet consisted of three bulk carriers. In the early 1990s, John began to dramatically expand the fleet, beginning with the acquisition of 7 2,700 TEU containerships, which were subsequently leased to the Korean company Hanjin on long-term charters.

1963 - 1976

During the early1960’s Dimitris Coustas was drawn towards shipping and began making his first investments. In 1963 he purchased his first ship, a 3,600 dwt single-deck freighter that he subsequently renamed “Amalia” to honor his wife, Amalia Coustas. By 1966, Dimitris, along with a b u s i n e s s p a r t n er, ow n e d 3 ve s s e ls . I n 1 9 7 2 , D i mi t r i s a s s u me d s o le con t ro l o f t h e co mp a n y , w h i ch b e g an o p era t i n g a s D a n a o s S h i p p i n g, a n e n t i t y t h a t s u rv i ve s t o t h is d a y a nd a c t s a s o u r op era t i o n s ma n a g er. T hre e y e ars la t er , t h e f le e t t o t a le d 5 ve s s e l s w i t h a n a g rg e g a t e ca p a ci t y o f 3 5, 000 to n s .

1993 - 2005

DANAOS’ containership capacity grew at a 32% annual compound rate from 1993 to 2005. This growth occurred through multiple shipping cycles and was aided by the broad range of relationships we have developed and the quality of service provided to our customers, as well as our ability to exploit market opportunities during periods when there have been lower market demand and prices for containerships. Shipping operations were consolidated under a single entity in 1998. Our name was changed to DANAOS Corporation in connection with our incorporation in the Republic of the Marshall Islands in 2005.

1977 - 1986

B y 1 981, D i mi t r i s C ou s t a s h a d re d u ce d the c o m pan y ’ s f le e t t o a s i n g le ve s s e l, ‘ Jo hn, ’ n a me d a f t er h i s s on . H e pro c e e d e d t o ord er t h re e n e w ve s s e ls, w hi c h w ere d e li vere d i n 1 9 8 4 . I n 1 9 8 6 , D A N A OS M a n a g e me nt C o n s u lt a n t s w a s co-f ou n d ed by D r . J o h n C o u s t a s . T h is c o mp a n y h a s b e e n re s p on s i b l e fo r t h e cre a t i on of i n n ov a t i ve a n d d y n a mi c ve s s e l n a v i g a t i on a n d ma n a g e me n t s y s t e ms t h at a re d e p lo y e d t h ro u g h ou t t h e industry.

On October 6, 2006, DANAOS Corporation began trading on the New York Stock Exchange under the symbol ‘DAC.’ Since then, DANAOS’ fleet has grown from 27 containerships with an aggregate capacity of 116,115 TEUs to 61 containerships with an aggregate capacity of 372,769 TEUs as of today. This includes five vessels acquired by Gemini Shipholdings Corporation, in which DANAOS holds a 49% equity interest.

2006 - Present

1987 - 1992

D A NA O S C o rp o ra t i on p r i d e s i t s e lf o n ha vi ng a d i s t i n ct e d g e i n t e ch n olo gy a nd i nfo rma t i o n s y s t e ms . T o t h i s d a y, o u r a ffi l i at e s of t w a re h ou s e D A N A O S Ma na ge m e n t C o n s u lt a n t s i s re g a rd e d as a w o r l d l e a d er i n t e ch n olo g y s olu t i o n s fo r t h e s h i p p i n g i n d u s t r y . I n 1 9 8 7 , D i mi t r i s C o u s t as a p p oi n t e d h i s s o n , D r . J o h n C o u s t a s a s M a n a g i n g D i re ct or a n d C EO of D A N A O S A f t er a s s u mi n g ma n a g e me n t of D A N A OS ,

12


SUSTAINABILITY REPORT 2019

O u r Go al - Our Vision – Our Values

O u r go a l is to p rov id e o u r cu s to mers w i t h t he h ig h e s t qu ality o f s erv ice w h ile fo c u s i n g on th e s af e ty o f o u r cre w a nd the pro t ec t i o n o f th e e nv iro nme nt. We seek t o p rov id e s a f e , e f f icie nt a nd co s t effec t i ve s e abo r ne co nta iner t ra n spo r t a tio n a nd re main th e prem i er c h o ice o f co nta iners h ip ow n ers . To me e t th is g o a l, w e c o n t i n u o u s ly ma k e s u bs ta ntia l i n vest m en ts in o p era tio na l, t ec h n i c a l a nd f ina ncial i n fra s t ru c tu re w h ile s triv ing fo r en vi ro nme ntally f rie nd ly solutions. We a re c o mmitte d to co nd u cting o u r b u s i n e s s w ith h ig h e th ica l s t a n da rds and th e C o mp any c o n s i ders th a t e f f e ctive C o rpo ra t e G over nance is an i m po r t a n t p ar t to th e co rp o ra te s u c c ess a nd th e e nh a nce me nt o f sha reho ld er v alu e . B ei n g t he e x clu s ive ma na g er o f D A N A OS Corporation (DAC), Danaos Shipping follows a n d a b i des b y th e C o d e and th e C o rp o ra t e Governance Guidelines of DAC. The purpose o f t h e C o d e is to u p h o ld th e re p u ta tion

8 x 2 ,2 0 0 T E U

2 x 5 ,5 0 0 T E U

2 x 9 ,6 0 0 T E U

3 x 2,500 TEU

a n d in tegrity of D A C , its s ubs idia ries a n d its a ffil ia te C ompa n y th a t a re v a l ua bl e a s s ets , v ita l to th e C ompa n y’s s uc c es s . No C ode c a n repl a c e th e th ough tful beh a v ior of a n eth ic a l empl oyee. T h e purpos e of th is C ode is to ra is e empl oyee awa ren es s on a rea s c on c ern in g eth ic a l ris k , prov ide guida n c e to h el p empl oyees rec ogn iz e a n d dea l with eth ic a l is s ues , prov ide mec h a n is ms for empl oyees to report un eth ic a l c on duc t, a n d fos ter a mon g th em a c ul ture of h on es ty a n d a c c oun ta bil ity. Our F leet T h e D a n a os S h ippin g ma n a ged fl eet is repres en ted by modern a n d h igh - q ua l ity ves s el s . M a n y of our c on ta in ers h ips were buil t in th e l a s t s even yea rs , us in g th e mos t upda ted des ign in n ov a tion s , a n d a l l en j oy a reputa tion for s a fety a n d rel ia bil ity in th e in dus try. A t th e momen t, we ma n a ge 6 1 c on ta in er ves s el s ra n gin g from 2 , 2 0 0 T EU to 13, 100 T EU.

8 x 3 , 4 0 0 T EU

9 x 6 , 5 0 0 T EU

10 x 4 , 3 0 0 T EU

11 x 8 , 5 0 0 T EU

3 x 1 0 , 1 0 0 T EU

13

5 x 13, 100 T EU


Our Global Operations

EUROPE

USA

US - WEST COAST

362 calls

USA EAST COAST

US GULF COAST

CENTRAL AMERICA

CARIBBEAN

WEST AFRICA

Brazil

153 calls LATIN AMERICA

SOUTH

• FAR EAST - JAPAN • USA EAST COAST - FAR EAST • NORTH EUROPE - PERSIAN GULF INDIA SUBCONTINENT

• USA - LATIN AMERICA • FAR EAST SOUTH AFRICA • FAR EAST 14 EAST COAST AFRICA

• SOUTH EAST ASIA - AUSTRALIA - NEW ZEALAND • EUROPE - SOUTH AFRICA • US WEST COAST - CENTRAL AMERICA


NORTH EUROPE

China

Egypt

PERSIAN GULF

JAPAN

875 calls FAR EAST

CHINA

136 calls

Taiwan

136 calls INDIA

SOUTH EAST ASIA Malaysia

311 calls

Singapore

287 calls

Australia

EAST COAST AFRICA

126 calls

AUSTRALIA

AFRICA

NEW ZEALAND

• NORTH EUROPE -SOUTH AFRICA • SOUTH EAST ASIA - JAPAN

• ASIA - WEST AFRICA • US-WEST COAST - AUSTRALIA - NEW ZEALAND 15

• CHINA- SOUTH EAST ASIA • US GULF COAST- CARIBBEAN • NORTH EUROPE - AUSTRALIA VIA SUEZ


DANAOS SHIPPING CO. LTD

I n thi s C h a p t er G R I 102- 8 G R I 401- 1

Our Employees

O u r em pl o y e e s are th e h e ar t o f o u r b u s ine s s a n d a l l our s uc c es s es a re th e res ul t of th e c ommitmen t of ea c h a n d e ver y e mp lo y e e . I n re co g nitio n of th is , we s trive to prov ide our empl oyees with a top- q ua l ity w o rki n g en v iro nme nt, a ttractive and co mpetitive rewa rd s c h emes a n d tra in in g progra ms th a t a dv a n c e t h ei r pro fe s s io nal a nd p ers o nal d e ve lo p men t.

Health, safety and wellbeing

Attractive reward Schemes

OUR PRINCIPLES FOR EMPLOYEES’ WELL BEING

Informed employees

Encourage personal and professional development

Training and evaluation

Equal opportunities

T o t a l N u mb er of Emp lo y e e s Year

Crew on Board

Staff Ashore (Greek Office)

Staff Ashore (All Offices)

2017

1284

137

196

2018

1164

139

195

2019

1284

139

198

T o tal nu mb er o f e mp lo y e e s 2 017- 2019 2017

2018

2019

137

139

139

MSc

43.8%

47.5%

45.3%

BSc

33.6%

43.2%

44.6%

Secondary Education

22.6%

15.8%

10.1%

Total Number of Employees (Offices) Educational Level of Employees

Education

2017

2018

2019

Female Employees

40.1%

40.3%

40.3%

Male Employees

59.9%

59.7%

59.7%

Employee Turnover

7.3%

3.6%

10.1%

Employee Hiring

5.1%

5.0%

10.1%

HR st at ist ic s in c lude emp l oye e e d u c a ti on a l l e ve l , g e n d er a n d n e w re c ru i tm e n ts

16


SUSTAINABILITY REPORT 2019

F in a ncial Information DAN O S SH I P P I N G h as b u ilt a s tro ng re p uta tion in th e s h ippin g c ommun ity by prov idin g c us tomiz ed, hi gh q u a l ity o p eratio nal s erv ice s in an effic ien t ma n n er for both n ew a n d ol der ves s el s . D a n a os Sh i ppi n g p rov id e s D A N A O S C o rp o ratio n (D A C ) with tec h n ic a l , a dmin is tra tive, a n d c erta in c ommerc ia l s ervi c es. T h e p ro f ita b ility o f D anao s S h ippin g a n d growth a re ma teria l l y l in k ed to th e opera tion of DAC fro m wh ich th e C o mp a ny d erive s a ll of its reven ue. T h e fin a n c ia l s ta temen ts of D a n a os S h ippin g a re a u di t e d o n an a nnu al ba s is by P ricewa terh ous eC oopers S . A . , a n in depen den t regis tered publ ic a c c o u n t i n g f ir m. T h e a u d its co nd u cte d by Pric ewa terh ous eC oopers S . A . a re in a c c orda n c e with I n t er n a t i o nal S ta nd a rd s o n A u d iting ( I S A s ), wh il s t th e C ompa n y’s fin a n c ia l s ta temen ts a re prepa red i n a c c o rda nce w ith I nter natio nal F inancia l R eportin g S ta n da rds a s a dopted by th e Europea n Un ion a n d t h e req u i re me nts o f th e C y p ru s C o mp ani es Law, C a p. 113 wh ic h th e C ompa n y is s ubj ec t to a s it h a s b een i n c o rp o ra te d p u rs u ant to th e law s of C yprus .

E th ic s & Corporate Governance Ha v ing e s ta b lis h e d s ta n da rd opera tin g proc edures , we h a ve c rea ted a c c oun ta bil ity a nd a cu ltu re o f co mpl ia n c e th rough out our orga n iz a tion . T h is h el ps us en s ure G R I 1 02- 5 th at o u r o p eratio ns are c on s is ten t with en v iron men ta l a n d s a fety l aws , regul a tion s G R I 1 02- 1 8 a nd re qu ire me nts . W e ha ve devel oped a n d impl emen ted proc edures for iden tifyin g, i n t erpret i ng and e f f e ctive ly co mmu nica tin g c ompl ia n c e is s ues to our s h ore- ba s ed a n d on boa rd pers o n n el . I n thi s C h a p t er

O u r em pl o y e e s , ve nd o rs , a g e nts , te ch nicia n s , c on tra c tors a n d c on s ul ta n ts in v ol ved in th e ma n a gemen t o r o pera t i o n o f o u r ve s s e l are e nco u rag e d to report a n y en v iron men ta l v iol a tion s or s a fety c ompl ia n c e i ss u es di re ctly to th e C o mp any . We provi de a s af e s y s te m f o r a ny o ne w h o wis h es to report a n en v iron men ta l v iol a tion to th e C ompa n y i n go o d fa i th . How e ver , w e re ta in th e rig h t to dis mis s a n y empl oyee or c rew member on boa rd a n y of t h e s hi ps u nd er o u r ma na g e me nt f o r v io la tion of th e C ompa n y’s en v iron men ta l protec tion pol ic ies or a ppl i c a b l e inter na tio na l ru le s a nd law s . We h a ve es ta bl is h ed proc edures for th e rec eipt, rec ordin g, i n vest i ga t i o n, e v alu atio n, re p o r ting and cl os in g of s uc h reports . T h e on l in e reportin g c a pa bil ity does n o t su b st i tu te th e C o mp a ny ’ s s y s te ms for reportin g n on - c on formities , a c c iden ts , n ea r mis s es or o t h er n o n - co mp liance e ve nts . R ath er , it c ompl emen ts a n d/ or s uppl emen ts th e C ompa n y’s reportin g s y s t em s. Th e fo l l ow ing o rg a niz a tio n ch ar t d e s cribes th e D a n a os S h ippin g C ompa n y s truc ture:

17


DANAOS SHIPPING CO. LTD

Co d e an d P o l i c i e s

Our T echnical Depar tment

Da n a o s Sh ip p ing is co mmitte d to e th ica l b eha vi o r a nd v a lu e s . A mo ng s t its f irs t pri o ri t i es is to e s ta b lis h a co rp o rate a n d w o rking cu ltu re th at e nh ance s the va l u e o f e th ics and p ro mo te s ind iv id u a l respo n si b ility . T o th is e f f e ct, th e C o mp a ny fo l l ow s a n d a b id e s w ith th e C o d e of B u s i n ess C o nd u ct and E th ics , th e C o de o f C o n du c t & E th ics f o r C o rpo ra t e O f f icers & Di rec t o rs , th e E th ics a nd C o m pl i a n ce P o licy , and t h e An t i - F ra u d P o licy ( c o l l ec t i ve ly th e “ C o d e ” ) , w hi c h set th e h ig h e s t s t a n da rds f o r p ers o nne l c o n du c t re la te d to e th ical b eha vi o r and aler tne s s . Th e c o r ners to ne in preven t i n g f rau d and a ntic o r ru pt i o n is th e cre atio n o f a n en v iro nme nt th a t fo st ers m orality , inte g rity a n d b u si n e s s co nd u ct. I n devel o pi n g th e C o d e , w e ha ve t a k en into a cco u nt th e te n p rincip le s o f t he Unite d N a tio ns G lo b a l C o mp a ct a b o u t l a b o r , e nv iro nme nt, anti- co r ru p tion a n d hu m a n rig h ts .

Our T ec h n ic a l D epa rtmen t is res pon s ibl e for th e tec h n ic a l ma n a gemen t of our fl eet, prov idin g a dv a n c ed mon itorin g a n d k n owl edge on a l l rel ev a n t a s pec ts . T h e ul tima te goa l s of our T ec h n ic a l D epa rtmen t a re th e h igh ves s el util iz a tion , c os teffec tive effic ien c y a n d th e promotion of en v iron men ta l awa ren es s . We empl oy on e of th e l a rges t tec h n ic a l depa rtmen ts worl dwide a n d we a re a mon g th e h igh es t ra n k ed c ompa n ies in top un ivers ity gra dua tes ’ empl oymen t with rega rd to s uperin ten den t/ ves s el ra tio (3 empl oyees per fl eet, for s ix ves s el s on a vera ge). Our tea ms a re s ubdiv ided in to s ma l l er groups a s s ign ed to pa rtic ul a r ves s el s . T h is s truc ture, wh ic h h a s been tes ted over a l on g period of time, h a s del ivered th e h igh es t K PI s a n d uptime in a dema n din g s h ippin g in dus try. Our s uperv is ory s ys tem is en h a n c ed by mon itorin g, orga n iz a tion a l a n d a n a l ys is s oftwa re a n d h a rdwa re. T h e c ore of our fl eet mon itorin g s ys tem, En terpris e, is a n in tegra ted s oftwa re s ys tem devel oped in - h ous e wh ic h in c l udes a v a riety of modul es , s uc h a s th e ema il ex c h a n ge c en ter, th e pl a n n ed ma in ten a n c e s ys tem, th e s pa res a n d s uppl ies , th e c rewin g, th e opera tion s a n d th e I S M a dmin is tra tor. C ol l ec tin g da ta from a n on l in e da ta a c q uis ition a n d proc es s s ys tem, c a l l ed th e WA V ES Bus in es s I n tel l igen c e a n d A n a l ys is Pl a tform, s upports th e on l in e mon itorin g s ys tem a n d th e big da ta a n a l ys is .

E m pl o y ees re ce ive p erio d ic tra ining on t h e c o n t ents and imp o r ta nce o f th e C o d e, rel a t ed policie s , a nd th e ma nner in w h ich vi o l a t i o n s mu s t b e re p o r te d and w aivers m u st b e re qu e s te d . E ach e mp lo y e e o f the C o m pa n y cer tif ie s o n a n a nnu al b a s is th a t t h ey a re i n f u ll co mp liance w ith th e C o de a n d rel a t ed p o licy s tate me nts .

A l l th e h a rdwa re a n d s oftwa re fa c il ities men tion ed a bove a re c on s ta n tl y upda ted a n d buil t on s ta te- of- th e- a rt tec h n ol ogies , h el pin g to fos ter th e D a n a os S h ippin g l ea din g pos ition of tec h n ic a l a n d operational expertise. Through technology, s uperin ten den c e is a ppl ied to th e h igh es t l evel v ia en h a n c ed a n a l ys is , effec tive troubl es h ootin g, probl ems ’ predic tion or detec tion a n d rea c tion wh ic h c on tributes to min imum down time a n d opera tin g ex pen s es .

Spec i fi c a l l y , th e C o rp o rate G over na nc e G u i del i n es inclu d e th e f o llow ing : • Da n a o s C o rp o ratio n A nti- f ra u d P o licy • C o de o f Bu s ine s s C o nd u ct & E th ics • C o de o f C o nd u ct & E th ics f o r C o rp o rate O ffi c ers & D ire cto rs • E t h i c s & C o mp liance P o licy I n 2 0 1 9 th ere w ere no f ine s f o r no nc o m pl i a n c e w ith s o cia l and e co no mic laws a n d regu l a tio ns co ncer ning p rov is io n a nd u s e o f pro d u cts a nd s erv ice s .

18


SUSTAINABILITY REPORT 2019

Our P olicies and Cer tifications

Th e go a l s o f o u r O p eratio ns and T e ch nica l depa r t m en t a re re late d to d e ve lo p ing s ta t e o f t he a r t s y s te ms and tra ining e mp lo y e es a c c o rdi n gl y and a t th e s ame time s ta y ing u p-t o -da t e w ith a ll ne w te ch no lo g ie s an d regu l a t i o ns , aiming a t co ntinu ing o n a b et t er en v iro nme nta l p erf o r ma nce . To a c hi eve t h e s e g o a ls , th e W A V E S s y s te m a n d a n i n te g rate d s y s te m a re alre a d y in u s e o n a ll o u r ve s s e ls. Da na os S hi ppi ng is A ls o , a p ar t f ro m o ur 8 , 1 0 0 T E U ( w ith in 2 0 1 6 ), commi t ted o u r 1 0 , 1 0 0 T E U ( w ith in t o et hi cal 2 0 1 7 ) a nd o u r 6 , 5 0 0 T EU beha vi or ( w ith in 2 0 1 8 ) ve s s e l, o ur a nd va l ues 8 , 5 0 0 T E U J iang nan bu il t vess el s , 9 , 6 0 0 T E U S HI b u ilt & 1 3 , 1 0 0 T E U H SH I b u i l t ve s s e ls w ere f itte d w ith a new b u l b fo r b e tter p erf o r mance w ith in 2 0 1 9 . Th ro u gh fu r th er a lg o rith m analy s is w e w il l c over m o re o f o u r s ta k e h o ld ers ’ ne e d s , as w i l l t he deve lo p me nt o f ne u ral s y s te ms . At t h e sa m e time , co ntinu o u s p erf o r ma nc e m o n i t o ri n g a nd e v alu atio n o f a ll o ur c o m pl et ed mo d if icatio n w o rk w ill f u ll y q u a n t i fy t h e re d u ctio n in e nv iro nme ntal em i ss i o n s a nd f u e l e f f icie ncy .

Res pon s ibil ity Pol icy We h a ve es ta bl is h ed s ta n da rds a n d proc edures to ma k e s ure th a t a l l ves s el s un der ma n a gemen t c ompl y with a l l ma ritime en v iron men ta l req uiremen ts s et up un der a ppl ic a bl e in tern a tion a l , fl a g s ta te a n d port s ta te l aws . A mon g oth ers , th is in c l udes : • A l l Un ited S ta tes ’ federa l a n d s ta te s ta tutes a n d regul a tion s • T h e S a fety of Life a t S ea C on ven tion (S OLA S ) • T h e I n tern a tion a l C on ven tion for th e Preven tion of Pol l ution from S h ips (M A R POL) • T h e I n tern a tion a l S a fety M a n a gemen t (I S M ) C ode • T h e I n tern a tion a l S h ip a n d Port F a c il ity S ec urity (I S PS ) C ode • T h e Ba l l a s t Wa ter M a n a gemen t C on ven tion • S ta n da rds of T ra in in g, C ertific a tion , a n d Wa tc h k eepin g for S ea fa rers (S T C W) C on ven tion • T h e M a ritime La bour C on ven tion , 2006 • I n tern a tion a l a n d n a tion a l l y a dopted l ow s ul ph ur req uiremen ts

O ur R &D Dep ar tmen t O ffi c i a l l y e s ta b lis h e d in 2 0 1 1 , o u r R & D depa r t m en t f alls u nd er th e u mb re lla of t h e Tec h n i cal D e p ar tme nt. O u r g o a l is to b e a t t h e f o re f ro nt, g e nerating innov ative c o n c ept s a nd d e ve lo p ing o u r k now le d g e a n d c o m pe te ncie s to ad d re s s o u r clie nts’ n eeds i n a ch ang ing a nd e v o lv ing ma ritime en vi ro n m e nt. W e a p p ly o u r k now le d g e a nd t ec h n i c a l e x p er tis e to imp rove o u r f le e t’s fu el effi c ie ncy and o u r e nv iro nme ntal perfo r m a nce , th u s maintaining o ur c o m pet i t i ve ad v antag e a nd le a d ers h i p po s i t i o n i n th e s h ip p ing ind u s tr y .

E n viron men tal Pol icy E n viron men tal Man agemen t Sy s tem

At t h e sa m e time w e ta k e p rid e in o ur t ec h n o l o gi cal e x p er tis e w h ich s p a ns f ro m a c o m pl ex o p era tio na l ch a in f ro m ad v anced s y s t em s to p erf o r mance imp rove me nts . E a c h o f o u r te ch no lo g ica l initia tives provi des us w ith th e p o te ntial to minimiz e t h e en vi ro nme nta l imp a ct o f s ig nif ican t s hi ppi n g o p eratio ns w o r ld w id e w ith o ut c o m pro m i s ing o u r p erf o r mance .

Danaos Shipping shares the commitment to a clean, healthy and sustainable environment for the whole community. We therefore take all appropriate measures to ensure that environmental safety will not be put at risk as a result of our business activities.

19


DANAOS SHIPPING CO. LTD

O ur P rin cip les f o r Pro tection of the Environment Environmental Management System Reducing emissions R&D, Innovation Waste and spill management Optimization Energy reduction and efficiency Th e i m pl e me ntatio n o f e nv iro nme nta l pri n c i pl es into o u r co mp a ny o p era tio ns dem o n st ra te s th a t our p ers o nnel u n derst a n d , actio n, a nd s u p p o r t a s tro n g E n vi ro n m e ntal M a na g e me nt S y s te m ( E M S). Th ro u gh c ontinu o u s mo nito ring , e v a lu a tion and i m prove me nt of e nv iro nme nta l pro c ess es, in a d d itio n to ra is ing aw a ren ess and e mp lo y e e edu c a t i o n a l p ro ce d u re s , w e s trive t o b e a pi one er in minimiz ing a ny n ega t i ve i mp a ct o f inter na tio na l shipping towards the environment.

• I mproved opera tion a l effic ien c ies a n d ma in ten a n c e pra c tic es • En h a n c ed c orpora te ima ge a n d c redibil ity with a l l s ta k eh ol ders With in 2017, two more ves s el s were en rol l ed, h owever, on e of th em wa s ba reboa t c h a rtered in mid- 2 0 1 7 , l ea v in g the total number of vessels enrolled to four. T h e s a me a ppl ies for 2019. T h e four ves s el s s el ec ted a re of differen t s iz es c a tegories : (C M A C GM M ol iere 6 , 5 0 0 teu, C M A C GM M el is a n de 8, 500 teu, High wa y 2 2 0 0 teu, Ex pres s Berl in 10, 100 teu).

O u r c o m m i tme nt is to p ro mo te and est a b l i sh a s a f e a nd p o llu tio n- f re e o pera t i n g e nv iro nme nt o n bo a rd . To a c c o m p lis h th is , w e u s e o nly th e h ig h e st o pera t i n g p ra ctice s f o r e nv iro nme ntal pro t ec t i o n, s a f e ty , a nd qu ality is s u e s . We a spi re to imp rove o u r ma na g e me n t s y s t em s c ontinu o u s ly and to re a ch a h ig h l evel o f ex ce lle nce in a ll a s p e cts o f o ur b u si n ess t o e ns u re p o llu tio n and accid e ntfree o pera tio ns .

ISO 1 4 0 0 1 E n viron men tal Man agemen t D a n a os S h ippin g rec eived its firs t I S O 1 4 0 0 1 c ertific a tion in 2 0 0 8 a n d h a s ma in ta in ed it every yea r s in c e. D urin g 2 0 1 9 th e c ompa n y ra n its en v iron men ta l ma n a gemen t s ys tem for a th ird yea r run n in g, in c ompl ia n c e with th e l a tes t 2 0 1 5 rev is ion of th e I S O 14001 s ta n da rd, for wh ic h it h a s rec eived th e a ppropria te c ertific a tion . I t is a n immen s el y importa n t c ertific a tion , a s it pres en ts a n umber of ben efits for D a n a os S h ippin g:

IS O 5 0 0 0 1 En erg y M a na ge m e nt Th e C o m pa ny w as f irs t cer tif ie d in 2 0 1 6 . Th ro u gh t h e I S O 5 0 0 0 1 cer tif icatio n th ere a re m u l t i ple b e ne f its f o r D a na o s S h ip p ing , s u c h a s: • I n c rea s ed e nerg y aw are ne s s a mo ng s ta ff m em b ers at all le ve ls • Redu c ed g re e nh o u s e g as e mis s io ns a nd c a rb o n f o o tp rint • In c rea s ed e nerg y co s t s av ing s f o r th e o rga n i z atio n a nd ch ar terers alik e • In c rea s ed k now le d g e o f e qu ip me nt effi c i en c ie s

• I n c rea s es empl oyees ’ awa ren es s of th e en v iron men ta l impa c ts a s s oc ia ted with th eir da il y ta s k s • En s ures c ompl ia n c e with s ta tutory a n d regul a tory req uiremen ts • R educ es th e n umber of pos s ibl e en v iron men ta l defec ts durin g a port s ta te c on trol in s pec tion a n d/ or el imin a tes poten tia l fin es from n on c ompl ia n c e • Prov ides dis c oun ts on port dues

20


SUSTAINABILITY REPORT 2019

21


DANAOS SHIPPING CO. LTD

• PEM EN – Un ion of En gin eers of th e Greek M erc h a n t M a rin e • PEPEN – Un ion of M a s ters a n d M a tes of th e Greek M erc h a n t M a rin e • A M ER I C A N HELLENI C C HA M BER • PI R A EUS M A R I NE C LUB • GR EEK S HI PPI NG PUBLI C A T I ONS • BI M C O – Ba l tic a n d I n tern a tion a l M a ritime C oun c il • HELM EPA – Hel l en ic M a rin e En v iron men t Protec tion A s s oc ia tion • PEM M EK EN – Un ion of En gin eers of I n tern a l C ombus tion En gin es of Greek M erc h a n t M a rin e • C S S F (C on ta in er S h ip S a fety F orum)

• Im proves C o mp a ny re p u ta tio n and th e c o n fi dence o f cu s to mers • Ac h i eves s tra te g ic b u s ine s s aims b y i n c o rpo ra ting e nv iro nme nta l is s u e s into b u si n ess ma na g e me nt • P rovi des a co mp e titive a nd f inancia l a dva n t a g e th ro u g h e f f icie nt u s e o f m a t eri a l s and re d u ce d w as te • E n c o u ra g e s be tter e nv iro nme ntal perfo r m a nce o f s u p p liers by inte g ra ting t h em i n t o th e o rg a niz a tio n’ s s y s te m.

IS O 9 0 0 1 Qu alit y M a na ge m e nt Da n a o s Sh ip p ing w as f irs t cer tif ie d i n 2015.

Our Awards and Distinctions in 2019

Th ro u gh t h e I S O 9 0 0 1 th ere a re mu ltip l e b en efi t s for th e e mp lo y e e s , s u ch a s :

We h a ve c on s ta n tl y been rec ogn iz ed a s a pion eer in opera tion a l effic ien c y and tec h n ol ogic a l in n ov a tion s . The rec ogn ition s we h a ve rec eived s erve a s v a l ida tion a n d give us a dded in s pira tion to c on tin ue work in g to ma k e v a l ua bl e a n d mea n in gful c on tribution s to a more s us ta in a bl e, ec o- frien dl y future in th e s h ippin g in dus try.

• • • •

In c rea sed re liability o f s erv ice s G rea t er c o mp e titive ne s s P ro du c t i v ity imp rove me nt C o s t reductio n and p ro ce s s i m proveme nt • Dec rea se d p ro ce s s er ro rs • Upgra ded qu ality o f s erv ice s • E n ha n c ed cu s to mer s a tis f a ctio n.

A MVE R A w ards P ar t icip at i o n i n A s s o c i a t i o ns , Even ts and Orga ni z a t i o ns

Ex tra ordin a ry a c h ievemen ts in ma ritime safety were honoured at the annual Safety at S ea A wa rds in Lon don . T h e c eremon y, h el d a s pa rt of Lon don I n tern a tion a l S h ippin g Week 2019, s aw ma ritime c ompa n ies , c h a rities a n d in div idua l s rec ogn is ed for a c h ievemen ts in tra in in g, produc t des ign , s ea ma n s h ip a n d bra very. T h e a n n ua l S a fety

We a re a ctive ly s e e k ing th e p a r ticip a tion i n i n du st r y a s s o cia tio ns a nd co mmitte e s i n o rder t o c ontrib u te to th e ad v ance me nt of t h e shi ppi ng s e cto r th ro u g h th e e x ch a ng e of experi en c e and th e s u p p o r t and p ro mo tion o f su s t a i n a b ility and e nv iro nme ntal is s u e s . • UN I O N O F G R E E K S HI P O W N E R S – Represen ts G re e k - ow ne d co mmercia l ves s el s over 3 0 0 0 G T u nd er G re e k and o t her fl a g s • SY N -E N O S I S – T h e G re e k S h ip - ow ners so c i a l w e lf a re C o mp any • C Y P RUS U N I O N O F S HI P O W N E R S – T h e m a j o r rep re s e ntative o rg aniz atio n o f th e i n t er n a t i o na l S H I P P I N G co mmu nity w it h ves s el s und er th e C y p ru s f la g • MAL TA S HI P O W N E R S

22


SUSTAINABILITY REPORT 2019

is worth n otin g th a t Greec e a c h ieved true dis tin c tion a s th e firs t c oun try to ea rn more th a n 2 , 0 0 0 A M V ER A wa rds . D a n a os S h ippin g wa s a mon g th e th ree Greek c ompa n ies with th e mos t ves s el s on th e A M V ER s ys tem durin g th e pa s t dec a de a n d wa s h on ored with th e F idel ity A wa rd.

a t Sea Amver A w ard f o r S e ama ns h ip w as s ha red b y t h re e co mp anie s f o r th e ro le th a t t h ei r vess e ls a nd cre w s p aid in as s is tin g a l o n e s a i lo r , as h e e x p erie nce d a s erie s

21st Annual Marine Money Greek Ship Fin an ce Foru m T h e M a n a gemen t T ea m of D a n a os S h ippin g a tten ded th e 21s t A n n ua l M a rin e M on ey Greek S h ip F in a n c e F orum, wh ic h took pl a c e in Oc tober 2019 a t th e A th en s Hil ton Hotel . D r. C ous ta s a l on g with l ea din g S h ipown ers , dis c us s ed th e c h a n gin g Greek s h ippin g a n d th e fin a n c e l a n ds c a pe. He

o f m i s ha p s o n a jo u r ne y f ro m C abo S a n L u c a s, Mex ico to L o s A ng e le s in th e U S A. Da n a o s Sh ip p ing w a s o ne o f th e m w it h t h e i n vo l ve me nt o f M / V E x p re s s B er lin . C a pt a i n E v a ng e lo s L o u k a s a lo ng C ap ta i n Di m i t ri s V o u ra z e lis and C ap ta in G e o rge K a k o u ri s t rave le d to L o nd o n to a tte nd th e even t a n d re ce ive th e aw ard . T h e e ve nt w a s a perfec t re mind er th at s a f e ty is alw a y s the pri o ri t y , a n d th e o p p o r tu nity to re co g nis e t h e c o n t ri bu tio n o f o u r s e af arers f o r th e ir u n sel fi s h a nd b ra ve re s cu e s . Fu r t h er m ore , th e A mver A w ard s D inner, o rga n i z ed by T h e I nter natio nal P ro p e ller C l u b o f t h e U nite d S tate s , P o r t o f P irae u s, i n c o l l a b oratio n w ith th e U S E mb a s sy i n G reec e a nd th e U nite d S ta te s C o a st G u a rd, ho no re d 2 1 7 G re e k co mp a nie s . I t

emph a s iz ed on h ow th e regul a tion a n d th e c h a n gin g tra de pa ttern s , c oupl ed with th e v a ria bl e fin a n c e s ourc es a n d th e ba n k in g res tric tion s , h a ve a ffec ted th e wa y th ey s ee th eir bus in es s , c h oos e th eir bus in es s pa rtn ers a n d a n a l yz e th e ris k a n d rewa rd. D urin g h is pa n el dis c us s ion , M r. Ev a n gel os C h a tz is h igh l igh ted th e s ign ific a n t reduc tion in th e l en din g c a pa c ity of th e ba n k in g s ec tor a s th e Europea n ba n k s h a ve s ign ific a n tl y s c a l ed ba c k . T h e A s ia n c a pita l h a s bec ome very rel ev a n t a n d a t th e s a me time th ere a re a n umber of fun ds th a t h a ve c ome up, depl oyin g h un dreds of mil l ion s of dol l a rs , a l beit a t a h igh c os t th a t is n ot j us tified, c ompa red with h is toric a l

23


DANAOS SHIPPING CO. LTD

Prok opa k is , wh o s ta ted th a t a l th ough th e tra de wa r is h a v in g a s en timen ta l impa c t a c ros s th e in dus try’s pl a yers , es pec ia l l y rega rdin g th e c on ta in eriz ed tra de deriv in g from C h in a , th e devel opmen t of n ew l in es in S outh Ea s t A s ia to th e US in 2019 h a s ba l a n c ed it out.

ret u r n o n ca p ital in s h ip p ing . He co nclu d ed b y s a y i n g th a t o nce th e ne x t g row th cy cle c o m es u p, p e o p le w ill b e ch alle ng e d to s o u rc e t he a mo u nts o f ca p ital re qu ire d a nd t h ey n eed to be p ro active and re a d y to re a dj u s t t o th e ne w f inancing tre nd s . 15th Annual Forum by The Institute of Ch ar t ered S hi p b ro k ers G re e k B ra nc h

Capital Link Operational Excellence in Shippin g Foru m in A then s

Th e I n st i tu te o f C h ar tere d S h ip bro k ers G reek B ra nch o rg aniz e d its 1 5 th A nnu a l Fo ru m , i n co o p eratio n w ith th e B ritish E m b a ss y A th e ns , o n th e o ccas io n o f th e C en t en a r y C e le b ra tio ns o f th e I ns titu te

M r. D imitrios V a s ta rouc h a s , D eputy C h ief Opera tin g Offic er a n d T ec h n ic a l D irec tor of D a n a os S h ippin g pa rtic ipa ded in th e Wa ter Ba l l a s t T rea tmen t S ys tem (WBT S ) pa n el . With a 9- yea r tra c k rec ord, th e F orum prov ides a n in tera c tive pl a tform on th e topic of Opera tion a l Ex c el l en c e, Bes t I n dus try Pra c tic es a n d S us ta in a bil ity l in k in g s h ippin g c ompa n ies , c h a rterers , govern men t a n d n on - govern men t in dus try a s s oc ia tion s , c l a s s ific a tion s oc ieties , P& I C l ubs , R egis tries , tec h n ol ogy & s erv ic e prov iders a n d th e fin a n c ia l a n d in ves tmen t c ommun ity.

rec ei vi n g its R o y al C h ar ter . S p e cia l s pea k ers , e mine nt p ers o nalitie s an d di st i n gu i sh e d p ra ctitio ners f ro m th e i n t er n a t i o n a l s h ip p ing ind u s tr y re v ie w e d a n d di sc us s e d th e e f f e cts o f th e trade w a r o n t h e s h ip p ing era, e x p re s s ing th e ir o pi n i o n s a nd ma k ing p re d ictio ns f o r the fu t u re. Dana o s S h ip p ing w as re p re s e nted b y o u r C ommercia l M anag er , M r F ilip p os

Watson Farley & Williams Shipping Semin ar M r. I ra k l is Prok opa k is , our S en ior V ic e Pres iden t a n d C h ief Opera tin g Offic er, wa s a mon g th e s pea k ers in th e c l os in g pa n el dis c us s ion titl ed “ Greek S h ippin g - l ook in g to th e future” a t th e S h ippin g s emin a r. M ore th a n 300 s h ippin g ex ec utives a tten ded th e s emin a r.

24


SUSTAINABILITY REPORT 2019

s h a rin g k n owl edge a n d in n ov a tion emerge. F in a l l y, on th e en v iron men t th e impa c ts rel a te to th e fa c t th a t everyth in g th a t is produc ed (ma teria l or s erv ic e) h a s a n effec t on th e en v iron men t. We bel ieve, it is everyon e’s duty to bec ome c on s c ious of th e importa n c e of our a c tion s towa rds Ea rth . D a n a os S h ippin g, a s a res pon s ibl e c orpora te c itiz en of th e worl d, s upports a n d promotes every effort th a t improves th e a bove pa ra meters in th e bes t pos s ibl e wa y. We c on s ta n tl y s eek wa ys to improve proc uremen t pol ic ies a n d proc edures , es pec ia l l y th os e rel a tin g to k ey el emen ts wh ic h c on tribute to res pon s ibl e pra c tic es . We pa y s pec ia l a tten tion to th e ex ten s ive us e of en v iron men ta l l y res pon s ibl e ven dors . Our ven dors a re a l rea dy ful fil l in g our ma j or c riteria , a n d n ew c o- opera tion s a re tes ted a n d c on s idered in order to a c h ieve our ta rgets fa s ter.

S up p l y C h ain We a re active ly w o rk ing I n t h i s Ch a pter w i t h o u r s u p p liers f o r th e G R I 1 0 2- 9 i m provem e nt of s o cia l c o n di t i o n s a nd th e minimiz atio n o f o ur en vi ro n m e nta l f o o tp rint. W e re co g niz e t h a t ever y th ing is interco nne cte d a n d t h a t w e s h a re a co mmo n fu t u re. Thro u g h th e co lla b o ra tio n w i t h o u r s u p p liers w e a im to a c hi eve mu tu a lly s h a re d ta rg e ts a n d ea se s o cial co ns id era tio ns . Th e C o m p any ’ s P ro cu re me nt Depa r t m en t is re s p o ns ible f o r s o u rc i n g, a na ly z ing , ne g o tiating a n d su pp ly ing materia ls a nd s ervi c es to me e t th e ne e d s o f t h e ves s e ls a nd th e ir p ers o nne l o n b o a rd. It intera cts w ith h u nd re d s o f ven do rs a nd s erv ice p rov id ers a c ro ss th e g lo b e p ro d u cing t en s o f t h o u s and s o f o rd ers a nd s erv ice a greem en t s .

T h e a bil ity to c on duc t bus in es s in a ma n n er a ppropria te towa rds promotin g eth ic a l , s oc ia l a n d en v iron men ta l s ta n da rds pl a ys a ma j or rol e in th e s el ec tion of our s uppl iers . T h ey a re ex pec ted to ta k e s teps for c on tin uous improvemen t in th e aforementioned fields and adhere to our c ode of eth ic s a n d our c ommitmen t for en v iron men t protec tion , s a fety a n d proper work in g c on dition s in a res pon s ibl e a n d s us ta in a bl e wa y. M a j or a rea s of foc us a re eq ua l opportun ities , c ompl ia n c e with in tern a tion a l l a bor s ta n da rds (n o c h il d l a bor, dec en t work in g c on dition s ), h ea l th a n d s a fety awa ren es s , z ero c orruption tol era n c e, tra n s pa ren c y a n d fa ir bus in es s pol ic y. A l th ough h un dreds of s uppl iers c oopera te with D a n a os S h ippin g, th e C ompa n y promotes ‘green ’ a n d q ua l ity s uppl iers (h ol ders of rel ev a n t c ertific a tion i. e. I S O 1 4 0 0 1 or I S O 9 0 0 1 ) a n d ta rgets th e in c rea s e of th eir in c l us ion in proc uremen t s erv ic es .

A significant employment volume is therefore c rea t ed, a t a lo ca l a nd inter natio nal le vel , fo r t h o u s and s o f p e o p le a nd in th e p ro ce s s ha s a c o n sid erable imp a ct o n th e e co no my, i n t er m s of jo b cre atio n, p ro d u ctio n of reven u e, e mp ow er me nt o f co mp a nie s an d i m provem e nt o f th e e co no my ’ s ind ice s . In s o c i et y t h e imp a ct re la te s to th e incre as ed pro speri t y o f p e o p le , s h a ring co mmon i n t erest s and e njo y ing a ch ance f o r a b e tter l i fe. At t h e s a me time , a n inter na tio na l c u l t u re i s cre ate d a nd o p p o r tu nitie s f or

25


DANAOS SHIPPING CO. LTD

ENGAGING W IT H EMP LOYEES , S OCIET Y AND ACADEMIC COMMUNIT Y

I n th is Ch a pter GR I 102- 12 GR I 403- 6 I t is our ma in goa l a n d a s tra tegic priority to c rea te v a l ue for th e s oc iety a n d th e c ommun ity, in wh ic h we opera te, a n d to k eep our empl oyees en ga ged a n d in v ol ved th rough v a rious v ol un ta ry in itia tives . We bel ieve in th e v a l ue a n d power of s ol ida rity. We try to h el p th os e in n eed a n d sensitize our employees on the significance of a v ol un teer’s s oc ia l c on tribution . We a re th erefore in v ol ved in a s eries of v a l ua bl e in itia tives a n d a c tion s . We s trive to prov ide a h ea l th y work in g en v iron men t for our empl oyees , ta k in g s pec ia l c a re of th eir wel l bein g. T h rough out th e yea r we offer opportun ities for en terta in men t a n d tea mbuil din g.

Mo re t ha n 7 0 % o f o u r ma jo r s u p p liers a n d m o re th a n 5 0 % o f o u r me d iu m an d s m a l l su pp liers h a ve b e e n ch ara cteriz ed a s “green s u p p liers ” th ro u g h o u r rig o ro us a ss ess m ent o f re le v a nt cer tif ica tio ns t h ey ho l d . W e aim a t incre a s ing th e se percentages to 85% and 70% respectively. Du ri n g 2 01 9 th ere w ere no incid e nt s i den t i fi ed d u ring th e lif e cy cle o f th e o rga n i z a t i o ns s erv ice s w h ich re s u lte d in fi n es , pen altie s and / o r w ar ning s .

26


SUSTAINABILITY REPORT 2019

E m p lo yees ’ F u n c tio n s

C h ri stmas C e l ebratio n s fo r C h i l dren O u r employ ees w ith th eir fa milies a n d ch il dren from Elepa p ( R eh a bilita tion for T h e Dis a bled) got to g eth er to c elebra te th e Ch ris tma s s pirit and ba k e c ook ies in o u r offic es in Pira eus .

A nnu a l B ea ch C l e a n u p i n V o u li a gme n i Th e vo l u n t eer bea ch cl ea nu p s ha ve b e e n es tabl is h ed as a k ey i n fo r m a t i on and aw arenes s to o l fo r t h e preventio n o f ma rine l itter po l l u t i o n . U nd er th e mo tto “ W e c l e a n w hat w e l ef t beh ind u s d u ring t h e s u m m er ” , D anao s S h ip p ing c o n t ri b u t ed to th is initia tive b y de vo t i n g a f ew h o u rs to cl ea n u p t h e b e a c h o f M eg al o Kav o u ri in V o u l i a gm eni. HE L M E P A, th e natio nal co ordin a tor of th es e a c tiv ities in Greec e, prov ided us w ith s u ppo r t i n g material ( cl ea nu p o rg aniz ation in s truc tion s , pos ters ) a n d th e s pec ia l T ra s h D a ta F orm w h i c h show ed th at th e cig arette f il ters w ere on c e a ga in a t th e top of th e lis t.

27


DANAOS SHIPPING CO. LTD

R un n i ng an d S p o r t i ng E ven ts

Ath en s M arath o n T h e Ath en s M a ra th on c elebra ted its 37th y ea r a n d th ous a n ds of run n ers from a ll over th e w orld flooded th e s treets of Attic a s ettin g a n ew rec ord of 6 0 , 0 0 0 pa rtic ipa n ts in a ll ra c es a n d turn in g th e en tire w eek en d in to a fes tiv a l of run n in g. Our T ea m w a s th ere both da y s run n in g for ELEPAP. Ath in a H a lf M arath o n We w ere a mon g th e 20000 run n ers a t th is exc eption a l s prin g experien c e in th e h ea rt of th e c ity , brin gin g togeth er s ports , c ulture a n d en terta in men t. S petsa th lo n T h e S pets a th lon is a ma s s s portin g even t bein g h eld on S pets es ; a n is la n d boa s tin g a lon g n a v a l tra dition a n d ric h h is tory , offerin g a v a riety of a c tiv ities , s h ort exc urs ion s a n d trips a roun d th e is la n d in h ors e- draw n c a rria ges . Our T ea m pa rtic ipa ted in th e S pets es T ria th lon S prin t R ela y .

I R ON M A N 7 0. 3 T h e event to o k p l ace in th e area a ro u nd C o s ta N av arin o in P el o p o nnes e. T h e ch al l en ge incl u d ed a 1 . 9 k m s w im, a bik e co u rs e a nd a h a l f ma rath on .

28


SUSTAINABILITY REPORT 2019

We pa r t i c i p a ted in th e S p rint T ria th l o n Rela y R a c e i n E pi da vro s .

En erg y D u a t h l on K a rp e n issi T h e ra ce co ns is ted o f a 6 k m run , a 2 2 k m cycl e a nd a 2 . 8 k m run n in g leg.

R a ce f or t h e Cure We jo ined th o u s and s o f Ath enia ns in t he 1 1 th annu a l “ G reece R a ce f o r th e C u re ,” o ne o f th e mo s t p o p u l a r ra ces for b re a s t cancer aw a renes s w o r l d w id e. T h e e ve n t w a s o rg a niz ed b y th e P anh el len ic A ss o c i a tio n o f W o men w ith B rea s t C a nc er, c a l l e d “A l ma Z o is ” , and th e ra ce’ s p ro ceeds w i l l b e u s ed to rais e p u b l ic aw a renes s , pro m o te p reventio n and ea r l y d ia g n os is a n d su pp o r t th o s e w h o a re cu r rentl y l iv in g w ith b rea s t can c er.

29


DANAOS SHIPPING CO. LTD

I n 2 0 1 9 th e D a na o s S h ip p ing B a sk etba ll T eam w a s c rea ted, un der th e n a me ‘Blue’, w h ic h took pa rt in th e 1 st S h ippin g Ba s k etba ll Lea gue.

Ou r Sa i li ng Tea m t raveled t o o n e o f t h e m o st pict ure sque islan ds o f Greec e, Hy dra

R a f ti n g i n E v i no s R i ver w a s s u c h a n a m a z i ng e x p eri e nc e

Even in gs a t th e th ea tre

30


SUSTAINABILITY REPORT 2019

Act of Joy

S up p o r tin g th e C o mmu n ity C hri s tm a s a n d Ea st er H o l i d a y s C h ri st m a s h o l id ays a l w a ys g ive u s ex tra rea s on s of j oy bec a us e w e get to s pen d time w ith our l ove d o n e s in a f es tive s p irit, o p ening u p pres en ts a n d s ittin g a roun d th e ta ble en j oy in g th e de l i c a c i e s o f th e d a ys . B u t , w h i l e th es e d a ys are aro u nd g iv ing a n d s h a rin g w ith y our fa mily a n d frien ds , it c a n a ls o be u s e d a s a n o p p o r tu nity to g ive to p eo p l e th a t a re les s fortun a te. I n th e en d it’s th e j oy a n d love t h a t w e e x tend to o th ers th a t bring s th e true h a ppin es s in our life.

“We make a living by what we get. We make a life by what we give” Winston S. Churchill (1874 -1965)

31


DANAOS SHIPPING CO. LTD

U n i versity an d Stu d en t V i s i ts • 30 s tu d e n t s f ro m t h e A n n u a l Ma r i ti m e P rog ra mme , th e o f f icial edu c a t i onal p rov id er o f th e I ns titu te o f C h a r t ere d S h ip b ro k ers in G re e ce , vi si t ed o u r p re mis e s . C ap ta in I lia s L a da s i ntro d u ce d th e s t u den t s to th e cu ltu re a n d t he d y namic w o rki n g e nv iro nme nt o f Da n a os S h ip p ing a nd he a n a l y z e d th e cu r re nt t ren ds of th e s h ip p ing i n du s t r y w h ile s h a ring rea l l i fe e x p erie nce s . • Da n a o s S h ip p ing a nd Da n a o s M a na g e me nt C o n s u l t ants o rg a niz e d a n edu c a tio nal v is it f o r 80 s tu d e n t s f ro m t h e Me tro po li t a n C o lle g e o f A the n s . C a p tain I lias L a da s w e lco me d th e s t u den t s a nd intro d u ce d th e m to th e fu n c t i o n s o f D a na o s S h ip p ing w h ile M r N o m i ko s p re s e nte d th e s o f tw a re and o pera t i ons o f D anao s M a na g e me nt C o n s u l t ants a nd th e ir imp a ct o n t o da y ’ s m a rk e t. A t th e e nd , D r . V a rel a s a na ly z e d th e re s e arch and th e devel o pm e nt th e co mp any is w o rk ing o n a n d h ow innov atio n a ris e s .

• A gro up o f Ch in ese studen ts wh o a tten d th e S ummer S c h ool of th e Europea n I n s titute of Nic e, in c oopera tion with th e Yun n a n Un ivers ity of C h in a , v is ited our premis es in Jul y. T h e purpos e of th e v is it wa s to c on tribute to th e “ Peopl e- to- Peopl e” ex c h a n ge between C h in a a n d th e Wes t, wh il e th e ma in rea s on for th e s tuden ts wh o v is ited Greec e wa s to l ea rn a bout Greek C ul ture, c urren t Europea n pol itic s a n d Greec e’s s uc c es s s tories ! D a n a os S h ippin g’s C ommerc ia l M a n a ger, M r. F il ippos Prok opa k is , in troduc ed th e s tuden ts to th e ba s ic prin c ipl es of our c ompa n y, th e ma ritime s ec tor in Greec e a n d th e c ommerc ia l rel a tion s between C h in a a n d Greec e. A mon g oth ers , h e el a bora ted on our c ompa n y’s fl eet ev ol ution , th e fl eet util iz a tion , th e I n tern a l Q ua l ity C on trol R ec ords a n d topic s on our S us ta in a bil ity a pproa c h .

• I t w a s a p le a s u re to w e lco me 3 5 G re e k a n d f ore i g n s t u d e n t s f rom I C MA C e n t re & A L B A G ra d u a t e B u s i ne ss S ch o o l. C a p tain I lias L ad a s a n d Mr . P ro k o p ak is w ere b o th p re s e nt t o el a b o ra te o n th e cu r re nt s h ip p ing s i t u a t i o n a nd o n h ow D anao s S h ip p ing c o ped with th e s h ip p ing cris is . T h e vi si t en d e d w ith lo ts o f qu e s tio ns and a n s w ers and th e s tu d e nts le f t w ith u s efu l t i p s f o r th e ir f u tu re care ers .

32


SUSTAINABILITY REPORT 2019

• V i s i t fro m s t u d e n t s f ro m th e M S c in I n t er n a t i o nal S h ip p ing , F inance a nd Ma n a gem e nt f ro m A th e ns U nivers ity o f E c o n o m i cs a nd B u s ine s s . A mo ng th e m , t h ere w ere 1 4 s tu d e nts f ro m Ko re a Ma ri t i m e and O ce a n U nivers ity in th e c o n t ext o f co o p eratio n be tw e e n th e two u n i vers i t ie s . • Fo r a 5 t h co ns e cu tive y ea r , P ro f e s s o r O re s tis Sc hi n a s f ro m H a mb u rg Sc ho o l o f B u s i n e s s A d m i ni s t ra t i on ( HS B A ) a nd hi s po st g rad u a te s tu d e nts a t t en ded o u r p re mis e s . Th e s t u d e nts h a d th e o ppo r t u n ity to e x p lo re o u r c o m pa n y a nd g a in v a lu a b le i n s i ght s into th e cu r re nt t ren ds of th e s e cto r .

33


OUR A P P R OA SUSTAIN & CORPO RESPON


CH TO ABILITY RATE SIBILITY


DANAOS SHIPPING CO. LTD

O U R A PPRO ACH T O S US T AINABILIT Y A N D C O RPORAT E RES P ONS IBILIT Y S t akeh o ld er E nga ge m e nt I n thi s C h a p t er D anao s S h ip p ing re co g n iz es th e importa n c e of a l l s ta k eh ol der groups wh eth er th es e a re inter na l s tak e h o ld ers s uc h a s s h a reh ol ders a n d empl oyees (c rew members G R I 102- 4 0 a nd o f f ice e mp lo y e e s ) or ex tern a l s ta k eh ol ders s uc h a s s uppl iers a n d c us tomers . G R I 102- 4 2 S ta k e h o ld ers are ind iv idua l s or groups th a t ma y or ma y n ot en ga ge in fin a n c ia l G R I 102- 4 3 tra ns a ctio ns w ith th e compa n y, but a re a ffec ted by or c a n a ffec t its a c tion s . G R I 102- 4 4 I t is o f h ig h e s t imp o r tan c e for us to ful fil th e n eeds a n d c on c ern s of a l l th es e differen t gro u ps , w h ich w ill h e lp u s s e t th e ap p ro pria te s tra tegy, in itia tives a n d goa l s . We h a ve i d e ntif ie d s e ve n g ro u p s as o u r k ey s ta k eh ol ders , with wh ic h we c ommun ic a te a t a da il y ba s is , o r w hen n e e d , th ro u g h a v arie ty o f co mmun ic a tion c h a n n el s in order to un ders ta n d th eir c on c ern s a n d respo n d i n th e mo s t a p p ro p ria te manner :

O ur S t ake ho l d ers

E M P L OYE E S

SOCIETY

C US T OM E R S

FI NA NC E RELATED

SUPPLIES

IN TERN ATIONA L & IN D UST R Y ORGAN IZ ATI ONS & REGULAT OR S

GOV E R NM E NT

36


SUSTAINABILITY REPORT 2019

The following table presents the company’s main stakeholder groups, their expectations and how the company interacts and engages with them: Our Stakeholders

What they expect from us

Communication Channels and Frequency of Engagement

Our Response

Who we are Engaging with Employees, Society and Academic Community

Employees (Office staff & Seafarers)

Our employees expect from Danaos Shipping to be a fair employer, to provide safe working conditions and to care for the work-life balance of the employees, to provide opportunities for training and professional development, and to provide a discriminationfree working environment.

We support an ongoing open communication between management and employees. Engagement also through monthly internal meetings as well as an annual management review report. We host regular team building activities and employee welfare initiatives, and we hold regular employee satisfaction surveys.

Material Issue: Occupational Health and Safety Material Issue: Training and Education Material Issue: Emergency Preparedness Material Issue: Risk Management Material Issue: Audits, Inspections and Surveys Environmental Report

Customers (Charterers)

Finance Related (Banks)

Our customers expect high quality and flexible services, to provide ongoing and accurate support, to be flexible to their requirements, to be transparent, and to conduct our business in a sustainable manner (ethical, safe, environmentally-friendly, respecting of human rights).

Our finance related stakeholders are interested in our company’s creditworthiness and financial performance, to receive accurate information, in our risk control and assessment, and to the company’s robust management processes and long-term growth.

We engage with our customers through our cargo booking process and our dedicated customer service coordinators. We also hold review meetings, every 6 months (or when needed), in order to share information on action plans and long-term strategy. We work closely with our customers to develop services that promote sustainability, and we participate to our customers’ benchmarking systems and sustainability assessments.

Who we are Material Issue: Emergency Preparedness Material Issue: Risk Management Material Issue: Audits, Inspections and Surveys Environmental Report

Message from the Company’s Management We are in daily communication with our finance related stakeholders through our contracts, our financial reports, progress meetings, and our corporate presentation and in general our day-to-day transaction.

Who we are Material Issue: Emergency Preparedness Material Issue: Risk Management Material Issue: Audits, Inspections and Surveys Environmental Report

37


DANAOS SHIPPING CO. LTD

Our Stakeholders

What they expect from us

Communication Channels and Frequency of Engagement

Our Response

Message from the Company’s Management Who we are Material Issue: Occupational Health and Safety

Government Officials and Authorities (Port State Control)

Government officials and agencies expect from us to be compliant and consistent, to conduct safe and environmentally-friendly operation, to implement quality standards, to do our due diligence, and to generate economic growth.

We engage with government officials and authorities through notices/instructions about latest rules and requirements, through the results of our inspections and auditing programs, and through formal dialogue and communication channels.

Material Issue: Energy Consumption Material Issue: Waste and Spill Management Material Issue: Emissions Material Issue: Environmental Compliance Material Issue: Emergency Preparedness Material Issue: Risk Management Material Issue: Audits, Inspections and Surveys Environmental Report

Who we are International and Industry Organizations and Regulators (e.g. IMO, HELMEPA)

These stakeholders expect our active participation, collaboration and support, to be up-to-date and compliant with new requirements, to operate in an ethical manner, and to promote the internal sustainability culture.

We engage though annual and ad-hoc meetings, through memberships, audits, through participation in high-kevel meetings, steering groups, committee, councils, forums and projects, as well as in the formation of joint action plans.

Material Issue: Occupational Health and Safety Material Issue: Energy Consumption Material Issue: Waste and Spill Management Material Issue: Emissions Environmental Report

Suppliers (port agents, manufacturers, shipyards)

Society (NGOs, Local Communities)

Our suppliers expect a fair and long-term cooperation, the timely execution of our financial responsibilities, to inform them in time of any significant changes, and to exchange knowledge and business opportunities.

We communicate with our suppliers through our supplier performance evaluation, through service review meetings (with major suppliers), through our participation in supplier organized workshops and onsite visits.

Our social stakeholders expect from us to support social and economic development, to conduct our business in an ethical manner and protect human rights, to provide employment opportunities, and to participate in initiatives in order to support social and environmental causes.

We communicate through news published on our corporate web-site and social media accounts, through our donations and charities, and through our participation in discussions/ dialogue in sustainability forums organized by NGOs

38

Who we are Material Issue: Emergency Preparedness Material Issue: Risk Management Environmental Report

Who we are Engaging with Employees, Society and Academic Community Our Approach to Sustainability and Corporate Responsibility Environmental Report


SUSTAINABILITY REPORT 2019

39


DANAOS SHIPPING CO. LTD

O u r Material Issues I n thi s C h a p t er O ne o f th e k e y p rincip le s of th e Gl oba l R eportin g I n itia tive is th e M a teria l ity Prin c ipl e. A n o rg a niz a tio n s h o u ld report on topic s wh ic h c a us e th e mos t importa n t ec on omic , G R I 1 02- 4 6 e nv iro nme nta l a nd s o c ia l impa c ts , a n d/ or on topic s th a t a re c on s idered a s th e G R I 1 02- 4 7 mo s t imp o r tant by th e orga n iz a tion ’s in tern a l a n d ex tern a l s ta k eh ol ders . D urin g t h e pro c es s o f d e ter mining th o s e is s u e s, a n orga n iz a tion mus t a c tivel y in v ol ve its s ta k eh ol ders a n d exa m i n e a l l th e to p ics f o r th e time p erio d th a t th e s us ta in a bil ity report wil l refer to.

M et h o d o lo gy Ste p 1 C h o o s ing th e s tak e h o ld ers to be in v ol ved in th e p ro ce s s . Ste p 2 I d e ntif y ing and p rio ritiz ing th e s us ta in a bil ity t op ics ( e co no mic, e nv iro nme nta l , work pl a c e re la te d , h u man rig h ts , s o cia l , res pon s ibl e p ro d u cts , e tc. ) u s ing th e G R I S t a n da rds . D urin g t h is s te p , th e materia l to p ics id e n tified by oth er o rg a niz a tio ns in th e S h ip p ing s ec tor were ta k en i n to acco u nt ( s e cto r b e nch ma rk in g). Ste p 3 C o nd u cting a materia lity s u rvey, th rough a qu alitative qu e s tio nnaire , in o rd er to iden tify th e ma terial to p ics . F o r e ver y qu e s t ion a q ua l ita tive s cale ( ver y h ig h , h ig h , me d iu m , a n d l ow) wa s u s e d in o rd er to e v a lu a te th e importa n c e of e ach to p ic. T h e s u rve y w a s a d dres s ed to our e mp lo y e e s ( o f f ice a nd cre w me mbers ), to our ch a r terers a nd to o u r s u p p liers . Ste p 4 A naly z ing th e o u tco me s an d res ul ts a n d p re s e nting th e to p ics in a materia l ity ma trix . U p o n co mp le tio n o f th e ma terial ity a s s es s men t p ro ce s s , th e f o llow ing to p ics were c on s idered t o b e o f ver y h ig h imp o r tance , thus a re in c l uded i n th e D anao s S h ip p ing S u s tainabil ity R eport.

40

• Oc c upa tion a l Hea l th a n d S a fety • T ra in in g a n d Educ a tion • En ergy C on s umption • Wa s te a n d S pil l M a n a gemen t • Emis s ion s • En v iron men ta l C ompl ia n c e • Emergen c y Prepa redn es s • R is k A s s es s men t • A udit, I n s pec tion s a n d S urveys


VERY HIGH IMPORTANCE

SUSTAINABILITY REPORT 2019

23 5

11

HIGH IMPORTANCE MEDIUM IMPORTANCE

22 1

12 17

20

13 21 8

2

18 10

24 15

16

6 14

9

7 12

LOW IMPORTANCE

Stakeholder Priorities

4

3

LOW IMPORTANCE

MEDIUM IMPORTANCE

HIGH IMPORTANCE

VERY HIGH IMPORTANCE

C orp ora te P ri ori ti e s

MATE R IA L IT Y MA T RIX L E GE ND

ECONOMIC

ENVIRONMENTAL

S OC I A L- EM PLOYEES - S ER V I C ES - C LI ENT S

1 . E co no mic P erf o r mance 2 . I nd ire ct E co no mic I mp a ct 3 . P ro cu re me nt P ractice s 4 . A nti- co r ru p tio n 5 . R is k A s s e s s me nt 6 . E nerg y C o ns u mp tio n 7 . B io d ivers ity 8 . W a ter ( inc. B a llas t W ater ) 9 . E mis s io ns ( o r A ir P o llu tio n) 1 0 . W a s te and S p ill M a na g e me nt 1 1 . E nv iro nme ntal C o mp liance 1 2 . S e le ctive and E v alu ating S u p pl ier u s ing E nv iro nme nta l C riteria

13. Empl oymen t 14. La bor/ M a n a gemen t R el a tion s 15. Oc c upa tion a l Hea l th a n d S a fety 16. T ra in in g a n d Educ a tion 17. D ivers ity, Eq ua l Opportun ity a n d Non - dis c rimin a tion 18. Emergen c y Prepa redn es s 19. S uppl ier S oc ia l A s s es s men t 20. S ec urity Pra c tic es 21. C orpora te R es pon s ibil ity A c tiv ities 22. Huma n R igh ts A s s es s men t 23. A udits , I n s pec tion s a n d S urveys 24. I n n ov a tion a n d D igita l iz a tion

41


DANAOS SHIPPING CO. LTD

Material Issues Occupational Health and Safety Training and Education

Internal and External Boundaries (where the impacts occur)

Danaos Shipping, Employees, Crew Government Officials and Authorities

Danaos Shipping, Employees, Crew

Energy Consumption

Danaos Shipping, Employees, Crew, Customers

Waste and Spill Management

Danaos Shipping, Employees, Crew, Society (NGOs, Local Communities), Government Officials and Authorities

Emissions

Environmental Compliance

Emergency Preparedness

Danaos Shipping, Employees, Crew, Government Officials and Authorities Danaos Shipping, Employees, Crew, Customers, International and Industry Organizations and Regulators, Society (NGOs, Local Communities), Government Officials and Authorities, Finance Related Stakeholders

Finance Related Stakeholders

Risk Assessment

Danaos Shipping, Employees, Crew, Suppliers, Customers, Government Officials and Authorities, Finance Related Stakeholders

Audit, Inspections and Surveys

Danaos Shipping, Employees, Crew, Suppliers, Customers, Government Officials and Authorities

42


SUSTAINABILITY REPORT 2019

M AT E R IA L ISSU E : O c c up a tio n al Health A n d Sa fety

en c oura ge reportin g of in c iden ts wh ic h do n ot res ul t in in j uries a n d n ea r mis s es . T h es e min or in c iden ts a re rega rded a s wa rn in gs s ign a l s for proc edures a n d pra c tic es th a t merit rev is ion a n d remedia tion . A l l in c iden ts a re in ves tiga ted by th e s h ip’s M a s ter, with th e s upport of th e s a fety Offic er, s ea fa rers ’ s a fety repres en ta tive or a n y oth er member of th e S a fety, En v iron men ta l & M LC I n th is Ch a pter C ommittee. D a n a os GR I 403- 1 S h ippin g us es th e mos t GR I 403- 2 obj ec tive mea s urin g GR I 403- 3 tool , th e Los s T ime GR I 403- 4 I n j ury F req uen c y (LT I F ) GR I 403- 5 wh ic h mea s ures th e GR I 403- 9 n umber of h ours a s ea fa rer is un a bl e to work due to in j uries (th e n umber of l os t time in j uries (fa ta l ities + l os t work da y c a s es ) per 1 , 0 0 0 , 0 0 0 work h ours ). D u ri n g 2 0 1 9 w e h a d o n re c o rd 1 3 L T I s w h i c h e q u a l t o a L T I F ra t e o f 1 . 1 2 . W e a re e n c o u ra g e d t o h a ve s e e n a f u r t h er i n c re a s e i n re p o r t i n g o f n e a r m i s s e s , c o u n t i n g 2 1 3 re p o r t s f o r t h i s y e a r . T h i s i s a t t ri b u t e d t o a l l t h e e f f o r t s m a d e t o t ra i n o u r p e o p l e o n b o a rd a n d a c t i ve l y e n g a g e t h e m i n re c o g n i z i n g a n d re p o r t i n g a n e a r miss. T o f u r t h er d e c re a s e t h e L T I F ra t e w e h a ve i n c o rp o ra t e d t h e L o c k o u t / T a g o u t s y s t e m w h i c h i s u s e d t o s e c u re e n erg y s t o re d e q u i p m e n t i n a m a n n er t h a t w i l l re n d er t h e m s a f e t o w o rk o n a n d p re ve n t t h e i n a d ver t e n t s t a r t u p o f s u c h e q u i p m e n t w h i l e b e i n g w o rk e d o n . A d d i t i o n a l l y , f ro m 2 0 1 8 o n w a rd s w e

We h o l d t h e h e a lth , s a f e ty and w e llb e ing o f o u r em p lo y e e s a nd cre w at th e h ig h e s t l evel , a n d w e co ns ta ntly s trive to p rov ide t h e s a fest p o s s ib le co nd itio ns . W e h ave i m pl em en t e d an O ccu p atio nal H e alth a nd Sa fet y reg ime w h ich is ba s e d o n p o licie s a n d pro c ed u re s d e s ig ne d in a ma nner th a t en s u res t h e h e a lth a nd s af e ty o f e ver y o n e i n vo l ved i n o u r o p era tio ns . T h is re g ime i n c l u des t h e a p p licatio n o f be s t p ractices i n s hi p o p era tio n, w o rk ing e nv iro nme nt , preven t i o n o f inju r y ( o r lo s s o f lif e ), m ea su res to re s p o nd to a ll id e ntif ie d ris k s t o s hi p/ carg o / e nv iro nme nt, e merg e ncy prepa redne s s , a nd th e d e ve lo p me nt o f th e hea l t h a n d s af e ty s k ills o f o u r e mp lo y e es a n d c rew . D anao s S h ip p ing w a s th e f irs t G reek c o m p any to b e cer tif ie d b y D e t N o rsk e V eritas ( “ D N V ” ) and o u r g lo b a l o pera t i o n s are a u d ite d b y D N V and a re s u c c ess fu l ly as s e s s e d as co mp liant w it h t h e IMO C od e f o r S O P S . Tow a rds t h e s u cce s s o f o u r h e a lth an d s a fet y reg ime w e h a ve e s ta b lis h e d an d c o m m u n i c a te d p o licie s in o rd er to re p o r t, preven t a n d e limina te a ccid e nts and ne ar m i s s es. Th e ma in o bje ctive o f th e p o licy i s fo r ea c h e mp lo y e e a nd cre w me mber t o s t a r t a n d f inis h th e d ay s a f e and h e alth y. Year

2017

2018

2019

Near Misses

166

203

213 started implementing a Behavior Based S y s t e m a p p ro a c h i n o rd er t o a d d re s s t h e factors that influence and reinforce learning and behavior. Successful implementation l e a d s t o s i g n i f i c a n t i m p rove m e n t s t o t h e s a f e t y p erf o r m a n c e , a n d t h ro u g h t h e B B S a p p ro a c h w e a i m t o c re a t e a “ t o t a l s a f e t y c u l t u re ” t h ro u g h o u t t h e c o m p a n y .

Th e po l i c y als o e x te nd s b e y o nd e mp lo y e e s a n d c rew me mb ers to s te ve d o re s ’ a nd vi si t o rs ’ a s w e ll. T h e p o licy cle a r ly s tates t h a t a l l i n c id e nts ( a ccid e nts and h a z ard o us o c c u r ren c e s ) a re re p o r te d , inve s tig ated a n d a n a l y s e d ( w ith o u t th e f e a r o f re p ris a l) i n o rder t o a na ly s e th e ca u s e s a nd p re ve nt s i m i l a r i n cid e nts in th e f u tu re . W e also

43


DANAOS SHIPPING CO. LTD

M AT E R IA L ISSU E : T ra i n i n g an d ed u c atio n

participants exchange views, ideas, and e x p eri e n c e s . T h e m a i n c o m p o n e n t o f o u r s u c c e s s i s b a s e d o n t h e p er f o r m a n c e , d e v o t i o n a n d t e c h n i c a l e x p er t i s e o f o u r e m p l o y e e s b o t h o n s h o re a n d o f f s h o re . W e c o n t i n u o u s l y i d e n t i f y t ra i n i n g n e e d s f o r e m p l o y e e s a n d s e a f a rers , a n d w e h a ve d e s i g n e d a c u s t o m i z e d t ra i n i n g p ro g ra m t o e n s u re s a f e t y aw a re n e s s a n d competence.

W e c o n s i d er o u r e m p l o y e e s a n d c re w m e m b ers a s o u r b i g g e s t a s s e t , s o w e I n thi s C h a p t er c o n s t a n t l y i n ve s t i n t h e i r talents and updating G R I 404- 1 a n d u p g ra d i n g t h e i r G R I 404- 2 k n o w l e d g e . W e p ro v i d e G R I 403- 5 opportunities for p ro f e s s i o n a l a n d p ers o n a l d e ve l o p m e n t based on their needs and based on the company’s needs. T h ro u g h o u t o u r t ra i n i n g p ro g ra m s , w e e n c o u ra g e b o n d i n g b e t w e e n p e o p l e a n d p ro m o t e t h e D a n a o s S h i p p i n g c u l t u re a s

2017

2018

2019

Trained Seafarers in Greece

213

148

526

Trained Seafarers in Branches

2251

2335

2074

Training Hours in Greece

431

372

890

Training hours in Branches

604

3063

4979

Seminar hours

520

600

640

Seminar Attendances for Employees

155

158

147

Bridge Simulator Training Hours

272

126

120

T ra i n i n g H ou rs f or e m p l oye e s i n d i f f ere n t c a te gori e s ( 2 0 1 7 - 2 0 1 9 )

44


SUSTAINABILITY REPORT 2019

I t i s i m po rta nt th at e mp lo y e e s a nd s e af arers a re tra in ed on s ubj ec ts s uc h a s en v iron men ta l pol ic y a n d go a l s, rel e v ant e nv iro nme ntal as p e cts , opera tion a l , mon itorin g a n d c on tin gen c y proc edures , upda tes i n l aw s a nd re g u latio ns a f f e cting s h ip opera tion , a n d da y to da y a c tiv ities . T h e D a n a os S h ippin g Ass ess m ent and T raining C e nter ( D A T C ) wa s es ta bl is h ed in 2016 in order to c over th e n ewl y a ris in g t ra i n i n g n e e d s o f th e f le e ts ’ O f f icers , C re w a n d s h ore s ta ff empl oyees . I t a c c ommoda tes a n on - premis e i n s t a l l a t i on, h o u s e d at th e D anao s S h ip pin g Pira eus offic es , c ompris in g of th e DAT C fu l l -m i s s i on B rid g e S imu la to r a nd s tate of th e a rt tra in in g fa c il ities . a cco mmo dates Th e DATC p ers o nne l co ntinu o u s ly s u p p o rts a n d c oopera tes with a l l th e C ompa n y’s an o n - premise departments for the identification of their specific training needs and thus providing in stalla tio n , t ra i n i n g a ctiv itie s a ime d to f u r th er e nh a n c e th e k n owl edge, th e awa ren es s , th e h o used at th e c o m pet en ce and th e p erf o r mance o f th e Compa n y’s pers on n el . Dan ao s S h ippin g An i n t egra l p a r t o f th e cu r ricu lu m is o u r C ompa n y’s S a fety M a n a gemen t S ys tem P ira eus o ffices ( DSMS) , a s w e ll a s th e f e e d ba ck a nd le s s on s l ea rn t from a c tua l fl eet ex perien c e. Th e t ra i n i ng co mbine s th e o re tical k nowl edge a n d pra c tic a l tra in in g, tes ts a n d en ha n c ed co mp e te nce b y u s ing a ctu a l s cen a rios a s s imul a tion ex erc is es . D A T C h a s been c ertified a n d a c c redi t ed by L lo y d ’ s R e g is ter o f s h ip p ing a n d th e D M S (C yprus Govern men t D epa rtmen t of M erc h a n t s hi ppi n g) with th e A p p rove d T ra ining P rov ider C ertific a te a n d th e I S O 9 0 0 1 :2 0 0 8 C ertific a te, pen din g t h e n ew l y lau nch e d I S O 9 0 0 1 : 2 0 1 5 s ta nda rd c ertific a tion . BR ( T ) M : B ri d ge R es o u rc e M a n a gem en t (theo r y a n d s imu l a tio n ) (5 d a ys ) M R M : M a ri t i m e R es o u rc e M a n a gem en t (5 d a ys ) M e g a ca rri es S h i p h a n d l i n g b a s i s D a n a os S hipp in g 1 3 , 1 0 0 / 1 0 , 1 0 0 T E U ves s el s (2 da ys ) I ncid e nt Co m m a n d & R es c u e Si m A F F Mo d u l e (2 da ys )

Th ro u gh t h e D A T C th e f o llow ing S imu lation T ra in in gs a re prov ided: IN - HOUSE SEMINARS Leadership (Russia)

Damage Stability and Control (Russia)

Bridge Resource & Team Management

Leadership (Ukraine)

IMDG Handling (Russia & Ukraine)

Navigation (Russia & Ukraine)

P&I and FD&D Seminar

Marine Meteorology

Maritime Resource Management

Damage Stability and Control

Ballast Water Treatment (Russia)

Scrubber & IMO2020 (Russia)

Multicultural Communication o/b

Ballast Water Treatment & IMO2020 (Ukraine)

Scrubber (Ukraine)

Charter Party (Russia & Ukraine)

Leadership (Russia & Ukraine)

45


DANAOS SHIPPING CO. LTD

OUTSOURCED SEMINARS New Labor law

10th Annual Greek Shipping Forum

5ο Ιnternational Conference (Artificial Intelligence & Legislation)

Training in US Waters workshop (organized by SQE Marine)

Global Sulphur Cap Forum Athens (organized by TOTAL)

Yokogawa Autopilot / Basic Troubleshoot (organized by Spacel)

Sulphur 2020 (organized by LR)

7012 Delta V Operator Interface for Continuous Control (organized by Emerson)

IMO DCS Webinar

Agile Audit by HIIA

3rd Cyber Security Conference

Global Liner Conference 2019

Using Industry Best Practices Effectively

STCW for Crewing Managers

Smart Marine Network

Hellenic American Maritime Forum (by HellenicAmerican Chamber of Commerce)

1st DNV GL Marine Safety & Quality Forum

NI Hellenic “Maritime Day”

Clyde & Co “Annual Greek Shipping Conference”

Alfa Laval Boilers – 2020 Compliant Fuels & Upcoming Challenges for Boilers Perspective

Updated BWM Convention

2019 Incident Management Team Tabletop Exercise Athens (ΙΜΤ ΤΤΧ)

Data Analytics

5th Ship IT Conference

INCE Quarterly Shipping Briefing

Maersk’s Owners Seminar 2019

Expect the Unexpected - Annual HIIA Conference

2019 ACFE Green Annual Conference

Exclusive Cyber Security Shipping Roundtable

Annual Capital Operational Excellence in Shipping Forum

Current Trends in Shipping Seminar & Networking Reception

Hyundai Global Service Day

Shipping Benchmarking Initiative 2019 – Vessel OPEX & Quality Report

Dual Fuel Engines

Marine Insurance

19th Navigator 2019 – The Shipping Decision Makers Forum

2020: Navigating the Known Unknowns

KR Technical Seminar

Stevedore & Personal Injury Claims in the US (The Swedish Club)

Countdown to IMO Sulphur Cap 2020 (March Greece)

Exclusive Cyber Security Shipping Roundtable

46


SUSTAINABILITY REPORT 2019

M AT E R IA L ISSU E : E n erg y C o n s u mp tio n

Our a mbition is to in c orpora te th e en ergy effic ien c y in to our empl oyees ’ c ul ture en a bl in g th em to meet regul a tory a n d ma rk et req uiremen ts wh il e we ma in ta in our c ompetitive edge. We h a ve a dopted S EEM P a n d I S O50001, a n d we h a ve in c orpora ted en ergy ma n a gemen t a l gorith ms in to our WA V ES a n a l ytic s pl a tform to mon itor power effic ien c y a n d improve performa n c e. We a im a t even furth er power effic ien c y improvemen ts a n d furth er impl emen ta tion of I S O5 0 0 0 1 with our fl eet.

I n thi s C h a p t er

Danaos Shipping vessels a re o p era ting on G R I 3 02- 1 p rincip al tra d e ro u te s G R I 3 02- 5 a ll a ro u nd th e w o r ld, i n c l u di n g e mis s io ns co ntro l are as . T h e i m pl em en t atio n p ro ce s s h a s re qu ire d m o di fi c a t i o n to th e ve s s e ls in o rd er t o c o m pl y w ith th e re g u la tio ns and e ns u re

C l ima te c h a n ge is Our go a l is to c on s idered to be th e o ffer o ptimal ma j or gl oba l c h a l l en ge susta in able tran spo r t during the next decades. so lutio n s to T h us , on e of our ma in c on c ern s is to reduc e o ur custo mers, so lutio n s th at en ergy c on s umption are co mplia n t (el ec tric ity a n d n a tura l with a ll th e ga s ), a s wel l a s fuel s glo bal tren ds (ga s a n d petrol eum from th e own ed a n d l ea s ed veh ic l es ), in order to reduc e th e Green h ous e ga s emis s ion s (GHG) a n d c on tribute to th e min imiz a tion of c l ima te c h a n ge a n d its impa c ts . Our en ergy c on s umption is ex pres s ed in terms of fuel we us e a n d is div ided in to th e fol l owin g k ey performa n c e in dic a tors : Hea v y F uel Oil (HF O), Low S ul ph ur F uel Oil (LS F O), M a rin e Ga s oil (M GO), T ota l D ies el Gen era tors (D / G) C on s umption a t S ea . We a l s o mon itor

s a fe t ra de. D anao s S h ip p ing h a s ad ju s te d a l l vess el s a cco rd ing ly , in o rd er to b e abl e t o u s e di ff ere nt f u e l g ra d e s and o p erate s a fet y i n princip le ro u te s all over th e w o r ld . O u r go a l i s to o f f er o p tima l s u s tainabl e t ra n spo r t s o lu tio ns to o u r cu s to mers, s o l u t i o n s th at are co mp lia nt w ith a ll th e gl o b a l t ren d s and me e t p re s e nt a nd f u tu re req u i rem ents ( le g is la tive and o th er w is e ) . To a c h i eve th is , w e s u cce s s f u lly co mp le ted t h e m o di fi ca tio ns o f all o u r ve s s e ls w el l b efo re t h e re qu ire d d e a d line , w h ile at t h e s a m e time w e inve s tig a te f u r th er m o di fi c a t i o ns in o rd er to me e t u p co min g regu l a t i o ns .

th e en ergy c on s umed, in terms of el ec tric power, by our h ea dq ua rters . A l l en ergy performa n c e in dic a tors rel a ted to ves s el s ’ performa n c e a l on g with rel ev a n t gra ph s a re pres en ted in deta il in th e En v iron men ta l report.

47


DANAOS SHIPPING CO. LTD

Energy Consumption - Offices (KWh) 1.303.994 1.320.000 1.300.000 1.280.000 1.260.000 1.240.000 1.220.000 1.200.000 1.180.000

1.234.023

2017

2018

1.250.622

2019

E n ergy C on s u m p ti on – O f f i c e s ( k W h ) 2 0 1 7 - 2 0 1 9

O p t imizat i o ns & E nv i ro nm e nt a l P ro tection As pa r t o f o u r co re p o licy , in o rd er to re ma in s us ta in a bl e a n d a ddres s our c l ien t’s n eeds in th e bes t po s s i b l e w a y , w e h ave s tu d ie d nu mero u s optimiz a tion s for our s h ips ’ des ign , ta rgetin g in c rea s ed fuel effi c i en c y a nd a cle a ner e nv iro nme nt. D an a os S h ippin g h a s ma de ex ten s ive s tudies in th e k ey a rea s b el ow : • Online Data Acquisition & Performance Monitoring • Bulbous Bow Modification & Propeller Retrofits • Cargo Flexibility & Reefer Maximization • Shor tening • EEIMs C argo C arry in g C apacity O ptimization

• Turbocharger Cut-Out (TC c/o) • Trim Optimization

C a rgo C a rryin g C a pa c ity Optimiz a tion D a n a os S h ippin g, a c k n owl edgin g th e diffic ul ties of th e c urren t ma rk et a n d th e res pon s ibil ity of reduc in g th e en v iron men ta l footprin t, h a s ex ten s ivel y in ves tiga ted th e option s in min imiz in g th e tra n s porta tion c os t a n d th e s ubs eq uen t fuel c on s umption req uired per T EU. T h e reduc tion of th e fuel c on s umption per T EU c a n be a c h ieved eith er th rough h ul l , en gin e optimiz a tion s a n d upgra des or th rough th e in c rea s e of th e tra n s ported c on ta in er c a pa c ity. T o th is res pec t, wa n tin g to ta k e a dv a n ta ge of both option s , D a n a os S h ippin g’s T ec h n ic a l depa rtmen t h a s ma teria l iz ed a s eries of modific a tion s s uc h a s bul bous bow ren ewa l s , repl a c emen t of propel l ers with h igh l y effic ien t on es , ma in en gin e

• Draft Increase • Hull Appendages & Rudder Bulb

A l l re t ro fi t s ap p l ied o n D anao s Sh i ppi n g ves s el s a re s u mma riz ed in th e E n vi ro n m e nta l R ep o r t.

48


SUSTAINABILITY REPORT 2019

dera t i n g & T C C u t o u t a nd u ltra - low f riction pa i n t s a m o ng o th ers . T h e la te s t u p g rad e s, i n s t a l l ed o n th e 4 x 6 , 5 0 0 T E U ve s s e ls , ha ve rec en tly co mp le te d th e ir d r y d o ck ing o b l i ga t i o n s , p rov ing th at D anao s S h ip p ing i s i n vest i n g tow ard s th e f u tu re and p rov id e s t h e m a rke t w ith ve s s e ls h av ing th e la te s t o pt i m i z a t i o ns a nd ad h ering to th e h ig h e s t s t a n da rds. N ew l a shing ru le s , u p d a te s o f th e p reexi s t i n g C a rg o S e cu ring M anu als an d L o a di n g s o f tw are are now u tiliz ing h ig h er C a rgo c ap a city o n D a na o s S h ip p ing vess el s , w i th lo ad ing f le x ibility and h e av ier s t a c k. The a d v a nta g e o f h ig h er d raf t to a c c o m m o d a te mo re ca rg o w h ich co u l d b en efi t fro m it, d erive d f ro m th e re s u lt s o f t he fi n ite e le me nt & d ire ct s tre ng t h a n a l y s i s.

We h ave studied n umero us o ptimiz atio n s fo r o ur sh ips’ design , targetin g in crea sed fuel efficien cy a n d a clean er en viro n men t

49


DANAOS SHIPPING CO. LTD

M AT E R IA L ISSU E : Waste and Spill Management

preven t a n y poten tia l th rea ts to th e ma rin e en v iron men t. Our fl eet is bein g ma in ta in ed a t th e h igh es t s ta n da rds of th e ma rk et, prov idin g s a fe boun da ries for th e pol l uta n ts tra n s ported. T h e h uma n fa c tor is bein g c on trol l ed by s el ec ted C rew Pool s from D a n a os S h ippin g own ed M a n n in g offic es , in - h ous e tra in in g to promote T h e S M S sy stem en v iron men ta l s a fety o f Dan ao s c ul ture & awa ren es s , S h ippin g h a s been very frequent visits awarded with an onboard by the I S O 9001 & I S O Technical and Quality 14001 experts of the office to ev a l ua te th e c on dition , s a fety a n d n a v iga tion a l mea s ures a n d pra c tic es impl emen ted. I n a ddition , th ere a re ma n y on boa rd tra in in g progra ms a n d C omputer Ba s ed T ra in in gs (C BT ) promotin g tra in in g on th e fiel d a n d l ea rn in g th rough repetition . T h e S M S s ys tem of D a n a os S h ippin g h a s been awa rded with a n I S O 9001 & I S O 1 4 0 0 1 . On top of th e R egul a tory req uiremen ts , D a n a os S h ippin g h a s a ppl ied a Green Pol ic y with rega rd to th e c h emic a l c ompos ition us ed on boa rd, a n d a Ga rba ge M a n a gemen t pl a n th a t proh ibits dis pos a l a t s ea a n d on l y to s h ore fa c il ities .

Da n a o s Sh ip p ing co ns ta ntly p ra ctice s the n ec es s a r y d u e d ilig e nce w ith re g a rd s t o en vi ro n m e nta l p ro te ctio n. A ny p ro ce d u re a do pt ed a nd a ny a ctio n ta k e n co ns id ers t h i s i n t eres t as th e o u tmo s t p rio rity . S ince th e mo s t co mmon I n thi s C h a p t er re a s o n f o r th e s p illag e s G R I 306- 3 is th e h u ma n f acto r, th e minimiz atio n to t h e expo su re o f any ris k a s s o cia te d w ith po l l u t i o n is a ch a lle ng ing ta s k . D anaos Sh i ppi n g h a s d e ve lo p e d a s trict S af e ty Ma n a gem e nt S y s te m a nd p o licie s th a t pro m o t e p o llu tio n p re ve ntio n a s p ar t of t h e C o m pany ’ s cu ltu re . N o t o nly is th e i m po r t a n c e o f I nter natio nal C o nve ntio n s a n d Regu l a tio ns b e ing e mp h a s iz e d , bu t i t ha s t a ken o ne s te p f u r th er to p re d ict a nd

Ship's Chemical Consumption (kg) 26.932 27.000

25.616 24.731

26.000 25.000 24.000 23.000 2017

2018

2019

Sh i p ’s C h e m i c a l C on s u m p ti on ( k g) 2 0 1 7 - 2 0 1 9

50


SUSTAINABILITY REPORT 2019

We a re c o ns tantly o p era ting w ith “ z ero s pi l l s” a s o u r ma in g o a l, s o it is no t a c o i n c i den c e th a t, in 2 0 1 9 , D a na o s S h ip p ing ha d a z ero o il s p illag e re co rd , s o me th in g w hi c h rew a rd s th e s tru ctu re and th e e f f o r ts o f t he C o mp a ny a nd its ma na g e me n t. Th ese effor ts inclu d e , a mo ng o th ers , a c o m preh en s ive s erie s o f s e mina rs an d t h e su perinte nd e nce mo d er niz a tio n w h ic h a i m s t o en h a nce ins p e ctio n e f f icie ncy . We a l s o h a ve ta k e n me as u re s to imp rove the m a n a gem e nt o f w a s te g e nera te d by o ur hea dq u a r ters . W e mo nito r th e a verage pa per c o n s u mp tio n p er e mp lo y e e p er d a y , a n d w e t a ke s te p s to inf o r m o u r e mp lo y e e s how t h ey ca n re d u ce th e ir co ns u mp tio n of pa per . I n 2 0 1 9 th e co ns u mp tio n o f A 4 s heet s i n o u r o f f ice w as 2 5 . 5 s h e e ts p er em pl o y ee p er d a y .

pol ic ies a n d proc edures . T owa rds th a t en d we h a ve a men ded th e Pl a n n ed M a in ten a n c e S ys tem and s h ip’s in s pec tion in order to ta k e furth er in to a c c oun t th e c on tributin g fa c tors to c a rgo s a fety. T h e HR & T ra in in g D epa rtmen t (HR & T ) h a s a l s o devel oped a n d a ppl ied on boa rd th e “ K n ow Your V es s el ” c a mpa ign , to el imin a te ris k s of ba d opera tion a n d mis j udgmen t, tra in in g c ours es for s h ip pers on n el , in - h ous e n a v iga tion s imul a tion s a n d n umerous c ours es for C ompa n y s ta ff. A l s o, th e C ompa n y mon itors th rough WA V ES th e c a rria ge of D G to k eep s ta tis tic s a n d a l ert th e a tten tion of pa rties in v ol ved. B al l as t Water D a n a os S h ippin g is c ommitted to protec tin g th e a q ua tic en v iron men t by adopting a Ballast Water exchange policy for a l l ma n a ged ves s el s , wh ic h preven ts th e tra n s fer of h a rmful a l ien a q ua tic s pec ies from on e region to a n oth er

D an g ero u s G o o d s C a rgo T ran sp o r t a t i o n When ever w e tra ns p o r t d a ng ero u s g o o d s ( DG ) w e a p p ly s p e cif ic p o licie s a nd pro c edu res in o rd er to e ns u re p re ve ntio n of a c c i den t s to p ers o ns o r p ro p er ty as w e ll a s t o t h e en viro nme nt. O n a n annu a l b a s is we c a r r y m o re th an 7 5 0 0 0 to ns o f d ang ero us go o ds. Mitig a ting th e ris k s as s o ciated w i t h ha z ard o u s materia ls re qu ire s th e a ppl i c a t i o n o f s a f e ty p re ca u tio ns d u rin g t h ei r t ra n s p o r t, u s e , s to rag e and d is p o s a l . Wi t h resp e ct to th e tra ns p o r ta tion of da n g ero u s goods, our major respo n si b ilitie s are : a ) To pre s e nt w ith a ccu racy th e s h ip ’s s pec i fi c a t io n, co ncer ning D G ca r ria g e o n b o a rd. b ) To s i gn tra ns p a re nt and co mp re h e ns ive c o n t ra c t s / ch ar ter p ar tie s w ith clie nts; DG c a r ri a g e , limitatio ns and re s trictio n s ha ve t o b e cle ar ly a d d re s s e d to inv o lve d pa r t i es . c ) To exercis e d u e d ilig e nce in th e s h ip ’ s o pera t i o n s . d) To c a rr y o u t p ro p er mainte nance in o rder t o av o id h a z ard s and d ama g es t h a t m i gh t le ad to D G ca rg o d ama g e an d a dverse c o ns e qu e nce s . We c o n stantly s trive to imp rove o ur perfo r m a nce a nd th e e f f icie ncy o f o ur

51


DANAOS SHIPPING CO. LTD

t h ro u gh Balla s t w a ter . W ith in 2 0 1 9 o nl y, a tota l vo l u m e o f 5 9 9 6 2 0 9 . 8 cu bic me ters o f b a l l a s t wa ter ha s b een e x ch a ng e d th ro u g h th e D a na os S h ippin g P I N G fl eet , co ntrib u ting to th e s ig nif ica n t goa l of m a ri n e env iro nme nt p ro te ctio n and e nv iron men ta l fo o t pri n t re d u ctio n. D anao s S h ip p ing is aimin g to go o n e s t ep f u r th er , to e x p lo re p o s s ibilitie s of furth er effi c a c y . T h e R &D D e p a r tme nt o f D anaos S h ippin g ha s t h o ro ug h ly inve s tig ate d th e o p timum s ol ution o f t he a l i e n s p e cie s ’ e limina tio n th ro u g h th e us e of B a l l a s t Wa ter M a na g e me nt S y s te m a v a ila bl e on th e m a rket . E a ch o f th e s e s y s te ms w as e v al ua ted for i t s effi c i e ncy , te ch nica l co mp e te nce , opera tion a l fl exi b i l i t y , d u ra b ility a nd e nv iro nme ntal f rien dl in es s , b a s ed o n its o p eratio nal p rincip le cer tific a tion a n d a c c ept a n c e by th e I M O , U S A E nv iro nme ntal Protec tion Agen c y a n d th e E u ro p e an C o mmitte e . I n 2 0 1 8 th e fi rs t B WM s y s te m w as s u cce s s f u lly insta l l ed a n d c o m m i s s i one d o nb o a rd o u r f irs t ve s s el , wh il e a l l vess el s a re u p g rad e d w ith “ re a d y - to - u s e ” rec eption o f pi pel i n e s w h ich w ill e x p e d ite th e ins ta l l a tion of t h e s el ec te d B a llas t W a ter T re atme nt eq uipmen t. At t he s a m e time , D anao s S h ip p ing u s e s a n tifoul in g pa i n t s o f t h e late s t te ch no lo g y - w h ich a re T BT F ree- , c o n t a i n i n g bio cid e s th at a re no n- bio - a cc umul a tive t o t he a q uatic o rg anis ms and are d e g raded a n d det o xi fi ed i n th e e nv iro nme nt, co mp ly ing with ex is tin g en vi ro n m e nta l re g u latio ns and f u tu re l egis l a tion . We a i m t o p re s erve th e g o o d re co rd s from th e i m pl em en t a tio n o f th e B a llas t W a ter M a n a gemen t P l a n a n d, th ro u g h th e a d o p tio n o f ne w t ec h n ol ogy, t o fu r t h er imp rove o u r e nv iro nme nta l f ootprin t a n d c o n t ri b u t e to a cle a ner ma rine e nv iro nme n t.

2017

2018

2019

Total Ballast (m3)

6,073,075.1

5,969,978.4

5,996,209.8

Ballast exchange increase compared to last year

9.5% (decrease)

1.7% (decrease)

1.3% (decrease)

Change in FO consumption per ton of ballast exchange compared to last year

3.6% (decrease)

8.0% (increase)

+8.6% (increase)

B a l l a s t w a ter p erf or m a n c e

More information on our waste and spill management and performance can be found in our environmental report.

52


SUSTAINABILITY REPORT 2019

M AT E R IA L ISSU E : Emissions

GRI GRI GRI GRI GRI

3 05- 1 3 05- 4 3 05- 5 3 05- 6 3 05- 7

We mo nito r clo s e l y o u r e mis s io ns d u e t o o u r commitment towards reducing our imp act t o clima te ch a ng e , as w e ll a s d u e to co mp liance to laws a n d regu l a tio ns . O u r E mis s io ns C o ntrol Sc hem es i n clu d e s : • CO 2 INDEX pilot with GL • WPCI ESI INDEX • Green Passpor t SoC by KR for 10,100 TEU series vessels • Cer tification of Inventory of Hazardous Materials Cer tificate by DNV-GL for 13,100, 8,500 and 3,400 TEU series vessels • Ship Energy Efficiency Management Plan Statement of Compliance with GL • Annual environmental repor ting concerning environmental safety (emissions KPIs) and technical initiatives to improve performance

Al l em i ss io n re late d g rap h s a nd me trics a re pres en ted in deta il in th e en v iron men ta l report. Th ese m etrics inclu d e C O 2 , N O x , S O x . Environmental Implementations about Emissions CO 2 Emissions are monitored and calculated from 2010 onwards.

SEEMPs have been on Danaos Shipping vessels since 2013. SEEMP goals are evaluated every year from vessels’ consumptions and operational profile.

CO 2 Emissions calculations are incorporated in Danaos Shipping WAVES with quarterly produced reports, indicating the cumulative emissions per quarter per vessel.

Environmental Report is produced every year including CO 2 SOx NOx emissions and efficiency indexes.

Danaos Shipping has voluntarily taken part in DNVGL’s EEOI certification program from 2008 onwards. E m i s s i on s e n vi ron m e n ta l i m p l e m e n ta ti on s

53


DANAOS SHIPPING CO. LTD

O zo n e D e p l e t i ng S u b s t a nc e s Da n a o s Sh ip p ing h as inco rp o ra te d th e modific a tion s from th e ol d s ys tems to th e n ew on es a n d, a c c o rdi n g to th e re g u la tio ns , a ny d e lib era te emis s ion of OD S is proh ibited. F or n ew buil din g ves s el s , a n y i n st a l l atio n co nta ining O D S , s u ch as h a l on s a n d c h l orofl uoroc a rbon s (C F C s ), is proh ibited. T h e Freo n Ty pe s in u s e a re R - 4 0 4 A and R - 4 07C . F reon l os s es for 2019 were a t 7 % of th e tota l c a pa c ity ( 1 2 8 0 k g a p p ro x imate ly ) . S ince 2 0 1 6 w e h a ve ma n a ged to reduc e our F reon l os es from 11% to 7%.

Total Freon Capacity (tns) 18,8 19 19 18 18 18 18

18,2

2017

18,2

2018

2019

Total Freon Capacity (tns) 2017-2019

Total Freon Losses (%) 10.0 8.0

10

7.0

8 6 4 2 0 2017

2018

2019

Total Freon Losses (%) 2017-2019

We pl a n to re d u ce g re e nh o u s e g as e mis s ion s a n d mitiga te c l ima te c h a n ge, ba s ed on EU F - ga s Regu l a t i o n ( 5 1 7 / 2 0 1 4 ) ad o p te d 1 J an 2 0 1 5 for reduc tion of us e of HF C s . A s erv ic e ba n on HF C s w i t h h i gh G lo b a l W ar ming P o te ntia l ( G W P >2 , 5 0 0 ) l ik e R - 4 0 4 A , R - 507 a n d R - 4 2 2 D h a s been impos ed s i n c e 1 J a n 2 0 2 0 . T h e F - g a s re g u latio n a ppl ies to a l l EU c oun tries a n d EU fl a gged ves s el s . T h erefore, repl en i shme nt o f re tro f it o f s y s te ms w ith l ower GWP refrigera n ts ta k es pl a c e wh ere req uired.

54


SUSTAINABILITY REPORT 2019

M AT E R IA L ISSU E : Environmental Compliance

I n thi s C h a p t er

W e h a ve e s ta b lis h ed a nd imp le me nte d a G R I 3 07- 1 ro bu s t E nv iro nme nta l Management System to comply with relevant n a t i o n a l a nd inter natio nal le g is latio n , regu l a t i o ns and v o lu ntar y initia tive s w h ic h t h e c o m pany s u b s cribe s to . A s a n e x a mp le, w e a re a n active me mb er o f th e H e lle ni c Ma ri n e E n v iro nme nt P ro te ctio n A g e ncy . O u r fl eet s y s te ma tica lly co mp lie s w it h o r exc ee d s e nv iro nme nta l law s an d regu l a t i o ns . O u r ad v ance d s o lu tio ns ( s u ch el ec t ro n i c a lly co ntro lle d e ng ine s ) are desi gn ed to o p timiz e f u e l e f f icie ncy w h ile redu c i n g e mis s io ns – w h ich h e lp ta ck l e gl o b a l w a r ming . Da n a o s Sh ip p ing is co mmitte d to o p eratin g a t a l l t i m e s w ith in th e bo u nd arie s of en vi ro n m e nta l law s and re g u latio ns, s u c h a s t h e s tand ard s imp o s e d by th e I MO , t he U . S . O il P o llu tio n A ct o f 1 9 9 0, C E RC L A (s p ills and re le as e s o f h az a rd o us s u b st a n c e s ) , T h e C le an W ater A ct, T h e C l ea n Ai r A ct, and th e E U M R V re g u la tio n. We c a refu lly e x amine p o te ntia l incid e nts o f n o n -c o mp lia nce a nd w e s e t ap p ro p riate a c t i o n pl a ns to inve s tig ate th e incid e n t a n d t o en su re th a t s imila r incid e nts d o not o c c u r i n t h e f u tu re . Du ri n g 2 0 1 9 th ere w ere no incid e nts of n o n -c o m pl ia nce w ith e nv iro nme nta l laws a n d regu l a tio ns .

55


DANAOS SHIPPING CO. LTD

M AT E R IA L ISSU E : Emergency Preparedness

poten tia l emergen c y s itua tion s , a n d we h a ve prepa red pl a n s for ea c h on e. T h es e pl a n s a re c ommun ic a ted to a l l empl oyees a n d c rew members , a n d a t th e s a me time we prov ide tra in in g (c omputer- ba s ed a n d ph ys ic a l ) in order for th em to be rea dy to res pon d in emergen c y s itua tion s . A n importa n t pa ra meter in our emergen c y prepa redn es s s ys tem is our h a n ds - on ma n a gemen t s ys tem on boa rd every ves s el , deta il ed in th e S h ip S ec urity Pl a n (“ S S P” ). M ea s ures s tipul a ted in th e S S P a re des ign ed to preven t a n y un l awful a c t l ik el y to j eopa rdiz e th e s a fety a n d s ec urity of pers on s , property a n d en v iron men t. A l l empl oyees , c rew members , v is itors , in s pec tors , s uppl iers , a n d a n y th ird pa rty s eek in g to boa rd th e s h ip, a re a l s o req uired to c ompl y with th e S S P.

I n thi s C h a p t er

D anao s S h ip p ing h a s ta k e n a ll ne ce s s a ry G R I 4 03- 2 measures and resources G R I 3 07- 1 in o rd er to p ro te ct o ur employees and crew, as well as our operations a n d vess e ls , in ca s e s o f e merg e ncy . W e m o n i t o r c l o s e ly a ll p ara me ters in o rd er t o en su re th a t a ll e qu ip me nt and ve s s e ls a re k ept i n to p o p era ting o rd er . W e h a ve est a b l i she d p ro ce d u re s to id e ntif y a l l O u r SSP en tails : • S a f e g ua rd s fo r p a s s en gers a n d c rew • Proce d u res t o p ro t ec t p o r ts a n d t h e commun i t y a t l a rge • C onting e n c y m ea s u res i n t h e even t o f a s e curity b rea c h • C omp re h en s i ve t ra i n i n g • A ctive p ro m o t i o n o f s ec u ri t y aw a ren es s a mong p ers o n n el b o t h a s h o re a n d o nb oa rd • R e g ula r d o c u m en t ed i n t erv i ew s , i n t er n a l a ud its a n d s ec u ri t y a s s es s m en ts • Ong oing rev i ew a n d u p d a t e o f c o m p an y s e curity p o l i c y a n d m ea s u res

C ri s i s Ma n a g e me nt u nd er ta k e n by D a na os S h ippin g is prepa red to dea l in th e mos t effic ien t wa y with a n y I n c i dent th at mig h t e v o lve into a C risis , preven t it if fea s ibl e or h a n dl e th e proc es s a n d c on ta in it. A s pec i fi c E merg e ncy R e s p o ns e P lan a nd a n in h ous e Emergen c y R es pon s e S erv ic e s ys tem h a ve been devel o ped to s u p p o r t th e w h o le p ro ce s s a n d prov ide s pec ific in s truc tion s a n d ta s k a l l oc a tion s on a per c a s e b a s is .

56


SUSTAINABILITY REPORT 2019

M AT E R IA L ISSU E : Risk Management

s ec urity regul a tion s , pira c y ris k s , ma rin e dis a s ters , a n d en v iron men ta l a c c iden ts . We prov ide a deta il ed a n a l ys is in our A n n ua l R eport of a l l th e ris k s th a t we h a ve iden tified a n d in fl uen c e our performa n c e in v a rious l evel s wh ic h c a n be l oc a ted in th e c orpora te w e b s ite (https://www.danaos. com/investors/financial-information/annualreports/default.aspx). A t th e s a me time we h a ve pol ic ies a n d proc edures for ris k a s s es s men t on boa rd our ves s el s . T h es e pol ic ies a n d proc edures a im a t th e iden tific a tion , a s s es s men t a n d ma n a gemen t of ris k s on boa rd in order to determin e th e bes t c ours e of a c tion (e. g. el imin a tion , or s ubs titution ). On c e a n a ppropria te c ours e of a c tion h a s been determin ed our proc es s es in c l ude rev iew of th e a c tion pl a n , re- ev a l ua tion a n d c orrec tive mea s ures if n ec es s a ry.

I n thi s C h a p t er

There are a number of risks associated with the G R I 4 03- 2 shipping industry. T h e se ri sk s c a n be cla s s if ie d th ro u g h mu ltip le a spec t s o f ris k inclu d ing bu s ine s s , s af e ty, en vi ro n m e nta l, s to ck a nd tax re la te d, a n d o pera tio na l ris k s . . F o r ins ta nce , w e i den t i f y a s ris k s th e climate ch a nge a n d green h o u s e g as re s trictio ns a nd how t hey w ill imp act o u r b u s ine s s , th e i n c rea sed ins p e ctio n p ro ce d u re s and ne w

M AT E R IA L ISSU E : Audits, Inspections and Surveys

I n thi s C h a p t er

F o r D a na o s S h ip p ing , g o o d re co rd s in P S C G R I 403- 2 ( p o r t s ta te co ntro l ) G R I 307- 1 e x a mina tio ns are a n ind ica tio n o f a s o u nd s a fet y m a nag e me nt s y s te m and as s o ciated c u l t u re w ith in th e o rg a niz a tio n. A p art fro m t he re g u lato r y P S C ins p e ctio ns , T h e Da n a o s Sh ip p ing f le e t is a ls o s u b je ct to th e a n n u a l sa f e ty ins p e ctio ns p erf o r me d b y o u r Fl a g Sta te s . A ll re co rd e d d e f icie ncies a re i m m ed ia te ly re ctif ie d and p re ve ntive a c t i o n s a re tak e n to th e s atis f actio n of t h e l o c a l Po r t S tate C o ntro l. A d d itio nally, o n a C o m p a ny le ve l, th e d e f icie ncie s are c o l l ec t i vely analy z e d - e v alu ate d to av o i d repet i t i o n o f s imilar d e f icie ncie s an d

th e n ec es s a ry c orrec tive mea s ures a re c irc ul a ted for tra in in g purpos es to th e res t of our fl eet. A t pres en t, D a n a os S h ippin g s ta n ds a s a High Performa n c e C ompa n y in th e Pa ris M OU a n d ma in ta in s a n ex c el l en t in s pec tion rec ord in th e US C oa s ta l Gua rd (US C G). A uditin g is a n on - s ite verific a tion proc es s , s uc h a s in s pec tion or ex a min a tion , to verify th a t th e C ompa n y’s a c tiv ities a n d res ul ts c ompl y with th e pl a n n ed a rra n gemen ts a n d req uiremen ts . T h ere a re two c a tegories of a udits wh ic h a re rel a ted to D a n a os S h ippin g a c tiv ities : th e in tern a l a n d th e ex tern a l a udits . Both a re c on duc ted with in th e C ompa n y a n d on boa rd ves s el s to verify c ompl ia n c e with th e es ta bl is h ed s a fety

57


DANAOS SHIPPING CO. LTD

a n d en vi ronme ntal law s a nd re g u la tio ns . Th e i n t er n al au d its a re s ch e d u le d o n th e b a s i s o f t h e s ta tu s and imp o r tance o f th e s y s t em t o be au d ite d and are ca r rie d o ut b y perso n n e l w h o : Are i n de p e nd e nt f ro m th e p ers on respo n si b le f o r th e a re a to b e a u d ite d , a nd H a ve rec ei ve d ap p ro p riate tra ining . Al l s y s t ems o f D anao s S h ip p ing S af e ty Ma n a gem e nt a re au d ite d a t le a s t to the m i n i m u m re qu ire me nts ( o nce p er y e a r i n t he H ea d O f f ice and no t e x ce e d ing 12 m o n t h s o n b o a rd e a ch ve s s e l) and a t a ny grea t er fre qu e ncy , a s d e e me d ne ce s s a r y , i n a c c o rda n ce w ith th e s ta tu s a nd imp o r tance o f t h e a c tiv ity . A u d its are co o rd ina te d b y t h e Sa f e ty Qu ality a nd E nv iro nme nta l Depa r t m en t. U ns ch e d u le d a u d its a re perfo r m ed if a s erio u s d e f icie ncy in a ny pa r t o f t he D S M S be co me s e v id e nt d u rin g t h i rd pa r t y ins p e ctio ns , f ro m accid e nts a nd ha z a rdo u s o ccu r re nce s , re v ie w o f re co rds o r du ri n g ro u tine o p eratio ns . T ime l y c o r rec t i ve actio n is u nd er ta k e n f o r bo th s ho re a n d s h ip b o a rd d e f icie ncie s , w h ic h do es n o t e x ce e d 3 mo nth s . A u d it f ind ing s, N o n C o n fo r mitie s o r O b s erv atio n no te s a re c o l l ective ly analy z e d and e v a lu a te d du ri n g t he ma na g e me nt re v ie w p ro ce s s,

s o th a t a n y us eful outc ome c a n be util iz ed a n d in c orpora ted in s ys tem rev is ion a n d ma n a gemen t of c h a n ge. F in din gs th a t pos e a s erious th rea t to th e s a fety of pers on n el or th e s h ip or a s erious ris k to th e en v iron men t a re a n a l yz ed with th e R C A meth od a n d immedia te c orrec tive a c tion is un derta k en . T h ird pa rty a udits a re performed by a n R O member of I A C S a n n ua l l y a t th e D a n a os S h ippin g Pira eus offic e a n d twic e with in a 5 yea r c yc l e on boa rd. T h e ma in purpos e of th es e th ird pa rty a udits is to ma in ta in th e v a l idity of th e C ompa n y D . O. C . a n d V es s el S . M . C . by verifyin g th e effec tiven es s of th e C ompa n y S M S . T h e res ul ts of th es e a udits a re a l s o a n a l yz ed with th e R C A meth od a n d th e c orrec tive a c tion s a re in c orpora ted with in our s ys tem. D urin g 2 0 1 9 we h a ve performed 69 in tern a l a udits a s wel l a s 1 9 th ird pa rty a udits c a rried out by D NV GL, K R a n d LR to en s ure th a t our s ys tems rema in in c ompl ia n c e with th e I S M / I S PS C ode, th e I S O 9 0 0 1 , I S O 1 4 0 0 1 , I S O 5 0 0 0 1 s ta n da rds a n d th e M LC C on ven tion . 4 4 M LC in s pec tion s were c a rried out by q ua l ified M LC a uditors with out ma j or defic ien c ies a n d ves s el s were c ertified s uc c es s ful l y.

Year

2017

2018

2019

Internal Audits

65

67

69

External (3rd Party) Audits

23

30

19 Internal and external audits

PSCI-FSI Defects Comparison Table Insp/Vsl.

Def per Ins.

% Ins.w/o d

ISM rel.

2017

3.59

0.69

71%

0%

2018

3.65

0.59

79%

0%

2019

3.34

1.00

70%

0.14%

IPSCI-FSI defects comparison table (2017-2019)

58


SUSTAINABILITY REPORT 2019

In pursuit of managerial excellence, we have est a b l i she d o u r ow n KP I s by p a r ticip a ting i n t h e B IMC O S HI P P I N G KP I s p ro g ram, f ro m t h e ea r l y s ta g e s o f its ince p tio n. B I M CO SH I P P I N G KP I s allow s s h ip - ow ners an d m a n a gers t o co mp are th e ir s h ip s ’ e f f icie ncy a ga i n st t h e p erf o r ma nce o f th e ind u s try a n d s ec t o r avera g e s . I t is a w e ll- o rg aniz e d s t a n da rd, co ns is ting o f 6 4 d if f ere n t perfo r m a nce ind icato rs ( P I s ) w h ich are di rec t l y o b s erv able o r me as u ra b le w ith i n t h e C o m pany ( inclu d ing : nu mber o f f ire i n c i den t s, e x p o s u re h o u rs , nu mb er of n a vi ga t i o n al re la te d d e f icie ncie s , nu mb er o f c o l l i s i o n s e tc. ) . T h e P I s th e n f o r mu late the next level of Key Performance Indicators ( K P Is ) w h ich me as u re th e C o mp any ’ s perfo r m a nce in re la tio n to th e ta rg e t s et. Th e t a rget is co mmo n f o r all p ar ticip ant s a n d a c c ept e d a s th e ind u s tr y s ta nd a rd . On t h e h i ghes t le ve l, th e KP I s co mbine w ith t h e shi ppi ng P erf o r mance I nd e x e s ( S P I s ) in o rder t o e x p re s s th e overall p erf o r mance w i t hi n s pec if ic main a re a s s u ch as :

• H e a lth a n d s a fet y m a n a gem en t a n d p erf orm a n c e • H R ma na gem en t p erfo r m a n c e • Env ironm en t a l p erfo r m a n c e • N a v ig a ti o n a l s a fet y p erfo r m a n c e • Op era tio n a l p erfo r m a n c e • S e curity p erfo r m a n c e a n d Tec h n i c a l p erf orm a n c e

Shi pp i n g P erf orm a n c e In d e xe s 1 00 75 50 25 0

Environmental Performance

Health & Safety Performance

HR Management Performance

Navigational Safety Performance

59

Operational Performance

Security Performance

Technical Performance

Post State Control Performance


DANAOS SHIPPING CO. LTD

A ctio ns and Future Goals

Topics

Actions for 2019-2020

More employees’ engagement to volunteering

Additional and focused on specific needs training

Progress

Achieved

Conduct a 360 employee survey (offices) with the view to provide constructive feedback

Achieved

Additional Training more focused on specific needs including Sustainability topics

Employees

Well trained and familiar with new technologies and regulations employees to be competitive and achieve better performance

Society

Achieved

Well trained and familiar with new technologies and regulations employees to be competitive and achieve better performance. Issue a Code of Conduct for all Stakeholders

Ongoing

Maintain a high level of safety culture among crews through training onboard and ashore

Focus on systematic analysis of the information retrieved through the Near-Miss reporting

Ongoing

Focus on systematic analysis of the information retrieved through the Near-Miss reporting.

Improve the flow of communication between ship and office

Ongoing

Improve the flow of communication between ship and office

Achieved

Explore new areas of need in the community and pick up initiatives with high societal impact

Maintain a high level of safety culture among crews through training onboard and ashore

Crew

Goals for 2020-2021

Explore new areas of need in the community and assist accordingly

60


SUSTAINABILITY REPORT 2019

Topics

Actions for 2019-2020

Progress

Total collection & segregation of recycled materials. Total collection /recycling Shipboard & Office

Aim to complete Inventories for 45% of the Fleet during 2019 and finalize the issuance of Inventories for the vessels required as per EU Regulation during 2020

Environment

Continue with the monitoring of issuance of necessary declaration forms and statements for the proper follow up of approved Inventories To adopt new environmental friendly technologies, i.e. Scrubbers on the agreed vessels in the view of IMO 2020 regulation and BWMS on all vessels in the view of Ballast Water Management regulation. The target is to ensure the successful installation and smooth operation onboard

Customers & Suppliers

85% (from 70%) of our major suppliers and more than 70% (50%) of our medium and small suppliers to been characterized as “green suppliers” through the assessment of relevant certifications they hold

Improving procurement policies and procedures, all key elements which contribute to responsible practices. Special attention to the extensive use of environmentally responsible vendors

61

Goals for 2020-2021

Ongoing

Further decrease the paper consumption in offices, and increase the recycling of materials generated shipboard and in the company offices

Ongoing

Aim to complete Inventories for 45% of the Fleet during 2019 and finalize the issuance of Inventories for the vessels required as per EU Regulation during 2020

Achieved

Continue with the monitoring of issuance of necessary declaration forms and statements for the proper follow up of approved Inventories

Ongoing

Adopt new environmental friendly technologies, i.e. Scrubbers on the agreed vessels in the view of IMO 2020 regulation and BWMS on all vessels in the view of Ballast Water Management regulation. The target is to ensure the successful installation and smooth operation onboard

Ongoing

85% (from 70%) of our major suppliers and more than 70% (50%) of our medium and small suppliers to been characterized as “green suppliers” through the assessment of relevant certifications they hold

Achieved

Update procurement policies and procedures to include more sustainability related topics (social, labor and environmental) and partners’ surveis


DANAOS SHIPPING CO. LTD

O ur C o mmitmen t to th e UN S ustainable Developm ent Goals I n thi s C h a p t er A t D a na o s S h ip p ing w e ha ve a dopted th e Un ited Na tion s A gen da 2 0 3 0 , a s ex pres s ed in th e f o r m o f th e S u s ta in a bl e D evel opmen t Goa l s for 2 0 3 0 . I t is our dec is ion to G R I 102- 1 6 a ctive ly co ntribu te to t h eir a c h ievemen t, th rough th e promotion of en v iron men ta l pro t ec t i o n, h e a lth a nd s af e ty and innov a tion . We h a ve ma d e it o u r p rio rity to co ntrib ute towa rds th e Goa l s (S D Gs ) th a t a re direc tl y l in k ed to our a ctiv itie s a nd a ll is sues th a t a re ma teria l to D a n a os S h ippin g, a s wel l a s th os e th at are co ns id ere d S ec tor c h a l l en ges . Here bel ow you c a n fin d a l is t th a t l in k s o u r materia l is s u e s an d in itia tives with th e S us ta in a bl e D evel opmen t Goa l s th a t a re clo s e ly link e d w it h our a c tiv ities a n d opera tion s .

SDG

Issue – GRI Indicators

Our Response – Reference

Occupational Health and Safety

Occupational Health and Safety

GRI 403-1

Material Issue: Emergency Preparedness

GRI 403-2

Material Issue: Risk Management

GRI 403-3 GRI 403-4 GRI 403-5 GRI 403-6 GRI 403-7 GRI 403-9 Emergency Preparedness Risk Assessment

Material Issue: Training and Education

Training and Education GRI 404-1 GRI 404-2

GRI 102-8

Who we Are – Our Employees

GRI 401-1

62


SUSTAINABILITY REPORT 2019

Energy Consumption

Material Issue: Energy Consumption

GRI 302-1

Material Issue: Waste and Spill Management

GRI 302-5

Material Issue: Audits, Inspections and Surveys

Waste and Spill Management GRI 306-3 Audits, Inspections and Surveys Energy Consumption

Material Issue: Energy Consumption

GRI 302-1

Material Issue: Emissions

GRI 302-5 Emissions GRI 304-1 GRI 304-4 GRI 304-5 GRI 304-6 GRI 306-7

Material Issue: Waste and Spill Management

Waste and Spill Management GRI 306-3 Emergency Preparedness Risk Assessment

Environmental Compliance

Material Issue: Environmental Compliance

GRI 307-1

Material Issue: Emergency Preparedness

Risk Assessment

Material Issue: Risk Management

Employee and Society Engagement

Engaging with Employees, Society and Academic Community

GRI 102-12

63


DANAOS SHIPPING CO. LTD

GRI S tandards Index T h e p res en t S us ta in a bil ity R eport of D a n a os S h ippin g is th e I n thi s C h a p t er : GRI 102-3, GRI 102-10, GRI 102-41, GRI 102-48, C o mp a n y’s fourth a ttempt to c ommun ic a te its s us ta in a bil ity GRI 102-49, GRI 102-51, GRI 102-54, p erf orma n c e, a n d c overs our a c tiv ities durin g 2 0 1 9 . I t wa s GRI 102-55, GRI 102-56 e v alua ted by th e C en tre for S us ta in a bil ity a n d Ex c el l en c e (C S E) a c c o rdi n g to th e re p o r ting g u id e line s o f GR I S T A ND A R D S a n d wa s verified a s a n “ in - a c c orda n c e c ore” G RI St a n da rd s R e p o r t. GRI STANDARDS Number

Disclosure Title

Reporting Requirements General Disclosures Company Profile

GRI 102-1

Name of the organization

Who we are

GRI 102-2

Activities, brands, products, and services

Who we are

GRI 102-3

Location of headquarters

3, Christaki Kombou Str., 3011, Limassol, Cyprus 14, Akti Kondyli Str., 18545, Piraeus, Greece

GRI 102-4

Location of operations

Who we are

GRI 102-5

Ownership and legal form

Who we are – Ethics & Corporate Governance

GRI 102-6

Markets served

Who we are

GRI 102-7

Scale of the organization

Who we are

GRI 102-8

Information on employees and other workers

Who we are – Our Employees

GRI 102-9

Supply chain

Who we are – Supply Chain

GRI 102-10

Significant changes to the organization and its supply chain

No significant changes during the reporting period

GRI 102-11

Precautionary Principle or approach

Who we are

GRI 102-12

External initiatives

Engaging with Employees, Society and Academic Community. Our Commitment to the UN Sustainable Development Goals.

GRI 102-13

Membership of associations

Who we are Strategy

GRI 102-14

Statement from senior decision-maker

Message from the Company’s Management

Ethics and Integrity GRI 102-16

Values, principles, standards and norms of behavior

Who we are

Governance GRI 102-18

Governance structure

Who we are – Ethics & Corporate Governance Stakeholder Engagement

GRI 102-40

List of stakeholder groups

Our Approach to Sustainability and Corporate Responsibility

GRI 102-41

Collective bargaining agreements

Danaos Shipping follows all national laws and regulations regarding collective bargaining agreements, and during 2019 there were no incidents of noncompliance recorded

64


SUSTAINABILITY REPORT 2019

GRI STANDARDS Number

Disclosure Title

Reporting Requirements

GRI 102-42

Identifying and selecting stakeholders

Our Approach to Sustainability and Corporate Responsibility

GRI 102-43

Approach to stakeholder engagement

Our Approach to Sustainability and Corporate Responsibility

GRI 102-44

Key topics and concerns raised

Our Approach to Sustainability and Corporate Responsibility

GRI 102-45

Entities included in the consolidated financial statements

Who we are

GRI 102-46

Defining report content and topic Boundaries

Our Approach to Sustainability and Corporate Responsibility

GRI 102-47

List of material topics

Our Approach to Sustainability and Corporate Responsibility

GRI 102-48

Restatements of information

There are no restatements of information between this and previous reports

GRI 102-49

Changes in reporting

There are no significant changes in our sustainability reporting process

GRI 102-50

Reporting period

About the Sustainability Report 2019

GRI 102-51

Date of most recent report

Our previous report was published in 2019 for our 2018 sustainability performance and initiatives

GRI 102-52

Reporting cycle

About the Sustainability Report 2019

GRI 102-53

Contact point for questions regarding the report

About the Sustainability Report 2019

GRI 102-54

Claims of reporting in accordance with the GRI Standards

This report has been prepared in accordance with the GRI Standards: Core Option

GRI 102-55

GRI content index

GRI Index

GRI 102-56

External assurance

We have not sought external assurance for our sustainability report

Report Profile

Specific Disclosures Anti-corruption GRI 103

Management Approach

Who we Are

GRI 205-3

Confirmed incidents of corruption and actions taken

During 2019 there were no confirmed incidents of corruption

Energy Consumption GRI 103

Management Approach

Material Issue: Energy Consumption Environmental Report

GRI 302-1

Energy consumption within the organization

Material Issue: Energy Consumption Environmental Report

GRI 302-5

Reductions of energy requirements of products and services

Material Issue: Energy Consumption Environmental Report

Emissions (Air Pollution) GRI 103

Management Approach

Material Issue: Emissions | Environmental Report

GRI 305-1

Direct (Scope 1) GHG emissions

Material Issue: Emissions | Environmental Report

GRI 305-4

GHG emissions intensity

Material Issue: Emissions | Environmental Report

65


DANAOS SHIPPING CO. LTD

GRI STANDARDS Number

Disclosure Title

Reporting Requirements

GRI 305-5

Reduction of GHG emissions

Material Issue: Emissions | Environmental Report

GRI 305-6

Emissions of ozone depleting substances

Material Issue: Emissions | Environmental Report

GRI 305-7

Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions

Material Issue: Emissions | Environmental Report

Waste and Spill Management GRI 103

Management Approach

Material Issue: Waste and Spill Management Environmental Report

GRI 306-3

Significant Spills

Material Issue: Waste and Spill Management Environmental Report Environmental Compliance

GRI 103

Management Approach

Environmental Compliance Environmental Report

GRI 307-1

Non-compliance with environmental laws and regulations

Environmental Compliance Material Issue: Emergency Preparedness Material Issue: Audits, Inspections and Surveys Environmental Report

Employment GRI 103

Management Approach

Who we are – Our Employees

GRI 401-1

New employee hires and employee turnover

Who we are – Our Employees

Occupational Health and Safety GRI 103

Management Approach

Material Issue: Occupational Health and Safety

GRI 403-1

Occupational health and safety management system

Material Issue: Occupational Health and Safety

GRI 403-2

Hazard identification, risk assessment, and incident investigation

Material Issue: Occupational Health and Safety Material Issue: Emergency Preparedness Risk Management Material Issue: Audits, Inspections and Surveys

GRI 403-3

Occupational health services

Material Issue: Occupational Health and Safety

GRI 403-4

Worker participation, consultation, and communication on occupational health and safety

Material Issue: Occupational Health and Safety

GRI 403-5

Worker training on occupational health and safety

Material Issue: Occupational Health and Safety Material Issue: Training and Education

GRI 403-6

Promotion of worker health

Engaging with Employees, Society and Academic Community

GRI 403-9

Work-related injuries

Material Issue: Occupational Health and Safety Training and Education

GRI 103 GRI 404-1

Management Approach

Material Issue: Training and Education

Average hours for training per year per employee

Material Issue: Training and Education

66


SUSTAINABILITY REPORT 2019

GRI STANDARDS Number GRI 404-2

Disclosure Title

Reporting Requirements

Programs for upgrading employee skills and transition assistance programs

Material Issue: Training and Education

Risk Assessment GRI 103

Management Approach

Risk Management Emergency Preparedness

GRI 103

Management Approach

Material Issue: Emergency Preparedness Audits, Inspections & Surveys

GRI 103

Management Approach

Material Issue: Audits, Inspections and Surveys

This Sustainability Report has been conducted by the Centre for Sustainability & Excellence

67


DANAOS SHIPPING CO. LTD

“The proper use of science is not to conquer nature but to live in it” Barry Commoner

68


ENVIRONMENTAL REPORT 2019

E N VIRONMENT AL REP ORT 2019

69


DANAOS SHIPPING CO. LTD

INT RO I n Da n a o s , it is o u r co mmitme nt and a n i n t egra l p a r t o f th e co mp a ny ’ s cu ltu re t o provi de a f le e t o f h ig h ly e f f icie nt an d o pt i m i z ed ve s s e ls in o rd er to re ma i n c o m pet i t i ve and maintain th e le ad in o ur c l a ss . Th e a pproach w e h ave a d o p te d in th is di rec t i o n is b a s e d o n th re e p illars :

I t is v ita l to gra s p th e probl em q uic k l y a n d to be th e fa s tes t to s ol ve it. I t wa s th is n eed th a t l a id th e foun da tion for th e th ird pil l a r of our s tra tegy, wh ic h wa s th e rea l iz a tion of th e v is ion we h a d s even yea rs a go for th e des ign a n d impl emen ta tion of WA V ES . WA V ES is th e impl emen ta tion a n d digitiz a tion of our idea s a n d 4 0 yea rs of experience, integrated within the company’s bus in es s pl a tform, a n d in c orpora ted in to its work pl a c e c ul ture. WA V ES h a s given us en ormous c a pa bil ities a n d is prima ril y a imed a t bein g a bl e to mon itor c l os el y a n d c on trol th e performa n c e of th e ves s el s a n d, th erefore, th e in ves tmen ts we h a ve ma de. T o rea c h a des ira bl e l evel of emis s ion s , a s eries of mea s ures fol l owed by s peed reduc tion s woul d h a ve to be impl emen ted. I n th is c on tex t, it wa s impera tive to c ompa re th e a c tua l performa n c e of th e ves s el s with th e objectives we had set in order to iden tify a n y dev ia tion s . With th e a l gorith ms we dev is ed, we ma n a ged to preven t th e devel opmen t of performa n c e pen a l ties , wh ic h gives th e c ompa n y a c ompetitive a dv a n ta ge. T h e a bove a re our k ey s teps th a t req uired th a t th e c ompa n y in ves t a roun d $ 8 7 mil l ion over a dec a de. Of th e $ 8 7 mil l ion , a bout $ 4 5 mil l ion is dedic a ted ex c l us ivel y to optimiz in g c on s umption a n d th e reduc tion of emis s ion s .

• T he e s tab l i sh me n t of a n R & D d e pa r tm e n t • T he s tu d y o f 3 8 e n erg y e f f i ci e n cy i m proveme n t me a su re s • T he d e ve l op me n t o f W A V ES d a t a a na lyti c s P l a t f or m O u r R& D d e p ar tme nt is ma d e u p of s pec i a l i s t s inv o lve d in re s e arch , w h o, a m o n g o t h er th ing s , s tu d y a la rg e nu mber o f pro po s a ls f o r o p timiz ing th e e nerg y effi c i en c y o f ve s s e ls , and th ro u g h a p ro ce ss o f i n t er nal e v a lu a tio n, pro po se i nve s ting in th o s e t h ey c o n s id er p o te ntia lly u s efu l a n d e f f e ctive . Th e s t u dy o f 3 8 me as u re s , i s a i m ed at incre a s ing th e en ergy efficie ncy o f ve s s e ls - a pro j e ct th at s tar te d i n 2 0 0 8 a nd co ntinu e s t o t h i s d ay - th ro u g h u pda t i n g d ata a nd ad d ing n ew i n n ov ative s y s te ms t h a t c a n b e a p p lie d to th e c o m pa n y ’ s s h ip s . I n th is c o n t ext , w e h a ve w o rk e d w i t h repu t a b le s h ip p ing p ar tners a nd a re a m o n g t he f irs t to e x ch a ng e f e e d ba ck an d s u ggest i o ns w ith le ad ing liner co mp a nies t h a t b el o n g to o u r clie nts ’ p o r tf o lio s .

Of c ours e, to a l l th e a bove, on e mus t a dd our h uge in ves tmen t in tra in in g peopl e both on boa rd a n d a s h ore a n d th e h uge effort a ppl ied to c h a n ge th e work pl a c e c ul ture a n d en h a n c e peopl e’s awa ren es s , embeddin g a n d a c tive pa rtic ipa tion .

O f c o u rse, th e a b ove me ntio ne d me a s u re s a re n ow w e ll k now n, and s e veral o f th e m ha ve a l rea d y be e n imp le me nte d . F o r us , t h e di ffere ntiatio n lie s in th e w ay o ne can c o n t ro l t h e a ctu a l co ns u mp tio n p e nalty , i den t i fy t h e cau s e and tak e co r re ctive a c t i o n s i m me d ia te ly .

Dimitrio s V astaro uch a s, D eputy C h ief Opera tin g Offic er a n d T ec h n ic a l D irec tor

70


ENVIRONMENTAL REPORT 2019

When the company’s R&D was first established i n respo n s e to th e incre as ing ma rk e t ne e ds a n d, o f c o u rs e , o u r cu s to mers ’ ne e d for effi c i en t a nd e nv iro nme ntally s o u nd ve ss el o pera t i o n , w e p la ce d e mp h as is o n th e s tudy o f en ergy e f f icie ncy o p timiz atio n me th ods fo r ves s el s . T h is inclu d e s o p timiz ing t h e vess el s ’ d e s ig n, th e ir o p era ting p ro f il e, a s w el l a s th e w a y th e ir p erf o r mance is m o n i t o red . I n th is co nte x t, w e h a ve s tu d ied a n d eva l u a te d 3 8 me th o d s o f o p timiz ing t h e en ergy efficie ncy o f ve s s e ls , w h ich w e h a ve c a t ego ri z e d a cco rd ing to th e s y s te m tha t w a s o pt i miz e d : p ro p u ls io n s y s te m ( ma in en gi n e -pro p e ller ) , f u e l, o n bo a rd e nergy m a n a gem e nt, re d u ctio n o f h u ll ro u g h ne s s , i n t erven t i on o n th e h u ll d e s ig n to re d uc e fri c t i o n o r rip p le re s is ta nce , o r imp rove men t o f ves s el o p eratio n. H a vi n g s tu d ie d a ll th e s e me as u re s , we a r ri ved a t a co nclu s io n abo u t w h e th er they w o u ld b e w orth T he pu rpo se o f t h e imp le me nting on W A V E S pl a t f or m i s containerships. to ta ke a d v a n t a g e Of course, the o f bo th o f f i ce a n d expected returns s hi p- ge nera t e d of each measure d a ta to bri n g a d d e d vary and do not v a lu e to D A N A OS work cumulatively. i n a n e nv i ron me n t T h ere f o re , d u rin g w here d a t a f l ow s a re th e f irs t p h a s e, c o ns ta ntly i n cre a si n g we f irs t ha d t o eva l u ate w h ich me a s u re s w ere w o rth i m pl em en t ing o n th e co mp any ’ s ve s s el s , a n d b y t a k ing into a cco u nt e a ch s h ip ’ s h ul l l i n es , eq u ip me nt, a nd s p e cia l f e a tu re s , to a ss ess i t s d y namics th ro u g h C F D s tu d ies a n d m o de l te s ts in e x p erime nta l tan k s . Aft er t hey w ere imp le me nte d , w e w ere abl e t o det er m i ne th e re a l s av ing s f ro m th o s e in w hi c h w e c h o s e to inve s t. T h e ne ce s s ity for eva l u a t i n g th e inve s tme nts d o ne le d to th e c rea t i o n of a s mar t o p era tio na l p la tf orm ( WAV E S) t h at a na ly z e s and p ro ce s s e s d a ta a s a dec i s io n ma k ing s u p p o r ting to o l. Th e pu rpo s e o f th e W A V E S p latf o r m is to ta k e a dva n t a ge o f bo th o f f ice and s h ip - g e nera t ed da t a t o b ring ad d e d v alu e to D A N A O S in a n

en v iron men t wh ere da ta fl ows a re c on s ta n tl y in c rea s in g. I n es s en c e, wh a t we h a ve tried a n d ma n a ged to a c c ompl is h with WA V ES is to c ombin e D A NA OS ’s l on g ex perien c e in s h ip ma n a gemen t with n ew tec h n ol ogies to ma x imiz e th e c ompa n y’s opera tion a l effic ien c y a n d ga in a c ompetitive a dv a n ta ge. T h e pl a tform performs a c ompa ris on between th e a c tua l opera tin g da ta a n d th e da ta we h a d ex pec ted a s a res ul t of th e in ves tmen ts ma de in ea c h s h ip a n d goes on to produc e a utoma tic a l erts in th e even t of dev ia tion s from th e optima l opera tion , th ereby a l wa ys en s urin g c l os e mon itorin g a n d timel y a n d effec tive res pon s e to a n y probl em. I n a n effort to ev a l ua te th e performa n c e of th e s h ip’s en ergy effic ien c y mea s ures , we devel oped th e c orres pon din g EED I (En ergy Effic ien c y D es ign I n dex ) in dex for a l l th e c ompa n y’s ves s el s rega rdl es s of th e yea r of th eir c on s truc tion (c orres pon din g to th e EV D I in dex devel oped by C a rbon Wa r R oom a n d R igh tS h ip). T h e a bove in dic a tor wa s th en c a l c ul a ted a fter optimiz a tion wa s c ompl eted on ea c h s h ip, a n d its reduc tion c oeffic ien t wa s determin ed, wh ic h refl ec ts th e l evel of effic ien c y in c rea s e c ompa red to th a t of th e origin a l des ign . I t is n oteworth y th a t a fter in ves tin g $ 87 mil l ion , a n EED I improvemen t of over 20% on over 60% of th e fl eet wa s a c h ieved. Wh il e c on s iderin g th e C O 2 footprin t for four dis tin c tive c a rrier c a pa c ity c a tegories of D a n a os fl eet ra n gin g from 6 , 5 0 0 to 13, 000 T EUs th e s peed reduc tion a n d th e improvemen ts a ppl ied on ea c h ves s el res ul ted in a n over 50% improvemen t in th e EEOI c ompa red with th eoretic a l v a l ues ba s is on in itia l ves s el des ign for s pec ific route.

Ev i P o liti, R & D M a n a ger

71


DANAOS SHIPPING CO. LTD

REGULATORY UPDATE N ow a da y s, e nv iro nme nta l s u s tainability is bec omin g a ma j or c on c ern in th e s h ippin g in dus try, a s th e i n c rea si n g e nv iro nme ntal re g u latio ns a re h a v in g a s ign ific a n t impa c t on s h ippin g dyn a mic s . D urin g 2 0 1 9 t he s h ip p ing ind u s tr y w a s co u ntin g down to th e 1s t of Ja n ua ry 2 0 2 0 , for th e impl emen ta tion o f t h e n ew limit to 0 . 5 % o n f u e l o il s u lp h ur of s h ips tra din g outs ide S ul ph ur Emis s ion C on trol A rea s ( E C As ) , w ith be ne f its f o r th e e nv iro nme nt a n d h uma n h ea l th . A s of M a rc h 2020, th e c a rria ge of n on c o m pl i a n t f u e l f o r co mb u s tio n p u rp o s e s , for propul s ion or opera tion on boa rd s h ips , wil l be proh ibited, u n l ess a sh ip is f itte d w ith a s cru bber . Th e time h a s c ome for S h ipown ers to dec ide, from a pl eth ora o f o pi n i o n s , o n th e mo s t ap p ro p riate meth od for s h ips ’ c ompl ia n c e, in c l udin g l ow s ul ph ur fuel s a n d a l t er n a t i ve f u e ls o r alter native ar ra ng e men ts s uc h a s a n ex h a us t ga s c l ea n in g s ys tem (a l s o k n own a s s c ru b b er ), w h ile re maining co mmercially s us ta in a bl e in th e l on g term. Th e t o t a l nu mb er o f s h ip s w ith th e e x h a us t ga s c l ea n in g s ys tems , eith er in s ta l l ed or on order is a ppro xi m a te ly 4 , 0 0 0 a s o f e ar ly 2 0 2 0 a c c ordin g to l a tes t a n a l ys is (ref. D NV GL), wh ic h v a l ida tes t h e Sc ru b b er - p re d icte d f ig u re s f ro m a na l ys ts , s in c e 4, 000 wa s th e figure th a t Ex h a us t Ga s C l ea n in g S y s te ms A s s o cia t ion (EGC S A ) predic ted in 2019 th a t woul d be in s ta l l ed a s T he ye a r of o f b e g inning o f 2 02 0 , wh il e ba c k in 2 0 1 6 th e C E D el ft h a d predic ted in th e 2019 bro u g h t O f f icial F u e l A v ail a bil ity R eport th a t wh en th e I M O 2020 gl oba l 0 . 5% s ul fur s i gni fi c a n t cap s h o u ld co me i n to forc e in 2 0 2 0 , s ome 3, 800 ves s el s woul d be opera tin g m i le s to nes re l a t e d w ith s cru bbers . w i th the EU M R V a nd I MO D C S A limitation of the scrubber option is the implementation of strict local regulations re qu i re m en ts th at re s trict o r co mpl etel y proh ibit th e dis c h a rge of wa s h wa ter from open - l oop u nd er MA R P OL s cru b bers o r p ro h ibit th e us e of s c rubbers . On th e oth er s ide, durin g 2019 th e A nne x V I a nti- s cru b ber movemen t a ppea rs to be fa din g, a c c ordin g to th e a n n oun c emen t fro m severa l P o r t A u th o ritie s a ro u nd th e worl d, in dic a tin g th ey h a ve n o in ten tion of ba n n in g th e us e o f o pen -l o o p s cru b bers in th e ir w aters s i n c e up to n ow th ere is n o c ompel l in g res ea rc h th a t h a s c ome t o l i ght su g g e s ting th e y s h o u ld . M o re over, rec en t C E D el ft s tudy s h owed th a t open - l oop s c rubbers ha ve a m i nima l e f f e ct o f s e aw a ter qu a lity in port a n d wil l be pres en ted to I M O for th in k in g on s c rubber po l l u t i o n and f u tu re w o rk a t e v a lu a tio n an d h a rmon iz a tion of rul es a n d guida n c e on th e dis c h a rge of w a shw a t er f ro m E G C S into th e aqu atic e nv iron men t, in c l udin g c on dition s a n d a rea s . T h e c ompl ia n t fuel us ed a fter 1s t Ja n ua ry 2 0 2 0 to meet th e L a st but n o t least, 0. 5 % gl oba l s ul ph ur c a p c oul d be clima te ch an ge eith er res idua l or dis til l a te fuel remain s th e driv in g oil . Bl en ded gra des of both 0. 5 % fo rce beh in d en ergy S ul ph ur- ma x res idua l fuel oil a n d efficien cy regulatio n s 0. 1 % S ul ph ur- ma x dis til l a te a re to improve th e ex pec ted to be th e predomin a n t en v iro n men ta l c ompl ia n t produc ts th a t wil l be perfo rma n ce an d in itia l l y a v a il a bl e. However, a n reduce th e carbo n importa n t is s ue for th e s h ips is fo o tprin t th a t th e q ua l ity, a v a il a bil ity a n d q ua n tity of th es e differen t types of fuel were un k n own with in 2019, a n d immedia tel y a fter 1 s tJ a n ua ry 2020 th es e a re l i k el y t o va r y co ns id era b ly be tw e e n ind ividua l ports . S h ipown ers h a ve to en s ure th a t I S O 8217:2017 i s spec i fi ed a s th e re qu ire d s ta nd a rd w h e n orderin g 0 . 5% s ul ph ur fuel s for us e a fter th e 1s t of Ja n ua ry 2020.

72


ENVIRONMENTAL REPORT 2019

Th e y ea r of 2 0 1 9 bro u g h t s ig nif ica nt mil es ton es rel a ted with th e EU M R V a n d I M O D C S req uiremen ts u n der MAR P O L A nne x V I . F o r s h ip s s u bje c t to EU M R V regul a tion , th e firs t yea r of mon itorin g en ded i n 2 0 1 8 a n d th e f irs t re p o r ting is tak ing pl a c e in ea rl y 2019. T h e c ol l ec ted mon itorin g reports were s u b m i t t ed f o r verif icatio n and af ter s u cces s ful verific a tion , emis s ion reports were s ubmitted direc tl y t o TH E TI S- M R V , w h ich is o p era te d by th e Europea n M a ritime S a fety A gen c y (EM S A ). F or I M O D C S , w hi c h a ppl ie s to all s h ip s o f 5 , 0 0 0 g ro s s ton n a ge a n d a bove, 2019 is th e firs t mon itorin g period. I n o rder t o c omp ly w ith th e I M O D C S re qu iremen ts , ea c h s h ip is req uired to h a ve on boa rd S EEM P Pa rt I I , des c ri b i ng th e me th o d o lo g y th at w ill b e us ed for th e da ta c ol l ec tion a n d th e proc es s es th a t wil l be u s ed t o rep o r t th e d ata to th e s h ip ’ s A d min is tra tion . On c e th e verified da ta wil l be reported, it wil l be t ra n sfer red to th e I M O S h ip F u e l O il C o ns umption D a ta ba s e (GI S I S ), wh ere it wil l be k ept a n on ymiz ed, i n t he vi ew o f e nabling th e I M O to e v a lu a te th e n eed for furth er tec h n ic a l a n d opera tion a l mea s ures fo r en h a n cing th e e nerg y e f f icie ncy o f intern a tion a l s h ippin g. L a s t b u t n o t le as t, climate ch ang e re ma i n s th e driv in g forc e beh in d en ergy effic ien c y regul a tion s to i m prove t h e e nv iro nme ntal p erf o r mance a n d reduc e th e c a rbon footprin t, pa v in g th e wa y for c l ea n er s hi ppi n g o p era tio ns g lo b a lly . T h e S h ip p ing in dus try, is pus h ed to devel op c l ea n er a n d en ergy effic ien t vess el s , w h ile re s e a rch o n a lter na tive f uel is c on s ta n tl y in c rea s in g a n d c on s idera bl e in ves tmen t is m a de i n t h e d e ve lo p me nt o f mo re e nerg y- effic ien t en gin es a n d l ow- c a rbon fuel s for s h ips .

73


OUR PROJ


O N L IN E D AT A A C Q U I S I T I ON & P RO CES S S YS T E M W AVES RET RO F IT S & OP T I M I Z A T I ON S W AT ER BAL L A S T T R E A T M E N T M RV & IM O DC S E M I S S I ON S REP O RT IN G

ECTS EXH AU S T GA S C L E A N I N G S Y S T EM S IM O 2 0 2 0 : F U E L S L O W F RICT I ON A N T I F OU L I N G P AIN T S H AZ ARD O U S M A T E R I A L S


DANAOS SHIPPING CO. LTD

ONLINE DATA ACQUISITION & PROCESS SYSTEM V ESSELS E NR OL L E D DUR ING 2019 I n 2 0 1 9 , th e “ O n line ” d a ta acqu is ition s y s t em w a s ins talle d o n a no th er ve s s e l , w hi c h w a s a ne w acqu is tio n f o r D anao s , i n c rea si n g th e nu mb er o f ve s s e ls th a t a re m o n i t o red th ro u g h th e o nline s y s te m to 3 0 . The sy s te m w as ins ta lle d o n N ove mber 2019. On-line reefer monitoring is available Zim Luanda

4,253 TEU

CMA CGM 6500s

5 x 6,500 TEU

8500s

2 x 8,468 TEU

CMA CGM 8500s

5 x 8,530 TEU

9600s

2 x 9,580 TEU

10100s

3 x 10,100 TEU

Hyundai 13100s

3 x 13,100 TEU

MSC Zebra

2,500 TEU

Dimitra C /Performance

2 x 6,400 TEU

Catherine C / Leo C

2 x 6,200 TEU

Genoa

5,500 TEU

Colombo / Singapore

2 x 3,314 TEU

Belita

8,533 TEU fo r 1 8 D anao s ve s s e ls . T h e ve s s e ls ’ a c t u a l power e f f icie ncy is ca lcu la te d by m o n i t o ri n g th e lo a d o f th e a ctu a l re e f ers . Reefers t o ta l lo a d is e ith er f e tch e d f ro m reefer pa ne ls o r ca lcu la te d as th e to ta l gen era t o r p ow er o u tp u t s u b tra cting p ow er o f a l l o t h er co ns u mers in cas e d ire ct re e f er pow er m ea s u re me nt is no t av ailable . T he a b ove raw inp u t co mb ine d w ith a nu mb er o f o t h er d ata p ro ce s s e d th ro u g h W A V E S’ a l go ri t h m s p rov id e a re liable b a s e f or a ss ess i n g th e e f f e ctive ne s s o f th e e nergy m a n a gem e nt s y s te m o nbo a rd , e ns u re o pt i m u m e nerg y u s e and minimiz ation o f en ergy lo s s e s w h ile als o trig g er the i m pl em en t a tio n o f co r re ctive a ctio ns a nd a dj u s t m en ts w h ere ne e d e d .

8500s 8100s9200s

13100s

Online Reefer Monitoring Total 18 vessels

Catherine C/Leo C

10100s MSC Zebra

76


ENVIRONMENTAL REPORT 2019

6500s The o n -l i ne b u nk ering o p tio n w h ich w as fi rst i m ple me nte d o n C M A C G M R a b e la i s h a s b een s u cce s s f u lly a p p lie d o nb o a rd al l h er si st er ve s s e ls . T a nk s s ig na ls h ave a ls o b een c o l l e cte d f ro m E x p re s s B er lin a nd st o ra ge t a nk s ig na ls als o f ro m D imitra C . Fi n a l l y t h e alar m mo nito ring o p tio n i s c u r ren t l y ap p lie d to tw e nty o ne ve s s e ls. Si gn i fi c a n t imp rove me nt h as b e e n ma d e i n t h e a l a rms re ce ive d f ro m 6 , 5 0 0 s T EU seri es , a nd w e are co ntinu o u s ly w o rk ing o n fu r t her imp rove me nt a nd s tabiliz ation o f a l a r m s re ce ive d f ro m all ve s s e ls. Ac c o rdi n g to o u r s ta tis tics lo g s w h ich are u pda t ed o n a re g u lar b a s is , th e s y s te m’s st a b i l i t y h as be e n f u r th er imp roved c o m pa red w ith th e p re v io u s y e a r . T he da t a l o ss d u e to e qu ip me nt f a ilu re , o n- line sy s t em h a rd w a re f ailu re o r co mmu nication i s s u es b et w e e n th e s ervers , f o r th e s u m of ves s el s a nd th e to tal nu mber o f p a rame ters m o n i t o red w ith in 2 0 1 9 is b e low o u r targ et l i m i t o f 2 %.

Online Bunkering Total 7 vsls

Express Berlin

Dimitra C

8500s 81009200s

13100s

Alarms Monitoring Total *21 vsls

10100s

O n l i n e s y s te m s tatu s :

6500s Zim Luanda

6500s

Colompo/ Singapore

Belita

Online Status

10100s

13100s

8500s

Genoa

30* vsls

81009200s

MSC Zebra

Catherine C /Leo C

Dimitra C/Performance

Zim Luanda

*T h e 2 ba reboa ts n ot in c l uded

77


DANAOS SHIPPING CO. LTD

WAVES 2019 w a s a ver y ch a lle ng in g y ea r w i t h ma in f ocus t h e u p c o m i n g I M O 2020 . A ft er t h e f irs t s ucces s fu l s c ru b b er ins ta lla tio n o n L eo C , w ith in A p ri l 2 0 1 9 , D a na os h a s i n c o rp o ra t ed s crub b er m o n i t o ri n g i n t o W a ve s s ys t em .

M / V L eo C , a c o nt a i ners h i p o f 6 , 4 2 2 T E U , d e p a r t i ng t h e p o r t o f H a m b u rg

SC RU BB E R MONITOR ING c ompl ia n c e” . T h e “ S c rubber s ta te” ba r in dic a tes th e opera tion a l s ta tus of th e s c rubber a n d ves s el (a t s ea , a t port, work in g ok or n ot). R el ev a n t emis s ion s a n d wa s h wa ter l imits h a ve been in s erted in order for a n y v iol a tion to be ea s il y iden tified.

Th e s c ru b b er mo nito ring h a s be e n inclu d e d i n t h e Wa ve s interactive ma p . R e g u latio n s c o m pl i a n ce , o p eratio n d e ta ils , te ch nica l det a i l s a n d a la r m lis t a re av ailable f o r the u s er t o c h e ck a nd mo nito r . B e low is th e m a i n sc re e n af ter e ntering th e s cru b ber m o n i t o ri n g o p tio n a nd is th e “ R e g u lation

Th e m a p on th e le f t s h ow s th e ve s s e l’ s route for th e ex a min ed period. T h ere is a l s o a n ote a bout th e po r t s w here th e o p eratio n o f o p e n lo o p sc rubbers is proh ibited.

78


ENVIRONMENTAL REPORT 2019

Opera tion a l deta il s in c l ude da ta a bout th e M E a n d D G l oa ds , S peed, S G l oa d (if a ppl ic a bl e), in order to en s ure th a t th e s c rubber opera tes with in its des ign l imits . M oreover, in c a s e D Gs a re opera tin g pa rtia l l y in s c rubber a n d th ere is a l s o l oa d a t bypa s s , th en s a me is depic ted in th is ta b. S ea wa ter fl ow, s c rubber c on s umed power a n d s ul ph ur of th e fuel us ed is a l s o in c l uded. M ore tec h n ic a l da ta c on c ern in g th e s c rubber opera tion is a l s o rec eived a n d dis pl a yed, s uc h a s th e turbidity fil ter in l et pres s ure, s ea wa ter s uppl y pres s ure (upper a n d l ower), ex h a us t ga s pres s ure before & a c ros s s c rubber a n d s c rubber in l et pres s ure. T h e deta il ed brea k down for th es e pa ra meters wil l prov ide a more deta il ed in s igh t in th e a c tua l c on dition of th e s c rubber.

E l ec t ri c a l d e ta ils s h ow in d e tail o f ea c h w ork ing s e a w ater p u mp t h e c a l c u la te d lo a d p er re e f er c o r res po n d ing limit acco rd ing vess el ’ s c h ar ter p a r ty .

th e lo a d and also w ith its to e a ch

Th e l a st t ab, “ A la r m lis t” inclu d e s s ig na ls a b o u t t h e a ctiv atio n o f s o me critical a l a r m s fo r th e s cru b ber o p eratio n th at i n di c a t e serio u s d a mag e o r ma y re s u lt t o a n em erge ncy s h u t d ow n o f th e s y s te m.

DCS I n a ddi t i o n, an imp o r ta nt mile s to ne in 2 019, is th e devel opmen t of I M O D C S reportin g in th e Wa ves Fl eet P erfo r mance p latf o r m. T h e I M O D C S routin e h a s been in c orpora ted in th e M R V routin e s in c e th ey a re b o t h u nd er th e cu r re nt e mis s io ns mon itorin g s c h eme.

79


DANAOS SHIPPING CO. LTD

WAVES is fully integrated in the Danaos management system, providing personalized ro l e-s pec i f ic d as h b o a rd s and ma ritime b u si n ess o p eratio nal inte llig e nce , cre atin g a t ru e c o mp e titive ad v antag e in s hip m a n a gem e nt. T h e inco rp o ra te d a lg o rith m s a n d vi s u a l iz atio n to o ls tra ns f o r m d a ta into u s efu l i n f o r ma tio n, a s s is ting co mp any ’s em pl o y ees w ith th e d e cis io n- ma k i n g pro c ess , w h ile e limina ting th e re a ction t i m e. Wi t hin 2 0 1 9 D a na o s h a s manag e d to s t a n da rdi z e th e C h ar ter P ar ty f o r ma t, an d l a t es t c ha rter p ar tie s f o r a ll ve s s e ls h a ve b een i n ser te d in W ave s , g o ing o ne s t ep fo r w a rd t o a f u lly d ig itiz e d co mp any a nd in o rder fo r s a me to be a v a ila b le ins ta ntly .

A n oth er ma j or routin e des ign ed a n d devel oped in l a te 2019 – ea rl y 2020, is th e EED I , EEXI & A ER routin e, in order to c h ec k wh ere our ves s el s s ta n d c ompa red to th e s tric ter upc omin g EED I regul a tion s a n d Pos eidon Prin c ipl es A ER l imits . I n a n effort to ev a l ua te th e performa n c e of th e s h ip’s en ergy effic ien c y mea s ures , D a n a os h a s devel oped th e c orres pon din g EED I (En ergy Effic ien c y D es ign I n dex ) in dex for a l l th e c ompa n y’s ves s el s rega rdl es s of th e yea r of th eir c on s truc tion (c orres pon din g to th e EV D I in dex devel oped by C a rbon Wa r R oom a n d R igh tS h ip).

Th e a b ove ind ica to r w as th e n ca lcu la te d a fter optimiz a tion wa s c ompl eted on ea c h s h ip, a n d its redu c t i o n c o e f f icie nt w as d e ter mine d , w h ic h refl ec ts th e l evel of effic ien c y in c rea s e c ompa red to th a t o f t he o ri g ina l d e s ig n. V a rio u s co mp lia nc e ph a s es h a ve been s epa ra ted a l on g with th e v a rious EED I t h resho l ds tak ing into acco u nt th e re d u c tion fa c tors by I M O. A t ea c h ph a s e, th e n umber of c ompl ia n t vess el s a re s h ow n. I t is no te w o r th y th a t a fter in ves tin g $ 8 7 mil l ion , a n EED I improvemen t of over 2 0 % o n over 6 0 % o f th e f le e t w as ach ie ved, wh il e over 5 0 % of th e fl eet is in ph a s e 2 c ompl ia n c e, a s s how n i n b e low g rap h .

80


ENVIRONMENTAL REPORT 2019

Th e m a i n f ind ing is th at th e s e co mp liance ra tes in c rea s ed s ign ific a n tl y a fter th e in ves tmen ts . I n th e fo l l ow i n g g ra p h , w e s h ow h ow th e C O 2 f o otprin t for four dis tin c tive c a rrier c a pa c ity c a tegories ra n gin g fro m 6 ,5 0 0 to 1 3 , 0 0 0 T E U s . T h e blu e col umn depic ts th eoretic a l EEOI ba s is on in itia l ves s el des ign a n d c o n s u mp tio n o n a s p e cif ic ro u te . T h e reduc tion in th e in dex is a bove 50% for a l l s h ip c a tegories a s a res u l t o f th e s p e e d re d u ctio n a nd th e improvemen ts a ppl ied on ea c h ves s el .

81


DANAOS SHIPPING CO. LTD

L a s t b u t n o t le as t, D anao s h a s d e ve lo ped a tool with in EED I routin e in order to predic t th e EED I redu c t i o n i f a s p e cif ic inve s tme nt is a p p lied.

Un der t he s ame co nte x t and in o rd er to ben c h ma rk our ves s el s in th e Pos eidon Prin c ipl es , A ER (A n n ua l E ffi c i en c y R atio ) h a s be e n inco rp o rate d in Wa ves .

82


ENVIRONMENTAL REPORT 2019

83


DANAOS SHIPPING CO. LTD

B el ow a re W A V E S ’ majo r mile s to ne s p re s en ted for th e yea r 2019: Jan u a r y 2 0 1 9 : H u l l c l ea ning time line a dded u n der P erf o r ma nce m o to ring me nu

J un e 2019: S ta nd a rd T/ C D es c ription a p p lication in c orpora ted

Fe b r u a r y 2 0 1 9 : M R V R o u tine tu ning s as p er D N V G L re qu ire me nts in o rd er to ch e ck a u to matically all M R V re la te d f ile s f o r p o s s ible w ro ng e ntrie s

December 2019: I M O- D C S fea tured in M R V routin e

August 2019: S c rubber motorin g fea tured on M a p for S c rubber fitted ves s el s

December 2019J an ua ry 2020: EED I , EEXI routin es


ENVIRONMENTAL REPORT 2019

Fo r 2 0 1 9 , D A N A O S f o cu s e s o n tu r ning its proc es s es ful l y digitiz ed v ia its s ta te- of- th e- a rt WA V ES a rc hi t ec t ure , and be a b le to be co me a trus ted l in k in th e c h a in of n ew era of opera tion s . Bel ow is a n i l l u st ra t i o n o f th e W A V E S ’ ne x t s te p s f o r th e yea r 2020.

C omp a n y P ro ce s s e s Digitization

C o mmerci a l E nv i ro n me n t a l re l a t e d rou t i n e (E E DI, E EX I , A E R e tc)

C o ntro l Fo r m D e s i g n Update Tec h C o ntro l F o r m desi gn t o b e intera ctive

Co mpa n y KP I s I n tegra ted s ys tem wh ere a l l dpts wil l rec ord th eir K PI s a n d report c a n be a c c es s ed a n ytime, a n ywh ere

L ubrica n ts


DANAOS SHIPPING CO. LTD

RETROFITS & OPTIMIZATIONS When t h e c o mp any ’ s R &D d e p ar tme nt w a s fi rs t es t a blis h e d , a s a re s p o ns e to the i n c rea si n g ma rk e t ne e d s a nd , o f co u rs e , o u r c u s t omers ’ ne e d f o r e f f icie nt an d en vi ro n m e nta lly s o u nd ve s s e l o p eratio n , w e pl a c ed o u r e mp h as is o n th e s tu d y of en ergy ef f icie ncy o p timiz a tio n me th o ds fo r o u r ve s s e ls . T h is inclu d e s o p timiz in g t h e ves s el s ’ d e s ig n, th e ir o p erating p ro f ile, a s w el l a s th e w ay th e ir p erf o r ma nce is m o n i t o red . I n th is co nte x t, w e h a ve s tu d ied a n d eva l u a te d 3 8 me th o d s o f o p timiz ing t h e en ergy e f f icie ncy o f ve s s e ls , w h ich we ha ve c a t eg o riz e d a cco rd ing to th e s y s tem t h a t w a s o p timiz e d : p ro p u ls io n s y s tem ( m a i n en g ine - p ro p e ller ) , f u e l, o n b o a rd en ergy manag e me nt, re d u ctio n o f h ul l ro u ghn es s , interve ntio n o n th e h u ll d e s ig n t o redu c e f rictio n o r rip p le re s is ta nce , or i m provem e nt o f ve s s e l o p era tio n. H a v in g s t u di ed a ll th e s e me a s u re s , w e ar rive d a t a c o n c l u sio n a s to w h e th er th e y w o u ld be w o r t h i m p le me nting o n co nta iners h ip s ,

by ta k in g in to a c c oun t ea c h s h ip’s h ul l l in es , eq uipmen t, a n d s pec ia l fea tures a n d a s s es s in g its dyn a mic s th rough C F D s s tudies a n d model tes ts in ex perimen ta l ta n k s . With in 2019, a n optimiz ed bow h a s been in s ta l l ed on C M A C GM A ttil a , C M A C GM T a n c redi, C M A C GM Bia n c a , C M A C GM S a ms on a n d C M A C GM M el is a n de (ea rl y 2 0 2 0 ). M oreover, th e bow h a s been optimiz ed a n d in s ta l l ed on th e Pus a n C , Le Ha v re a n d a l l 13, 100 T EU ves s el s , a n d a l l of wh ic h h a ve un dergon e s c rubber modific a tion a s wel l , wh ic h for th e Hyun da i Hon our a n d Pus a n C , were c ompl eted with in Ja n ua ry a n d M a rc h 2 0 2 0 res pec tivel y. A s per D a n a os ’ s ta n da rd pol ic y, s peed tes ts a re c a rried out, wh en th e des ired c on dition s a re met a fter ves s el s ’ depa rture from th e s h ipya rd, in order to c rea te th eir n ew referen c e c on dition a n d s tudy th e bul bous bow effec t.

Da n a o s’ ma jo r o p timiz atio ns a re s u mmariz ed bel ow:

2016

81 0 0 s BB O ptimiz a tio n 81 0 0 s n ew K a p pel Pro p el l er & PBC F 81 0 0 s E n gin e Dera tin g

2017

10 1 0 0 s BB O p timiz a tio n 10 1 0 0 s Low Fric tio n Pa in t a p pl ic a tio n 43 0 0 s S ho r ten in g

2018

65 0 0 s BB O ptimiz a tio n

2019Q1 2020

85 0 0 s J ia n gn a n , 9 6 0 0 s , 1 3 1 0 0 s BB O ptimiz a tio n 65 0 0 s , 8 1 0 0 s , 9 6 0 0 s , 1 3 1 0 0 s S c ru bber in s ta l l a tio n

86


ENVIRONMENTAL REPORT 2019

Du ri n g t h e p re v io u s y e a rs , D a na os c o n du c t ed v a rio u s te ch nica l u p g ra d e s , to a l l ow o u r ve s s e ls to b e co me mo re f le x ibl e o pera t i o n a lly and co mmercia lly attra ctive , w i t h a k ey d river b e ing to ad d re s s o ur C h a r t erers ’ k e y ne e d s . Th e m a i n sco p e , w as to th o ro u g h ly e x a mine t h e po s s i b ility o f a p p ly ing te ch nical d e s ign i m provem e nts o n all co mp a ny ve s s e ls, b a s ed o n th e cu r re nt ma rk e t re qu ire me nt s a n d t ren ds . I n th e above co nte x t, d ra ft i n c rea se, M / E S F O C O p timiz atio n, a s w el l a s m o di fi ca tio ns ne e d e d f o r co mp liance w i t h t he n e w P a na ma C a na l a nd A M SA ru l es w ere car rie d o u t. T h e mo d if ica tio ns c o m pl et ed in o u r f le e t d u ring th e p re v io us y ea r a re s u mma riz e d be low :

Draft increase

8 x 2 2 0 0 s in c rea s ed by 0 . 2 8 m (fin a l 1 0 . 7 8 m)

Panama Canal Modification

1 4 1 2

M/E SFOC Optimization

2 x 8500s

AMSA Modification

3 x 6500s

87

x x x x

5500s 6500s 8500s 9600s


DANAOS SHIPPING CO. LTD

WATER BALLAST TREATMENT Aft er t h e f irs t s u cce s s f u l ins talla tio n o nboa rd th e Ex pres s Bl a c k S ea (D ec ember 2018) th e bel ow i n s t a l l a t i ons to o k p lace w ith in 2 0 1 9 :

May 2019

Suez Canal

June 2019

July 2019

August 2019

October 2019

JanuaryFebruary 2020

2020-

CMA CGM Attila & Bianca

CMA CGM Tancredi

Performance

CMA CGM Samson

Catherine C, Dimitra C, Hyundai Honour (BB), America

minimum 6 scheduled installations

Th e i n st a l l a tio n o nbo a rd th e S u e z C a na l wa s c ompl eted a t s ea , wh il e for th e res t of th e ves s el s th e i n s t a l l a t i on w as co mp le te d d u ring th e ir d oc k in g. Wi t hi n 2 0 19 , D anao s h a s a ls o p ro ce e d e d with BWT s a mpl in g in th e c on tex t of V GP req uiremen ts . T h e vess el s t h a t h a ve co mp le te d th e s amp ling a re Ex pres s Bl a c k S ea , C M A C GM A ttil a , C M A C GM Bia n c a & Su ez C a n a l. A ll re s u lts w ere s a tis f a cto r y.

88


ENVIRONMENTAL REPORT 2019

Mo reover , s a mp ling d u ring co mmis s io ning wa s performed on th e A meric a with in F ebrua ry 2020 un der I MO gu i deline s ( ind icative analy s is ) , as re q uired by th e rec en t c irc ul a r of C yprus F l a g A dmin is tra tion . Si n c e b y th e e nd o f 2 0 1 9 D anao s h a d in tota l 7 s ys tems in opera tion , feedba c k h a s been s h a red b et w een t h e T e ch nical and R & D d e p ar tmen ts . T h e is s ues th a t were dis c us s ed a n d iden tified durin g i n s t a l l a t i ons are a s f o llow s :

UV lamps sustainability

Ballast stripping eductor requirements

Sampling point installation

Equipment supporting

89


DANAOS SHIPPING CO. LTD

MRV & IMO DCS EMISSIONS REPORTING MRV data submission has been successfully c o m pl et ed w ith in 2 0 1 9 f o r th e 1 s t repo r t i n g y e ar ( 2 0 1 8 ) a nd all re qu ire d do c u m en t a tio n h as b e e n p lace d o n b o a rd, w el l i n a dv a nce p rio r to th e d e a d line s s e t b y t he E U. T h e s a me p lan and time line , is fo l l ow ed a ls o f o r th e d a ta co ncer ning the 2 n d MRV re p o r ting y e a r , 2 0 1 9 . M o re over, w i t hi n 2 0 19 s o me mino r f ine - tu ning h as b een m a de to th e re le v a nt W ave s ro u tine, i n o rder t o time ly id e ntif y s o me w ro n g en t ri es i n th e ve s s e ls te le g ra ms . T h e be low gra ph i l l u s tra te s th e s te p s and p ro ce ss fo l l ow ed w ith in 2 0 1 9 :

MRV reporting files from Waves submitted to DNVGL

January 2019

After DNVGL checking, wrong entries corrected and necessary tunings carried out in Waves for auto check reporting files

February 2019

Verified XML files and Verification reports received from DNVGL & uploaded to Thetis

March 2019

MRV DoC issued from Thetis and filed o/b

April 2019

90


ENVIRONMENTAL REPORT 2019

2 0 1 9 i s a ls o th e f irs t re p o r ting y e ar f or t h e I MO DC S co ns u mp tio n. D a ta h a ve be e n c o l l ec t ed f o r a ll ve s s e ls and s u b mitte d t o DN V G L ( verif ier ) w ith in J a nu a r y 2 0 2 0. C o m m en t s h a ve b e e n rais e d f ro m th e veri fi er a nd ack now le d g e d by D a na os w i t hi n Fe b ru a r y 2 0 2 0 . T ow ard s the en d o f Ma rch 2 0 2 0 , a ll co mme nts w ere rec t i fi ed and clo s e d . T h e re le v a nt S o C , h a s b een i s s u e d f ro m D N V G L o r F lag w h ere a ppl i c a b l e a nd D o C w ill b e o nb o a rd o ur vess el s , we ll in a d v a nce p rio r th e d e ad line of 01/06/2020.

IMO DCS & MRV data submission to DNVGL

January

MRV verified emission reports submission to Thetis

April

2020

91

IMO DCS Statement of Compliance o/b & Report data to IMO GISIS

June

MRV DoC o/b

July


DANAOS SHIPPING CO. LTD

EXHAUST GAS CLEANING SYSTEMS Wi t h the I nter na tio na l M a ritime O rga n i z a t i o n ( I M O ) ad o p tio n o f 0 . 5 0 % gl o b a l s u lp h u r ca p f ro m 3 . 5 0 % o n the 1 s t J a n u a r y 2 0 2 0 g ive n as th e e f f e ctive da t e, 2 0 1 9 w as th e y e ar w h e n th e S h ip p ing i n du s t r y w e ig h e d th e mo s t ap p ro p riate o pt i o n s, fro m a w id e v arie ty o f o p inio n s provo k ed by th e g re a te s t re g u lato r y a nd o pera t i o n a l ch alle ng e , in o rd er to e ns u re c o m pl i a n c e and re ma in co mmercially s u s t a i n a b le , w h ile manag ing ris k s a h e ad o f t he n ew re g u latio ns ’ imp le me nta tio n. Th e l i m i t i n S u lp h u r E mis s io n C o ntro l A re as ( SE C A) u n d er M A R P O L , re ma ins u nch ang ed t o 0 . 1 0 % e f f e ctive s ince 1 J anu ar y 2 0 1 5.

Danaos R&D department, well ahead of the new global sulphur cap regulations, has studied the main streams for compliance to decide on the most appropriate approaches for operation in the view of the new IMO regulations.

S ome c oa s ta l s ta tes a n d ports h a ve impl emen ted l oc a l regul a tion s with more s trin gen t req uiremen ts th a t res tric t or c ompl etel y proh ibit th e dis c h a rge of wa s h wa ter from open - l oop s c rubbers or proh ibit th e us e of s c rubbers . On th e oth er h a n d, a c c ordin g to rec en t s tudies (ref. C E D el ft) open - l oop s c rubbers a ppea r to h a ve a min ima l effec t of s eawa ter q ua l ity in port. T h e reports wil l be pres en ted to I M O for future work a t ev a l ua tion a n d h a rmon iz a tion of rul es a n d guida n c e on th e dis c h a rge of wa s h wa ter from EGC S in to th e a q ua tic en v iron men t, in c l udin g c on dition s a n d a rea s . I n th e c on tex t of th e c on tin uous foc us on pos ition in g our fl eet, D a n a os R & D depa rtmen t, wel l a h ea d of th e n ew gl oba l s ul ph ur c a p regul a tion s , h a s s tudied durin g th e prev ious yea rs th e ma in s trea ms for c ompl ia n c e to dec ide on th e mos t a ppropria te a pproa c h es for opera tion in th e v iew of th e n ew I M O regul a tion s , wh ic h a re eith er to s witc h to a n a l tern a tive fuel or to in ves t in ex h a us t ga s c l ea n in g s ys tems for our s h ips a n d c on tin ue us in g h igh s ul ph ur fuel . T h e ex ten s ive s tudy c a rried out durin g th e prev ious yea rs on EGC S s ys tems a n d th eir opera tion , in c l udin g ris k a s s es s men t, in ves tiga ted a mon g oth ers v a rious c on tributin g fa c tors to a s uc c es s ful

A s o f M a rch 1 s t 2 0 2 0, th e car riag e o f no n co mp lia nt f u e l o il f or co mb u s tio n p u rp o s e s for p ro p u ls io n or o p eratio n o nbo a rd is ba nne d , u nle s s a ve s s e l is f itte d w ith a n E x h a u s t g a s cle aning s y s te m ( a ls o k now n as S cru b ber), e na b ling it to a ch ie ve a n e qu iv a le nt me th od o f co mp lia nce .

O pen -l o o p s cru b bers a d d s e aw ater w it h n a t u ra l l y e x is ting a lk a li to th e e x h a u st ga s , w hi c h tu r ns s u lp h u r o x id e s ( S O x ) t o su l ph ate s / s u lp h u ric acid . O p e n- lo op s c ru b b ers re tu r n w as h w a ter to th e s e a. T he di sc h a rged w a s h w ater mu s t me e t s tric t c ri t eri a , re la te d to p H, P A Hs ( P o ly cy cli c Aro m a t i c Hy d ro carbo ns ) , tu rb id ity an d n i t ra t es .

retrofit, s uc h a s c os t, s a fety/ opera tion , c ompl ex ity/ c on figura tion , a v a il a bil ity, a n d en a bl ed D a n a os to c on c l ude to th e s el ec tion of S T I K orea n ma k er a s a rel ia bl e pa rtn er for th e in s ta l l a tion of Open - l oop Ex h a us t ga s c l ea n in g s ys tems on boa rd 1 1 D a n a os ves s el s , s iz ed 6, 500, 8, 500, 9 , 6 0 0 a n d 13, 100 T EUs , durin g 2 0 1 9 a n d th e firs t q ua rters of 2 0 2 0 .

92


ENVIRONMENTAL REPORT 2019

93


DANAOS SHIPPING CO. LTD

The Open-loop multi-inlet inline scrubber units were custom designed and sized to suit the application of our vessels, according to th e opera tion a l c on dition s , th e expec t ed e x h a u s t g as f low and te mp era ture, a s wel l a s th e opera tion a l a n d m a c h i n er y co ns traints , w ith th e minimu m modific a tion s on th e fun n el s truc ture a n d w i t h o u t any ca rg o ca p acity lo s s w h a tsoever. D a n a os , a l wa ys bein g a pion eer, s u c c ess fu l ly co mp le te d w ith in o nly a few mon th s th e s c rubber in s ta l l a tion o n b o a rd t h e 1 s t “ p ilo t” 6 , 5 0 0 T E U co ntain er s h ip a t th e en d of Q 1 2019, with t h e res t o f th e ve s s e ls f o llow ing by imp le m en tin g importa n t des ign upgra des a n d i m provem e nts tak e n into co ns id era tio n f rom th e “ pil ot” ves s el .

Plan ApprovalMaker

Design RetrofitApproval

RetrofitClass Approval

Scheme B - CFD Approval

The Open-loop multi-inlet inline scrubber units were custom designed and sized to suit the application of our vessels

Installation - trials

The various tasks of the very demanding and challenging retrofit projects included among others the plan approval with the maker to review the system’s drawings, the retrofit approval with vessels’ classification societies and clarification of certification procedure, the detailed review and approval of design Offices’ drawings and finally the cooperation with the shipyards in Korea and China, in order to ensure all the deliverables are timely received and all clarifications required for the proper installation/ fabrication are provided.

94


ENVIRONMENTAL REPORT 2019

The issues experienced during the scrubber retrofit of the “pilot” vessel consisted a valuable feedback that Danaos gained and were carefully reviewed in order to be properly implemented in the following projects in terms of the necessary upgrades in design as well as the necessary developments & improvements. More specifically, the most significant upgrades implemented were related to pipe material specification, pipe size modification, improved system designs for degasification, update of CEMS sensor to withstand humidity, added dilution line to increase load in VGP areas, as well as upgrades in system’s automation. Upon completion of scrubber systems’ installation onboard Danaos vessels, the scrubber data are collected online and sent to the Head Office. The Scrubber Monitoring is a feature that is custom designed in our Waves data analytics platform and provides the user with good insight on the scrubber operational data almost in real time, while at the same time one is able to easily confirm compliance with regulatory requirements for all parameters.

95


DANAOS SHIPPING CO. LTD

IMO 2020: FUELS

c ra c k ed res idues , h ydroc ra c k er bottoms , s tra igh t run dis til l a tes , th erma l l y run dis til l a tes , etc . D epen din g on th e produc tion meth od th a t is a res ul t of th e ma n ufa c turin g route a n d bl en din g c ompon en t a v a il a bil ity, V S LF O c a n be predomin a n tl y a roma tic or pa ra ffin ic in n a ture a n d h en c e h a v in g properties ma in l y of on e or th e oth er. T h es e properties a ffec t th e s ta bil ity a n d c ompa tibil ity, h a ve impa c t on th e ign ition properties a n d differen tia te on th e pour poin t v a l ue.

Th e Sh i ppi ng ind u s tr y to d a te , h ad re lie d o n s pec i fic re s id u a l and d is tilla te f u e ls s u c h a s H F O , M G O / M D O , a ll b a s e d on I SO 8 2 1 7 ma rine f u e l qu a lity s tand ard s. Movi n g for w ard to ne w R e g u latio ns a nd em i ss i o n a re a s , th e ma rk e t u rg e d th e m a ri n e i n d u s tr y to re ly a ls o o n ano th er ra n ge o f f u e ls ca lle d U L S F O w ith 0 . 1 %S perc en t a ge a nd w h ile re ach ing 1 s t J a nu a ry 2 0 2 0 , t hat g lo ba l s u lp h u r limit o n ma rin e f u e ls b e re d u ce d f ro m Sulphur became 3 . 5 % to 0 . 5 % , o ne an important mo re f u e l ty p e ca lle d factor for the V L S F O ca me u nd er industry and new re v ie w . methods had to be developed E nabling a s u cce s s f ul for increased tra ns itio n to 2 0 2 0, blending d e ma nds activities to meet incre as e d f o r b o th th e d e ta iled required sulfur p ro d u ct k now le d g e percentage in a lo ng w ith th e p ro p er fuel. h and ling ins tru ctio ns a n d t he o n - b o a rd o p eratio nal as p e cts w ere req u i red. I ntro d u cing V L S F O , re s u lte d in a w i der ra n g e o f f u e l f o r mu latio ns a cro s s t h e i n du s tr y . I nitially , th e co ntro lling pa ra m et ers a f ter b le nd ing o f d if f ere n t fu el s ha ve be e n th e v is co s ity a nd the den s i t y . L ater o n, s u lp h u r be ca me an i m po r t a n t f a cto r f o r th e ind u s tr y a nd ne w m et h o ds h ad to be d e ve lo p e d f o r incre a s e d b l en di n g activ itie s to me e t re qu ire d s u lf ur perc en t a ge . T h ere are s e veral V L S F O pro du c t i o n me th o d s f o r w h ich th e ve s s el o pera t o r h as no inf o r ma tio n a nd th e c o r rel a t i o n o f me th o d to f u e l’ s p ro p er tie s ha s n o t y e t be e n e s ta b lis h e d : S tra ig h t ru n resi d u e s , h y d ro cra ck e d re s id u e s , t h er m a l l y cra ck e d re s id u e s , cata ly tically

D a n a os es ta bl is h ed a proj ec t wh os e ma in purpos e wa s to furth er a s s es s th es e bl en ded fuel s a n d un ders ta n d h ow th ey s h oul d be trea ted by our on boa rd members from bun k erin g to burn in g. T h is effort wa s a c c ompl is h ed by a n a l yz in g a l l bun k ered V S LF O s a mpl es –a pprox . 130 s a mpl es in tota l - s in c e 2019 with s pec ific a ddition a l tes ts , dis c us s ed with th e a ppoin ted l a bora tory a n d th us ga in in g th e a dv a n ta ge of better fa mil ia riz a tion with th e produc t its el f. T h e ben efit th a t c a me a l on g with th is proj ec t, wa s th e a bil ity to c rea te s ta tis tic s for th e firs t mon th s of V LS F O bun k erin g in terms of c ol d fl ow properties , wa x forma tion , etc . th a t ex c eeds th e ta s k of I S O 8 2 1 7 s ta n da rds . A fterwa rds , rel ev a n t dec is ion s were ta k en on th e a ddition a l tes ts to be c on duc ted on ea c h V LS F O s a mpl e th a t s h a l l be fol l owed by a l l th e D a n a os F l eet.

96


ENVIRONMENTAL REPORT 2019

L O W F RIC TIO N A N T I F O U LIN G PA IN TS Th e Sh i ppi ng ind u s tr y is re co g niz e d as more en ergy efficie nt th an many f o r ms o f trans p ort, b u t t he i n cre a s ing re g u la tio ns o n e mis s ion s a n d i n c rea s ing f u e l p rice s , co ntinu e to d rive t h e n eed f o r v ia b le me a ns o f e nerg y s av in g a n d redu c ing o p era tio na l co s ts . O ne o f th e w a y s t o a c h ie ve th is , is th ro u g h th e u s e o f l ow fri c t i o n a n ti- f o u ling co a ting s , w h ich imp rove t h e en ergy e f f icie ncy o f s h ip s , b y re d u cin g hu l l ro u ghne s s a nd f rictio nal d ra g . L ow fri c t i on, a nti- f o u ling co ating th o u g h is a c o n fu si n g ter mino lo g y , mainly link e d to t h e h i ghes t ra te d P aint M a k ers ’ s ily l / co p per a c r y l a t e a nti- f o u ling co ating s , p rov idin g a l o n ger id ling p erio d . F u r th er mo re , l ow fri c t i o n paints a re s aid to co ntrib u te to t h e reduc tion of c a rbon footprin t. Da n a o s, b e ing in co o p eratio n w ith h er ma j or pa rtn ers , h a s in itia ted th e s tudy a n d bein g a pion eer, m oved t o th e ap p lica tio n o f low f rictio n A /F pa in ts s in c e 2017 a n d til l toda y h a s c ompl eted 11 proj ec ts , w hi l e 4 pro je cts a re o ng o ing . T h e g o al f o r th e forth c omin g yea rs is th e a ppl ic a tion of l ow- fric tion pa in ts t o t he en t ire f le e t th at is g o ing to b e d r y doc k ed.

97


DANAOS SHIPPING CO. LTD

H A ZA R DO U S M A TE RIA LS

I n tern a tion a l I n ven tory of Ha z a rdous M a teria l s . T h e proj ec t h a s been c a reful l y s et up to en a bl e a l l c on c ern ed pa rties to rea l iz e th a t it is h igh l y ben efic ia l to emba rk on th e n ew pa th of ta k in g c a re of ours el ves a n d our en v iron men t with out divergin g from th e goa l s of profit a n d progres s . T h e impa c t of EU regul a tion a n d HK C to h uma n s a n d th e en v iron men t is mea n in gful a n d s us ta in a bl e. T h us , D a n a os S h ippin g promotes a roa d to th e es ta bl is h men t of proper mea s uremen ts for th is ta s k , by is s uin g in tern a l proc edures , in formin g C rew & offic e pers on n el a c c ordin gl y a n d en s urin g th a t req uired a c tion s a re ta k en a t a l l s teps . D a n a os ’ n ew- buil din g ves s el s c a rried a Green - Pa s s port c ertific a te a n d/ or I HM S oC a t th e time of buil din g th a t wil l be rev iewed a n d re- a pproved in order to

Da n a o s, acting p ro a ctive ly , in o rd er t o c o m pl y w ith th e E U S h ip R e cy clin g Regu l a t i o n 1 2 5 7 / 2 0 1 3 and th e H o n g K o n g I n t er natio nal C o nve ntio n ( 2 0 0 9 ), ha s si n c e 2 0 1 7 , traine d its ow n Qu alit y C o n t ro l E ng ine ers , as H a z mat E x p er t s [ a pproved b y tw o C la s s if icatio n S o cie tie s: K R & DN V G L ] . This Danaos’ Quality was done, in order to Control Engineers properly and promptly have tested and monitor, the performed prepared Inventojobs, ranging from ries of Hazardous document review, to Materials for 61% an onboard Survey. of the entire Fleet, Danaos’ Quality Control whilst only 46% Engineers have tested of the Fleet fly EU/ and prepared Inventories EEA flags of Hazardous Materials for 61% of the entire Fleet, whilst only 46% of the Fleet fly EU/EEA flags. Ac c ord ing to th e cu r re nt ro u t e, how e ver , a no th er 1 0 % o f t he exi s ting F le e t is re qu ire d t o c a r r y a n a p p rove d I H M . A n a pproved I HM a re av ailable o n b o a rd ve s s e ls a lo ng w ith t h e St a t em e nt o f C o mp liance

c ompl y to ex is tin g R egul a tion s . F or th e ex is tin g s h ips , D a n a os h a s a c h ieved proper rec ords a n d ma in ten a n c e but is n ot l imited to doin g j us t th a t. We wil l c on tin ue c ol l a bora tin g with our s uppl iers (s tores , ma c h in eries , pa in ts , etc . ) for th e rec ordin g of pos s ibl e h a z a rdous ma teria l s a n d c ompl ia n c e with th e regul a tion s . Wh en it c omes to th e demol ition of s h ips , th e da n gerous pra c tic es a n d pol l ution a re a fa c t. C uttin g a pa rt big s teel s truc tures is a c ompl ex a n d h a z a rdous bus in es s , n ot to men tion th e ma c h in ery th a t a s h ip migh t be eq uipped with or th e pa in ts th a t ma y h a ve

98


SUSTAINABILITY REPORT 2019

b een a ppl ie d , a nd e ve n now a d ay s th e min imum prec a ution s a re ta k en . I t is wel l un ders tood th a t th e b ea c hi n g me th o d s d u ring d e mo litio n, mak e it diffic ul t to en s ure s a fety a n d properl y ma n a ge pol l uta n ts . N ever t h el e s s , p a r t o f h er ma na g e me nt of h a z a rdous wa s te, is th e s a fe rec yc l in g of our ves s el s a n d Da n a o s i s co mmitte d to th is tas k b y s e le c tin g rec yc l in g fa c il ities wh ic h embody s a fer pra c tic es .

99


OUR ENVIRON PERFORM


MENTAL ANCE We Developed Our Environmental Indexes As Monitoring Tools Of Our Fleet Environmental Performance And As A Means To Evaluate The Effectiveness Of Our Energy Efficiency Improvement Measures


DANAOS SHIPPING CO. LTD

DA N A OS FLEET EMIS S IONS O U R E MISSIO N S

We a dopted th e a bove a pproa c h , in order to us e th e s a me referen c e tool a s th a t of our c h a rterers , s o a s to be ful l y a l ign ed with th em, rega rdin g emis s ion s c a l c ul a tion s .

E ver y y ea r , w e calcu late th e e mis s io n s o f o u r en t ire F le e t, as p iring to b e f u ll y t ra n spa rent o n th e p a rame ters th a t can i n fl u en c e o u r e f f o r ts tow ard s a mo re en ergy ef f icie nt manag e me nt. W e u s e t h o s e c a l c u la tio ns a s ind icato rs o f o ur en vi ro n m e nta l p erf o r ma nce a nd s h are t h em w i t h o u r clie nts , u p o n th e ir re qu e s t, i n o rder fo r th e m to e v alu ate th e ir f le e t’s en vi ro n m e nta l f o o tp rint. Al l t he fo r mu la e u s e d f o r th e calcu latio n of o u r em i s s io n KP I s a re in line w ith th e o ne s u s ed b y t h e KP I p latf o r m: h ttp s : / / w w w. s hi ppi n g-k p i. o rg / .

CO 2 EM I S S I ONS R eferen ces: IMO M EPC / C irc . 4 7 1 : I n terim Guidel in es for v ol un ta ry s h ip C O 2 emis s ion in dex in g for us e in tria l s C O 2 emis s ion s in ton s a re c a l c ul a ted for ea c h v oya ge of ea c h ves s el a n d th en s ummed up for a l l v oya ges of ea c h ves s el . T h ey a re th en s ummed up for a l l ves s el s a c c ordin gl y. T h e tota l C O 2 emis s ion s for th e D a n a os fl eet a re produc ed a s per th e bel ow formul a :

∑ ∑∑ FC ×C v i j

ijv

Fj

Where: • FC _ i j i s th e mas s o f co ns u me d f u e l j at v oya ge i (metric ton s ) for th e ves s el v , • C _ Fj i s a no n- d ime ns io nal co nvers io n fa c tor between fuel j c on s umption , mea s ured in gra ms a n d C O 2 em i s s io n a ls o me as u re d in g rams ba s ed on c a rbon c on ten t (a s per th e upda te of th e I M O 2 0 0 0 s t u dy ( B u h au g e t a l, 2 0 0 8 ) ) E E O I (i n g r / to ns * mile s ) f o r e a ch ve s s e l is defin ed a s th e ra tio of ma s s of C O 2 emitted per un it of t ra n spo r t w o rk :

EEOI=

∑ni=1 ∑ki=1 (FCij×CFj) x106 n ∑ i=1(mcargo,i×Di)

Where: • j i s t h e f u e l ty p e • i i s t h e v o y a g e nu mber • FC i ,j , is th e ma s s o f co ns u me d f u e l j durin g v oya ge i (metric ton s ) • C Fj , i s a no n- d ime ns io nal co nvers io n fa c tor between fuel j c on s umption , mea s ured in gra ms a n d C O 2 emis s io n a ls o me as u re d in g rams ba s ed on c a rbon c on ten t (a s per th e upda te of th e I M O 2 0 0 0 s tu d y ( B u h a u g e t al, 2 0 0 8 ) ) : D ie s e l/ G as o il: 3 . 20 6 0 0 L ig h t F u e l O il: 3 . 15104 H e av y F u e l O il: 3 . 11440 • m c a rg o , i , is th e ca r rie d ca rg o mas s durin g th e v oya ge i • Di , i s th e d is tance in nau tical mile s c orres pon din g to th e v oya ge i. Th e a vera g e E E O I o f all ve s s e ls p ro d u ce s fl eet a vera ge EEOI .

102


SUSTAINABILITY REPORT 2019

103


DANAOS SHIPPING CO. LTD

I J U SCD IBJHΙΒΗΓΦ

SO 2 E MI SS I ON S

or oth er) a n d s ubs eq uen tl y by a fa c tor of 0. 0 2 to c ompute S O 2 emis s ion s (in ton n es per da y). T h e 0 . 02 S O 2 fa c tor is ex a c t a n d c omes from th e c h emic a l rea c tion of s ul ph ur a n d ox ygen to produc e S O 2 .

Referen c es : “ A n O nline S h ip E mis s io n s C a l c u l a t o r a s a D e cis io n- M ak ing A id a nd P o l i c y E va lu a tio n T o o l” , C . A Ko ntov a s & H . N P s a ra f tis , L a b o ra to r y f o r M aritim e Tra n spo r t , N atio nal T e ch nica l U nivers it y o f At h en s

A s fa r a s th e S O 2 in dex is c on c ern ed, th e fol l owin g ex pres s ion foun d in th e l itera ture th a t gives th e eq uiv a l en t s ul ph ur c on ten t per ton - n a utic a l mil e h a s been us ed for c a l c ul a tin g S O 2 I for ea c h ves s el a n d th e a vera ge h a s been produc ed giv in g th e S O 2 I (in gr/ ton s *mil es ) for th e wh ol e fl eet:

SO 2 em i s s io ns d e p e nd o n th e ty p e of fu el a n d m o re s p e cif ica lly o n th e s u lp h ur c o n t en t o f th e f u e l. O ne h a s to mu ltip l y t o t a l b u n k er co ns u mp tio n ( in to nne s p er da y ) b y t h e p erce ntag e o f s u lp h u r p re s e n t i n t h e fu el ( f o r ins ta nce , 3 % , 1 . 5 % , 0 . 5 %,

SO2I=

∑ni=1 ∑kx=1 (20xFCi,x×Six) x103 ∑ni=1(mcargo,i×Di)

Where: • FC i ,x , i s th e mas s o f co ns u me d f u e l x durin g v oya ge i (metric ton s ) • m ca rgo ,i , is th e car rie d carg o ma s s d u rin g th e v oya ge i • D i , i s th e d is tance in nau tical mile s corres pon din g to th e v oya ge i a n d • S i ,x , i s th e w e ig h te d avera g e o f % s ul ph ur c on ten t of fuel type x c a l c ul a ted by th e formul a :

Sx=

∑nj=1 (Ax,jxBx,j) ∑ni=1(Ax,j)

Where: • x, i s th e f u e l ty p e ( e . g . H F O , L S F O , M D O etc . ) rec eived by th e ves s el • n , i s th e nu mb er o f bu nk ering o p era tion s in th e reportin g period • S x , i s th e w e ig h te d a verag e o f % s u l ph ur c on ten t of fuel type x • A x,j , i s th e qu antity o f f u e l o f ty p e x rec eived durin g bun k erin g opera tion • B x,j , i s th e s u lp h u r co nte nt o f f u e l ty pe x rec eived durin g bun k erin g opera tion

104


SUSTAINABILITY REPORT 2019

NO x E MI SS I ON S

fa c tor eq ua l to 0. 1 0 0 (ton of NOX/ ton of fuel ) for s l ow s peed dies el en gin es a n d 0. 0 7 (ton of NOx / ton of fuel ) for medium s peed dies el en gin es . T h e NOXI emis s ion s in dex (in gr/ ton s *mil es ) for a v oya ge is c a l c ul a ted ba s ed on th e bel ow formul a :

Referen c es : T h e N o r w e g ian T o ll an d Avgiftsdirektoratet (The Norwegian Customs and Tax department). (Document only available in Norwegian). N O X em i s s io ns ba s e d o n th e N O X e mis s ion

∑ni=1(FCi,ME×CFME+FCi,DGxCFDG) x106 n ∑ i=1(mcargo,i×Di) Where: • i i s t h e v o y a g e nu mber , • FC i ,ME , is th e ma s s o f f u e l co ns u me d in M a in En gin e durin g v oya ge i (metric ton s ) • FC i ,DG , is th e ma s s o f f u e l co ns u me d in a ux il ia ry en gin e durin g v oya ge i (metric ton s ) • C F , i s a co nvers io n f a cto r be tw e e n f uel c on s umption , mea s ured in metric ton s a n d NO Χ emis s ion a l s o me a s u re d in me tric to ns : 1 . Sl ow s p e e d e ng ine s : 0 . 1 mt p er metric ton of fuel us ed 2 . M e d iu m s p e e d e ng ine s : 0 . 0 7 mt per metric ton of fuel us ed • m ca rgo ,i , is th e car rie d carg o ma s s d u rin g th e v oya ge i a n d • D i , i s th e d is tance in nau tical mile s c o r res p o nd ing to th e v o y a g e i

105


DANAOS SHIPPING CO. LTD

OUR EMISSION KPIs SUMMARY Th e b el ow e mis s io ns f ig u re s and e f f icien c y fa c tors c orres pon d to th e tota l of our opera tin g F l eet du ri n g 2 0 19 .

4 ,0 0 0,000

200000

3 ,5 0 0,000

180000 160000

0 2018

80000 60000 44,110

5 0 0,000

100000 93,638

1 ,0 0 0,000

3,091,913

1 ,5 0 0,000

120000

48,755

2 ,0 0 0,000

140000

97,501

2 ,5 0 0,000

3,183,708

C0 2 (tons)

3 ,0 0 0,000

NOx/S0 2 (tons)

D a n a os Fl e e t Emis s ions 2018 - 2019

40000 20000 0

2019 CO 2

NOX

SO2

D a n a os Fl e e t Emis s ions 2018 - 2019 18.00

0. 60

16.00

0.49

15.99

4.00 2.00

0. 20 0.23

6.00

0. 30

0.25

8.00

0.51

10.00

0. 40 16.41

C0 2 (gr/tm*mile)

12.00

0.00

0. 10 0. 00

2018 CO 2 E ff.

2019 NOX Eff.

106

SO2 Eff.

NOx/S0 2 (gr/tm*mile)

0. 50

14.00


SUSTAINABILITY REPORT 2019

As show n in th e a b ove g rap h , th e co mp an y’s en v iron men ta l footprin t wa s improved c ompa red to th a t o f t h e prev io u s y e a r . A d d itio na lly , th e tota l n umber of produc ed emis s ion s for 2 0 1 9 (C O 2 , NOx , S O 2 ) i s b y a perce nta g e o f 2 . 9 % , 4 % & 9 . 5 % res pec tivel y l ower c ompa red to 2 0 1 8 . Wi t hi n 2 0 19 , th e D a na o s ve s s e ls ’ o p era tin g da ys h a ve in c rea s ed a n d idl in g periods s ign ific a n tl y redu c ed. U ltra s u p er s low s te aming activity h a s in c rea s ed, a s a res ul t of th e reduc tion of th e a vera ge o pera t i n g s p e e d , w h ile th e d ra f t p ro f ile d i d n ot differen tia te s ign ific a n tl y. T o th is res pec t c on s umption a n d C O 2 emitte d h ave b e e n a cco rd ing ly reduc ed. T h e tn *mil es in dex on th e oth er h a n d rema in ed a l mos t st ea dy c o m p are d to th a t o f th e p re v io u s yea r, a s a res ul t, th e c a rbon in ten s ity for 2019 c ompa red to 2 0 1 8 h a s imp rove d .

CO 2

NO X

production (MT)

production (MT)

-2.9%

-7%

SO X

2019 Annual Air Emissions

production (MT)

-9,5%

T ECHNICAL UTILIZATION 99.9% FOR YE AR 2019

UT IL IZ AT ION 9 8 . 3 % F O R YE AR 2 0 1 9 F R OM 96, 8% I N 2018

The effec t i ve f le e t u tiliz atio n o f th e f le e t un der empl oymen t wa s 98. 3 % for th e yea r 2018, wh il e th e u t i l i z a t i o n p erce ntag e f ro m a te ch nical as pec t rema in s impres s ive a t th e l evel of 9 9 . 9%! T h e a bove m ea n s t h at th e s to p p ag e s d u e to te ch nica l rea s on s a c c oun t for on l y 0 . 1% of th e tota l opera tin g da ys . The a b ove p erce nta g e s a re co ns id ere d a m on g th e mos t c ompetitive in th e s h ippin g ma rk et.

107


DANAOS SHIPPING CO. LTD

OUR BUNKERS Th e b a r gra ph b el ow s h ow s o u r b u nk ere d qu anti ties a n d q ua l ity da ta for th e yea rs 2018 a n d 2 0 1 9 c on c ern ing our o pera b l e fl eet : T h e fuel q ua n tity del ivered i n 2 0 1 9 ba s ed on our bun k er deli very n otes , pres en ts a dec rease of 3 . 4% c ompa red to th a t of 2018. T h e a bove is in l in e with the low fuel c on s umption of th e fl e et as ex pl a in ed a bove. I f we wish to ma k e a q ua l ita tive a n a l ysi s of th e res ul ts ba s ed on th e detai led gra ph s of bun k ered q ua n titi es per fuel gra de a ppos ed h ere below, we s ee th a t th e l ow s ul ph ur fuel oil q ua n tity bun k ered is c on stantly in c rea s in g repl a c in g both HFO and M GO q ua n tities . T h is is a ttri b uted to th e I M O 2020 s ul fur regulati ons s in c e a l l ves s el s were s uppli ed with V LS F O a n d HS HF O appli ed on l y for EGC S fitted ves s el s. As a res ul t th e weigh ted a vera ge sulfur wa s s ign ific a n tl y reduc ed.

F l eet s iz e a n d en gin e power wi thi n ea c h yea r (in c l udin g th e four D a n a os Ba reboa ts ).

108


SUSTAINABILITY REPORT 2019

Bel ow i s t he b rea k - d ow n o f th e b u nk ere d qu an tities a n d th e c orres pon din g weigh ted a vera ge s ul ph ur c on t ent for e a c h gra de.

109


DANAOS SHIPPING CO. LTD

ENERGY EFFICIENCY OPERATING INDEX (EEOI) Devel o ped by th e I M O a s p er M E P C . 1 C i rc . 6 8 4 , th e E E O I ind e x calcu late s th e a m o u n t o f C O 2 e mitte d p er to n/ u nit/ T EU o f c a rgo trans p o r te d p er na u tica l mile. C O 2 o u t pu t p er carg o ca n b e u s e d a s a n i n di c a t o r o f a ve s s e l’ s f u e l e f f icie ncy . T h is o n l y repo rts C O 2 e mis s io n a s a re s u lt of fu el c o m b u s tio n. I n du st r y s tand ard iz atio n a nd verif ication o f C O 2 da ta is a p rere qu is ite in o rd er t o en a b l e f a ir , re lia b le me as u re me nt s o f C O 2 perf o r mance and to e nable C O 2 b en c hm a rk ing w ith co mp e titio n. Da n a o s has a ch ie ve d s ig nif ican t

improvemen t in C O 2 emis s ion s produc tion s in c e 2 0 1 2 , ma in l y due to th e c on s is ten t efforts in improv in g ves s el s en ergy effic ien c y a n d reduc in g fuel c os ts . T h e a bove improvemen ts h a ve been driven by th e res ul ts of a th orough tec h n ic a l res ea rc h in itia ted in 2008 a n d h a ve been rea l iz ed with in a c on trol l ed a n d s truc tured fra mework , with out c ompromis in g th e ves s el s ’ s a fety a n d util iz a tion . I n th e bel ow gra ph , th e D a n a os fl eet EEOI a vera ge for th e yea rs 2017, 2018 & 2019 c a n be s een .

110


SUSTAINABILITY REPORT 2019

111


DANAOS SHIPPING CO. LTD

I n th e b e low g rap h s th e E E OI figures for a l l c ompa n y ves s el s a re depic ted.

FLEET 1

2019

2018

37.8 28.2

33.5

23.5

19.6

18.6

27.5 22.0

20.2

AMALIA C

DANAE C

DIMITRIS C

20.0

CATHERINE C

LEO C

FLEET 3

2019

2018

47.4 38.8 34.9

31.8

20.2

COLOMBO

SINGAPORE

SEATTLE C

22.1

19.5

19.4 16.6

14.1

YM VANCOUVER

SUEZ CANAL

FLEET 4 16.6

2019 15.3

14.2 12.2

EUROPE

AMERICA

14.8

14.5 14.9

13.4

PUSAN C

LE HAVRE

112

16.8

15.4 16.8

DIMITRA C

16.7

PERFORMANCE

2018


ENVIRONMENTAL REPORT 2019

FLEET 5

2019 20.6

17.6

15.8

18.5 14.4

12.8

EXPRESS ARGENTINA

EXPRESS BRAZIL

17.4

16.8

18.0

17.8

EXPRESS FRANCE

12.3

EXPRESS SPAIN

EXPRESS BLACK SEA

BELITA

FLEET 6

2019 30.3

29.3

30.1 23.7

26.8

ADVANCE

STRIDE

25.1

24.1

25.9

SPRINTER

24.4

20.4

23.8

FUTURE

PROGRESS C

HIGHWAY

15,6

14,8

13,9

17,3

14,5

ZIM RIO GRANDE ZIM SAO PAOLO ZIM KINGSTON

ZIM MONACO

113

BRIDGE

2019 17,9

17,4

15,7

26.4

19.9

FLEET 7 15,7

2018 33.2

28.9

25.1

VLADIVOSTOK

2018

14,7 14,6

ZIM DALIAN

16,9

ZIM LUANDA

2018


DANAOS SHIPPING CO. LTD

FLEET 8

2019

17.7

16.7

17.3

15.9

14.1

11.6

14.8

14.6

11.6

10.3

CMA CGM MOLIERE

CMA CGM MUSSET

CMA CGM NERVAL

CMA CGM RABELAIS

CMA CGM RACINE

FLEET 9 17,9 15,2

13,3

CMA CGM ATTILA

CMA CGM TANCREDI

CMA CGM BIANCA

18,2

14,2

14,0

12,4

2019 2018 18,7

16,1

13,9

13,8

13,8

CMA CGM SAMSON

CMA CGM MELISANDE

GENOA

FLEET 10

2019

26.0 13.9

10.9

16.8

16.9

EXPRESS BERLIN

EXPRESS ROME

2018

10.5

2018

19.2

24.9

22.1

ANL TONGALA

DERBY D

10.4

EXPRESS ATHENS

FLEET 11

2019 48.7 15.1

13.4

12.8 13.7

12.1

MAERSK ENPING

MAERSK EXETER

39.3

13.7

MSC AMBITION

114

MSC ZEBRA

2018


ENVIRONMENTAL REPORT 2019

E E O I F O R THE DA N AOS FLEET (YEARS 2018-2019) Th e a vera g e E E O I h a s be e n re d u ce d by 2 . 6 % fo r 2 0 1 9 . T h is is ma inly attrib u ted t o t h e fa c t th at s p e e d h as be e n s lig h tl y dec rea s ed , w h ile th e w e ig h te d avera g e dra ft ha s be e n almo s t s table , le ad ing to l es s fu el c o ns u mp tio n, w h ils t th e to n* mile s i n dex rem aine d a lmo s t s ta b le f o r 2 0 1 9. As a gen era l o b s erv atio n, th e o p eratio n in l i gh t er dra f ts s lig h tly incre as e d in 2 0 19 c o m pa red to 2 0 1 8 . T h e f le e t’ s avera g e en ergy eff icie ncy f o o tp rint w a s imp roved w hen c o mp are d to th e p re v io u s y e a r, m a i n l y du e to mo re ca rg o car rie d w ith low er s peed. Wi th in 2 0 1 9 , a to tal o f 5 ve s s e l s w ere dr y do ck e d , 4 o f w h ich h a ve o p timiz ed t h ei r b ow , co ntrib u ting s ig nif ica ntly to the i m proved p erf o r ma nce and co ns u mp tio n . At t he en d o f 2 0 1 9 , a no th er 4 ve s s e ls h a ve en t ered a s h ip y ard in o rd er to p ro ce e d w ith dr y do c k a n d re tro f its . When i t c ome s to e a ch ve s s e l’ s ind iv id u al a ss ess m ent, mix ing tre nd s h a ve b e e n o b served e ith er u p w a rd o r d ow nw ard . Det a i l ed p erf o r mance a na ly s is an d c o m pa ri s o n b e tw e e n 2 0 1 8 & 2 0 1 9 is c o m pl et ed f o r e ach o f th e co mp a ny ’s vess el s w i th in th e f irs t qu ar ter o f e very y ea r a n d re s u lts a re u p d a te d in th e S E E MP manual. We a l s o i nco rp o ra te d , a calcu latio n to ol , t o m ea su re E E O I th ro u g h th e ve s s e ls’ da i l y t el eg rams in o u r D a na o s E nterp rise s o ft w a re b ack in 2 0 0 8 . S ince 2 0 0 8 , we ha ve vo l u n ta rily e nro lle d nine ( 9 ) o f o ur vess el s i n th e D N V - G L “ C O 2 I nd e x ” p ro je ct, m o n i t o ri n g th e ir p erf o r ma nce a nd C O 2 emissions. Within 2014, we have registered a n o t h er t e n ( 1 0 ) ve s s e ls f ro m th e D a na os fl eet i n t h e p ro je ct, w h ile th e s a me w as do n e i n 2 0 1 5 , ra is ing th e to tal nu mb er of en ro l l ed ve s s e ls to nine te e n ( 1 9 ) . A t the en d o f 2 0 16 w e co u nt tw e nty ( 2 0 ) ve s s e ls ha vi n g a n E nerg y E f f icie ncy O p eratio nal I n di c a t o r C er tif icate is s u e d by D N V G L . Wi t hi n 2 0 17 tw o o f o u r 1 3 1 0 0 s th a t w ere en ro l l ed i n th e s ch e me , w ere ch ar tere d a s b a reb o a t s , and th ere a f ter w ere re p la ced b y a n o t h er tw o ve s s e ls o f th e D anao s f le e t t h a t ha ve b e e n re g is tere d acco rd ing ly,

rec eiv in g EEOI c ertific a tion . A s a res ul t, th e tota l n umber of th e ves s el s pa rtic ipa tin g in th e s c h eme rema in s un c h a n ged for both yea rs 2017, 2018 & 2019. EEOI c ertific a tes a re ren ewed with in th e firs t q ua rter of every yea r, wh ere s pec ific s ets of da ta a re s en t to D NV GL, ev a l ua ted a n d dis c us s ed with D a n a os in order to produc e th e EEOI v a l ues .

115


DANAOS SHIPPING CO. LTD

DA N A O S CERT IFIED CO 2 INDEX BY DN V-GL FOR YEARS 2008-2019

116


ENVIRONMENTAL REPORT 2019

117


DANAOS SHIPPING CO. LTD

OUR FLEET’S OPERATIONAL PROFILE (2018 VS 2019)

M/E LOAD PROFILE % 60

53.3

2019

2018

48.1

%

40

21.8

20.7

21.2

22.6

20

4.7

7.3 0.1

0 USS 0-25% MCR

SS 25-35% MCR

Mid 35-55% MCR

Normal 55-75% MCR

0.3

High 75-100% MCR

SPEED PROFILE % 36.0

40

31.6

2019

33.4

30.8 27.4

30

%

33.3

20 10

1.8

1.8

0 Dead Slow 0-9 ks

DRAFT PROFILE % 40

29.0

%

30 20

13.0

13.0

2019

Slow 9-14 ks

Half 14-17 ks

Full 17-21 ks

2018

36.0 34.0

32.0 21.0

21.0

10 0 Scantling

Design

Light

Critical

Th e a b ove f ig u re s ind ica te , th at th e u l tra - s uper s l ow s tea min g (US S ) a c tiv ity h a s been s l igh tl y i n c rea sed w ith in 2 0 1 9 , w h ich is ju s tif ie d by th e reduc tion in th e weigh ted a vera ge s peed a n d dra ft pro fi l e. O p era tio n in d e s ig n d ra f t ra ng e h a s dec rea s ed in 2019, wh il e opera tion in c ritic a l dra ft h a s b een i n c re a s e d .

118

2018


ENVIRONMENTAL REPORT 2019

DANAOS ENERGY EFFICIENCY INDEX Da n a o s ha s d e s ig ne d e nerg y ma na g e me n t a l gorith ms , wh ic h a re in c orpora ted in our WAV E S a n aly tics p la tf o r m, in o rd er to a ch ieve a c l os e mon itorin g of ves s el s ’ en ergy perfo r m a nce . T h e e f f icie ncy ind e x , d e s ign ed by our R & D depa rtmen t, c on ta in s t h e m et ri c s o f qu antif y ing th e imp le me nta tion of en ergy effic ien t mea s ures a n d i n s t ru c t ed p ractice s o nbo a rd , as w e ll a s th e metric s for a s s es s in g th e embeddin g o f en ergy aw a re ne s s o f D a na o s ’ p ers o nn el on boa rd. T h e in dic a tor in q ues tion is c o n s i dered a s th e b a ro me ter o f th e co mp a n y’s ’ pol ic y a s s imil a tion a n d prov ides a good a ss ess m ent to o l f o r id e ntif y ing a re a s o f f ered for furth er improvemen t. F or th e yea rs 2 0 1 8 a n d 2 0 1 9 , th e avera g e e nerg y e f f icie ncy in dex , a s c a l c ul a ted th rough Wa ves , for a l l c ompa n y vess el s , i s a p p o s e d h ere b e low .

ex pl a in ed th orough l y durin g in - h ous e tra in in g. Ea c h ves s el depen din g on wh eth er th e reefer l oa d is rec eived th rough on l in e s ys tems h a s a s epa ra te ta rget. A l l ves s el s in th e D a n a os fl eet h a ve a c h ieved th eir en ergy ta rgets .

Th e a vera g e e f f icie ncy ind e x f o r 2 0 19 w a s 3 3 . 7 % . T h e a b ove , is a n ind icato r of o pt i m u m e nerg y u s e o nbo a rd o u r ve s s e ls a s a res u l t o f th e e mbe d d e d e nv iro nme ntal aw a ren ess o f o u r cre w a nd th e ir co ntinu o us effo r t s t o a d o p t th e “ s ave e nerg y o n b o a rd” m es s a ge wh o s e imp le me nta tio n w a y s a nd a rea s o f ap p lica tio n a re p re s e nte d a nd

119


DANAOS SHIPPING CO. LTD

Th e a vera g e re e f er u tiliz a tio n f o r 2 0 1 9 wa s 14. 7 % a n d rema in ed s tea dy c ompa red to th e prev ious y ea r . Th e g ra p h s o f avera g e re e f er lo a d a n d a vera ge reefer util iz a tion for a l l c ompa n y ves s el s a re presen t ed h ere b e low .

120


ENVIRONMENTAL REPORT 2019

121


DANAOS SHIPPING CO. LTD

ENVIRONMENTAL SHIPPING INDEX (ESI) Da n a o s w a s e nro lle d , o n a v o lu nta r y b a s i s , in th e E n vi ro n m e ntal S h ip I nd e x ( E S I ) s y s te m, wh ic h is devel o ped by th e W o r ld P o r t C limate I nitia tive ( WP C I) ( ht t p : / / e s i. w p ci. nl/ P u blic/ Ho me ) . So fa r , 4 5 o f o u r ve s s e ls h a ve be e n offic ia l l y en ro l l ed o n th e W P C I E S I d ata ba s e , ( e x c l udin g th e 2 ba reboa t c h a rtered), eith er by our c h a rterers o r di rec t l y by D anao s . H ow e ver , E S I h a s been c a l c ul a ted for a l l our F l eet ves s el s buil t a fter 2000 ( ha vi n g a N O x te ch nica l f ile ) as it is co ns idered a n ex tra tool for ev a l ua tin g our ves s el s ’ en v iron men ta l perfo r m a nce and an ins tru me nt f o r co ntributin g to our c l ien ts ’ s us ta in a bil ity pol ic y. Bel ow you c a n fin d t h e rel eva n t g ra p h co ntaining a ll E S I s co res for th e pa s t 5 yea rs , from 2 0 1 5 to 2 0 1 9 .

Th i s pro j ec t is a v o lu ntar y s y s te m d e s ig ned to improve th e en v iron men ta l performa n c e of s ea goin g vess el s a nd a n ins tru me nt to v is u aliz e th e en v iron men ta l performa n c e of s h ips rega rdin g a ir pol l uta n ts a n d C O 2 . I t ta k e s th e N O x a nd S O x e mis s ion s direc tl y in to a c c oun t a n d rewa rds doc umen ta tion a n d m a n a gem e nt o f e nerg y e f f icie ncy , lik e EEOI , A M P in s ta l l a tion s a n d S Ox S c rubber in s ta l l a tion s . A n y vess el c a n b e e nro lle d e ith er f ro m h er man a ger/ own er or c h a rterer.

122


ENVIRONMENTAL REPORT 2019

H er c o n su mp tio n, d is tance and b u nk ering da ta s h oul d be upda ted in th eir da ta ba s e every s ix mon th s w hen t he ne w E S I v alu e s a re calcu late d an d rel ev a n t c ertific a tes a re produc ed. T h e ES I s c ores for a tota l o f 4 7 ves s e ls ( e qu ip p e d w ith a N O x te ch nic a l fil e) h a ve been c a l c ul a ted by th e D a n a os R & D depa rtmen t b a s ed o n th e d a ta av ailable f o r th e co r res pon din g yea rs (from 1/ 1- 31/ 12) a n d a re depic ted in th e gra ph a b ove . T h e d if f ere nce s o b s erve d in s ome c a s es between D a n a os ’ c a l c ul a ted ES I v a l ues a n d th e o n es i n t h e W P C I w e b s ite , a re ow e d to the differen t period th a t th e c a l c ul a tion ta k es pl a c e.

P M i s i n di re ctly inclu d e d b e ca u s e o f its stron g rel a tion s h ip to S Ox . V es s el s with ES I in dex es a bove a c er t a i n s c ore ( v a r y ing f ro m p o r t to p o r t) a re el igibl e to be gra n ted, a s a rewa rd, a dis c oun t on port du es i n m ore th a n 2 0 ma jo r p o r ts w o r ld w i de. V es s el s c a l l in g EC A a rea s th erefore burn in g M GO or 0 . 1% UL SFO a re h ig h ly re w ard e d , g aining h ig h s c ores . C on tra ry to th e a bove, th e ves s el s c a l l in g n on - EC A a rea s, a re no t lik e ly to a ch ie ve a h ig h s c ore. T h e bel ow ta bl e with ES I s c ores refer to th e 4 2 ves s el s s u b sc ri b ed in th e W P C I a nd th e ir s co re is a c c ordin g to th e WPC I web s ite a n d depen din g on th e ves s el , a re va l i d fo r th e me ntio ne d p erio d . E xpress At h e ns h as a n E S I s co re o f 4 4 .4 , wh ic h is th e h igh es t a mon g D a n a os ’ regis tered ves s el s a c c o rdi n g to W P C I ’ s w e bs ite .

123


DANAOS SHIPPING CO. LTD

NO X 5.9

SO X 23.45

124


ENVIRONMENTAL REPORT 2019

CO 2 5

OPS 10

ESI 44.4

> 125


“We shall require a substantially new manner of thinking if mankind is to survive” Albert Einstein


C o n t a ct C SR D ep a r tmen t e-m a i l : c s r @da n a o s . c o m Tel ep h o n e: + 3 0 2 1 0 4 1 9 6 5 5 6

R&D Depa r tmen t e- ma il : Rn D@d a n a o s . c o m T el epho n e: + 3 0 2 1 0 4 1 9 6 5 0 0


W o rl d - C la s s S h i p p i n g , L e a d i ng -Ed g e Ex p er t i s e w w w . d an a os s h i p p i n g . g r


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.