It was the second time unlucky for the Dunedin man, who hoped to row, paddle and sail along the coast in his modified surf canoe.
A hatch taking on water caused the 31-year-old acupuncturist to postpone his first attempt after only a day on the water, and he hoped his second attempt this month would be more successful.
While the vessel performed well in calm water, down wind, and surfing swells, it lacked the ability to perform in more challenging conditions, he said.
The decision to end his planned six-week journey was a "hard and humbling call to make when so much time and planning has been invested".
"But when it comes to the sea, wise decisions and safety are paramount."
Despite the setback, Mr Daniels said he still hoped to design a boat that could be sailed, paddled and rowed in the biggest sea conditions.
"Maybe I'm dreaming ...
"But new designs are built on dreams."
Mr Daniels said following a kayaking trip to Milford Sound this week, he would start with a "blank canvas", designing a vessel capable of achieving his goal.
"It's never been done.
"It might not even be realistic or possible ... but how will I know unless I give it a go?"
