CSAV looking for a buyer
November 25, 2011
Struggling Chilean container line CSAV has asked financial advisor Celfin Capital to find a buyer for its container business.
CSAV has decided to dispose of the business after posting a second quarterly loss in Q3, due to weaker cargo demand and the volatility of freight rates.
The third-quarter net loss of US$343 million was similar to a loss of $339 million in the previous quarter. In the corresponding quarter of 2010 the company made a profit of $149 million.
“The decline in freight rates, lower utilisation of vessels and the high cost of fuel continues to negatively impact the margins of the industry and of CSAV,” the company said.
A report in IFW’s sister publication, Lloyd’s List, reveals that, in an effort to reduce losses in Q4, CSAV has suspended four services and is in talks with Dutch company Boskalis over a joint towage operation.
CSAV has also made alliances with other carriers to co-operate on Asia-Africa, South America-Europe, Asia-west coast Latin America, Asia-Brazil and India-Europe services next summer.
The restructuring of the routes will allow CSAV to considerably reduce the exposure and volatility of its results, even if market conditions remain unstable next year.
Courtesy of IFW
