Wednesday, August 24, 2011

Prospects darken for CSAV as July box volume slips 2pc to 264,200 TEU

chilean_carrier_compania_sud_americana_de_vapores (CSAV)

CHILEAN carrier Compania Sud Americana de Vapores (CSAV) has announced a two per cent year-on-year decline in container throughput to 264,200 TEU in July.

This was the lowest monthly volume posted since June 2010, a situation blamed on weak rates and markets, which induced CSAV to abandon long-haul strings two months ago.

The big factor in the decline, reported Paris-based maritime consultancy Alphaliner, was CSAV's withdrawal from the Far East - US west coast trade in June, when the ASIAM service was suspended.

In March, CSAV had already withdrawn from the Far Ear-US east coast trade. CSAV also withdrew two services in July, the Far East-West Med, or the Mare Nostrum Service, and the NACSA Mexico-WCNA service.

CSAV also combined its India-Europe (IMEX) service within joint services with MSC, under a wider rationalisation programme with the Geneva-based carrier.

CSAV has also stripped away tonnage from 588,000 TEU in March to 494,000 TEU today. Since embarking on an aggressive strategy in 2009, CSAV's global ranking had climbed from 16th to seventh, but has since slipped back to 10th. CSAV suffered a net loss of US$186 million for the first quarter of 2011 and is expected to announce a negative result when it releases its second quarter report later this week.