Wednesday, June 17, 2009

CSAV won't survive

I don't think CSAV will make it. There will not be a recovery any time soon, and they just don't have the deep pockets which are needed to survive in international shipping.

The ship owners who have ships on charter to CSAV did everything they could to keep them in business, and some are now having second thoughts.

Also, some of the comments now coming out are interesting.

And, by the way, congrats to Janet Porter who called this dead on in her blog posting, Delaying the inevitable.

This, from Lloyd's List

EMBATTLED Chilean container line CSAV has come under fire from rivals and shipowners for cutting freight rates weeks after being handed reduced charter rates on 79 of the vessels operating in its fleet.

But some owners are beginning to regret having agreed to the deal, as CSAV shows little sign of having learned its lesson after threatening counterparties with bankruptcy if they did not bail out the company.

Hamburg shipowners Bertram and Erck Rickmers, who each participated in the rescue in a small way, said CSAV had come within “seconds” of going bankrupt. Furthermore, if CSAV had not been saved, shipowners with vessels on charter to the line would have been liable for delivering cargo in transit to the final destination.

click here for complete article

1 comment:

Anonymous said...

Dont see why CSAV dropping its prices is surprising. They need to do all they can now to fill its ships.
The big boys have been dropping prices all this time - so why are they complaining now?