From The Journal of Commerce
As volume falls, glut of container capacity cuts freight rates
Troubled Chilean carrier CSAV reported a loss of $412.6 million in the first half of 2009 compared to an $18.3 million profit in the same period last year on declining volumes and freight rates.
The carrier’s revenue fell 36.7 percent to $1.54 billion from the first half of last year as the global glut of container tonnage ate into freight rates.
The carrier’s operating costs fell 24.8 percent to $1.72 billion in the first six months of the year due to a 40 percent drop in fuel prices on the previous year, the company said.
CSAV has been scrambling to raise fresh capital in recent months so it can continue operating. It raised $145 million of new capital in July, most of it in the form of new equity from existing shareholders.
It also sold its nearly 26.77 percent stake in port services company Agunsa in July in an auction that raised $36.8 million.
More recently, it has exchanged equity stakes with some of the owners of the ships it has chartered in return for lower charter rates.
CSAV approached Seaspan, the Hong Kong-based owner of two 4250-TEU vessels it charters in an effort to renegotiate its charter rates, but Seaspan declined to participate in the restructuring.