140 Years of Hamburg Süd

Hamburg Süd has been in existence for 140 years.

That's a long time for any company.

There is a special exhibit going on in honor of this anniversary.

You may look at photos from the exhibition by
clicking on this link


Here's the press release advising of this exhibit.

Special exhibition “140 Years of Hamburg Süd” at the International Maritime Museum in Hamburg



Hamburg 15 November 2011. From 15 November 2011 to 25 March 2012, the special exhibition “140 Years of Hamburg Süd” can be viewed at the International Maritime Museum in Hamburg . It allows a unique glimpse into the history of the shipping group – with a host of historical paintings, posters and model ships. The occasion for the special exhibition is the 140th anniversary of Hamburg Süd, which was founded on 4 November 1871 by eleven eminent Hamburg merchants and ship owners.



The highlights of the show include the original model of the museum freighter “Cap San Diego” from 1961 and a 4.5-metre-long model of the celebrated Hamburg Süd passenger liner “Cap Arcona” from Blohm + Voss. Also on display are oil paintings by the well-known marine painters Hans Ritter von Petersen, Johannes Holst and Leonhard Sandrock, as well as ship posters from the 20s and 30s. The latter convey a unique impression of the glamorous era of Hamburg Süd cruises. Completing the broad sweep of the special exhibition is a film on the history of Hamburg Süd, incorporating numerous historical sequences, and an interactive sea chart showing the current location of all the shipping group’s owned vessels.



“The exhibition is like a living journey through time covering the different epochs of our history,” says Dr Ottmar Gast, Chairman of the Executive Board of Hamburg Süd. “It shows the dynamic development of a shipping company that started out in 1871 with three small steamers sailing to Brazil and La Plata and today links up the continents as one of the world’s 15 largest container lines.”

CSAV - financial information

Here's the English version of the CSAV news

This was translated by someone who is a professional translator.

If you need something translated from Spanish to English
you may contact her at nllamas@cox.net

translated by Nicolette Llamas
From MundoMaritimo 11-11-11:

CSAV is continuing to navigate turbulent waters given that in the third quarter, additional negative numbers will be added to the US$525 million that it lost in the first half of the year. That is how a recent Corp Research report is determining that the shipping line would report a negative balance of US$315 million in the July through September period, with which it will accumulate a US$840-million loss in the first nine months, estimating on the market that it would rise above US$1.1 billion in 2011.

However, in this case, the scenario is more complex since, unlike the first six months during which the loss was due to a 44.8% rise in costs that counteracted a 19% rise in sales, in the third quarter, revenue would drop 13.2%, totaling US$1.401 billion for the period, within the framework of the reduction in the size of the company that Luksic Group is promoting. In turn, CSAV’s EBITDA would be negative US$277 million as opposed to US$196 million in the black for the same period in 2010.

And for the rest of 2011 and next year, the scenario would not be favorable either, given that the shipping business will continue to have a strong imbalance between supply and demand since, according to the specialized consultant Alphaliner, the world fleet could increase 8.5% this fiscal year and 8.7% in 2012, according to the August order book. In that regard, it is estimated that ocean freight rates will continue to fall since there would continue to be a surplus of transport capacity in the midst of a less dynamic world market, accompanied by high oil prices.

The latest available numbers reveal that in September, CSAV reported a 12.2% decrease in shipped containers relative to the same month in 2010, after adding up the 242,900 TEUs that they moved. Meanwhile, in the third quarter, the company transported 785,100 TEUs, which represented a 3.4% reduction relative to a similar period in 2010.

Leasing factor

CSAV is now much more exposed than the rest to the business’ ups and downs, given that 87.2% of the 90 vessels with which it operates are leased, while the industry average is around 50% owned vessels.

Observing the results from the first two quarters from the shipping lines that report, it stands out that CSAV is by far the one showing the greatest losses, but at the same time, it is second in increasing its sales.

For CSAV, the “leasing factor” is highly significant, first of all because, according to Corp Research, not having its own fleet, it loses the opportunity to participate in the ship-owning business, which implies using the vessels as though they were property assets, and secondly, because leasing them represents around 18% of the company’s total costs. In addition, the investment bank specifies that a disconnect between the leasing price and freight rates has been being generated, “exposing a gap that is damaging to the company’s results.”

Who will merge?

There were not the anticpated merges and bankruptcies the last couple of years
in the container business. Mostly because governments inter veined.

Let's see what happens in the next year.
Some people think there will be some..

From The Journal of Commerce

Lazard's Stokes says carriers are looking to cuts costs, expand market share

Further consolidation of container shipping lines is likely as carriers seek to cut costs, expand market share and bolster balance sheets, said Peter Stokes, senior analyst and head of shipping at investment bank Lazard.

“I believe that we will finally see a number of non-cash defensive mergers as companies struggle to remain competitive on the major east-west routes or seek to strengthen their position in north-south and intra-regional trades,” Stokes told the Marine Money conference in New York.

Container shipping survived 2009’s market slump, which produced more than $15 billion in losses, without major failures or consolidation. Stokes said, however, that container shipping and certain specialized sectors of shipping may be better candidates for mergers and acquisitions than commoditized bulk shipping companies.

“This is because these are businesses which are much more complex to operate, where greater synergies can be realized and where factors such as market share and long-term customer relationships can be a significant part of value,” Stokes said. “In the current, desperately poor, container shipping market, the arguments for consolidation for purely defensive reasons are hard to refute."

He said that mergers of large container ship lines during the last 15 years have been difficult to pull off but have shaved about 3 percent off the merged companies’ operating costs. “Cost savings alone … provide a compelling case for consolidation,” Stokes said.

Mergers and acquisitions also increase market share and can provide balance sheets with the “size and strength… to support the continued heavy investment needed in the next generation of larger and more fuel-efficient container ships.”

Stokes acknowledged that some mergers of recent years, such as the 1996 union of P&O Containers and Royal Nedlloyd, and A.P. Moller-Maersk’s 2005 acquisition of P&O Nedlloyd, proved more problematic than expected.

But he said the overall experience supports the case for further consolidation of container shipping. Maersk’s purchase of P&O Nedlloyd solidified the Danish company’s dominance in container shipping, and that the acquisitions by Hapag-Lloyd of CP Ships and by Neptune Orient Lines of APL eventually produced benefits that outweighed initial difficulties.

“In all of those cases… the immediate post-deal experience for the acquirers was difficult. And yet, all three companies have survived, and all three would say they are in a better strategic position now than they would have been had they not made those acquisitions.”

Update- CSAV financial situation

There is a new article today regarding CSAV.

This is the spanish version. I will have an english translation available on
Monday.

From MundoMaritima

Turbulentas son las aguas por las que sigue navegando la CSAV, dado que a los US$525 millones que perdió en la primera mitad del año, se sumarán nuevos números rojos en el tercer trimestre. Es así como un reciente informe de Corp Research establece que en el período julio-septiembre la naviera reportaría un saldo negativo de US$315 millones, con lo cual en los nueve primeros meses acumulará una pérdida de US$840 millones, estimándose en el mercado que en el 2011 se elevaría por sobre los US$1.100 millones.

Pero en esta oportunidad el escenario es más complejo, pues a diferencia del primer semestre, en que la pérdida se dio por un alza de 44,8% en los costos, lo que contrarrestó la subida de 19% en las ventas, en el tercer cuarto se verificaría una caída de 13,2% en los ingresos, sumando en el lapso US$1.401 millones, en el marco de la reducción del tamaño de la empresa que está impulsando el Grupo Luksic. A su vez, el Ebitda de Vapores sería negativo en US$277 millones frente a uno positivo de US$196 millones de igual período de 2010.

Y para lo que resta de 2011 y el próximo año, el escenario tampoco sería favorable, dado que el negocio naviero seguirá presentando un fuerte desequilibrio entre la oferta y demanda, pues según la consultora especializada Alphaliner la flota mundial podría crecer 8,5% este ejercicio y 8,7% en 2012, de acuerdo al libro de órdenes de agosto. Y en ese sentido, se estima que los precios de los fletes navieros seguirán a la baja, debido a que se mantendría una sobreoferta en la capacidad de transporte, en medio de un comercio mundial menos dinámico, acompañado por altos precios del petróleo.

Las últimas cifras disponibles revelan que en septiembre CSAV registró una merma de 12,2% en los contenedores transportados, respecto de igual tramo del 2010, al sumar los 242.900 Teus movilizados. En el tercer trimestre, en tanto, la compañía transportó 785.100 Teus, lo que representó una disminución del 3,4% en relación a similar período del año previo.

Factor Arriendos

Vapores ahora está mucho más expuesta que el resto a los vaivenes del negocio, dado que un 87,2% de los 90 barcos con que opera son arrendados, mientras que el promedio de la industria maneja en torno a un 50% de naves propias.

Al observar los resultados del primer semestre de las navieras que informan, destaca que Vapores es lejos la que arroja mayores pérdidas, pero a la vez es la segunda que más aumentó sus ventas.

Para CSAV el “factor arriendos” es altamente sensible, primero porque –según Corp– al no contar con flota propia, pierde la posibilidad de participar en el negocio armador, el que implica utilizar las naves como si fueran activos inmobiliarios, y segundo porque la renta de éstas representa en torno a un 18% de los costos totales de la compañía. Además, el banco de inversiones detalla que se ha venido produciendo un desacople generado entre el precio de los arriendos y las tarifas de fletes, “revelando una brecha dañina para los resultados de la compañía”.

Es así como a 12 meses las obligaciones de la empresa por concepto de arriendos llegan a US$761 millones, cifra que se eleva a US$2.164 millones a cinco años, y a US$2.621 millones en total. A diciembre de 2010 –según un informe de marzo de Fitch, clasificadora que ya no cubre a Vapores– el arrendamiento consistía a 185 buques y 411.983 contenedores. Y agrega que los arrendamientos operativos tomados por CSAV con sus armadores pueden variar en plazos de entre tres meses a cinco años, mientras que en el caso de los contenedores no supera los ocho años, sin opción de renovar.

De acuerdo a Corp, el costo de arriendo diario por nave de Vapores llegaría a unos US$14.000 para fines de 2011, que crecería en base al incremento en el volumen esperado por la industria de 6% anual en el largo plazo. Y en ese sentido, si se consideran los 185 barcos de 2010, en ese año CSAV habría tenido que desembolsar unos US$945 millones sólo por ese concepto.

Estaba Escrito

Entonces, ¿cómo se explica que la Sudamericana haya tomado estos importantes compromisos, considerando el complicado escenario que venía mostrando desde hace tres años la industria naviera mundial? De hecho, el 17 de marzo de 2009 Fitch había bajado la clasificación de los bonos de Vapores a categoría BBB desde A, asignando un Rating Watch Negativo, argumentando en uno de sus puntos que “CSAV ha visto empeorar sus resultados operacionales producto de la combinación entre la caída del precio del flete naviero, la existencia de contratos de arriendo de naves a tarifas pre-crisis, y un aumento del costo del combustible”.

Cifras

13,2% bajarían los ingresos de Vapores en el tercer trimestre, sumando en el período US$1.401 millones.
US$14.000 sería la tarifa que pagaría CSAV por cada día de arriendo de los buques que opera.
US$2.621 millones son las obligaciones totales que tiene la Sudamericana por concepto de arriendo de naves.
A comienzos de 2009 se estimaba que en 2011 la flota de portacontenedores sería hasta un 60% más grande, provocando sobreoferta.

Future of CSAV

I have a site meter on this blog, where I can see what readers are searching for.

Recently, there have been a lot of people searching for "CSAV Bankrupt",
or something to that effect.

There hasn't been anything in the English news, but I found in Mundo Maritimo,
this article from September.

I am not going to translate it. If you can't figure it out, try some of
the translation programs.

However, it essentially questions the future of CSAV.


Here's the link

CSAV lanza nuevo plan de rescate por US$1.200 millones
Firma creará nueva sociedad que controlará SAAM y la podría abrir a la bolsa
Edición del 05 de Septiembre de 2011

Tras registrar pérdidas por US$525 millones en el primer semestre de este año -a causa de las negativas condiciones de precios de venta y alzas de costos-, en la Compañía Sudamericana de Vapores (CSAV) ya saben que 2011 terminará con resultados en rojo.

Para asegurar la estabilidad económica de la empresa, la mayor naviera del país anunció un nuevo plan de fortalecimiento financiero que involucra recursos por US$ 1.200 millones, monto que se basa principalmente en un aumento de capital.

Esto, porque la propuesta involucra también líneas de crédito de sus mayores accionistas, Quiñenco de los Luksic (18%) y Marinsa (20,2%, ligada a los Claro), por US$350 millones que se pagarán con dicha capitalización. En paralelo, Vapores negocia alianzas con las principales navieras del mundo y prevé crear una nueva sociedad que controlará su filial Sudamericana Agencias Aéreas Marítimas (SAAM) y que saldría a bolsa.

En un hecho esencial enviado ayer a la Superintendencia de Valores y Seguros, CSAV indicó que en la próxima junta extraordinaria de accionistas -el 5 de octubre- se votará el mencionado aumento de capital. Quiñenco se comprometió a ejercer su opción preferente y a extender su suscripción hasta los US$ 1.000 millones. Mientras, el acuerdo de Marinsa es suscribir US$ 100 millones.

Quiñenco suscribirá los US$ 1.000 millones sólo en el escenario de que no exista interés del mercado en la operación. Fuentes ligadas a ese grupo señalan que si esa situación ocurre, quedarían con un porcentaje superior a Marinsa en la propiedad de CSAV. Pero precisan que es imposible determinar hoy alguna cifra, pues aún no se determina el precio de la colocación y tampoco si habrá o no excedentes del aumento.

En dicha junta de accionistas, asimismo, se dejará sin efecto la parte pendiente del aumento de capital acordado el 8 de abril: US$ 500 millones. Ese monto era parte del plan de rescate por US$ 1.000 millones anunciado a inicios de año por la naviera.

De los US$350 millones que recibirá como préstamo Vapores, Quiñenco aportará US$250 millones y Marinsa los otros US$100 millones.

Vapores indicó que una vez que se suscriba y pague al menos US$1.100 millones del aumento de capital, dividirá CSAV con la creación de una nueva sociedad que controlará a SAAM. Los accionistas de esa nueva empresa serán los mismos dueños de Vapores. Esta modificación posibilitaría la apertura en bolsa de SAAM, indicaron fuentes ligadas a la naviera.

Dicha filial es uno de los activos más atractivos de Vapores y tiene participaciones en puertos.

¿Alianza, fusión o absorción?

Junto con las medidas para darle más estabilidad financiera y mayor caja a la compañía, en Vapores indicaron que están en la búsqueda de un socio estratégico en el negocio de portacontenedores. Fuentes conocedoras del proceso señalaron que CSAV está conversando con las principales diez navieras del mundo. Las opciones que se barajan van desde la incorporación de algunas de estas navieras extranjeras a la propiedad de Vapores o que esta última entre en alguna de sus competidoras. También se estudia una fusión, indicaron las fuentes.

Entre esas firmas podría estar Mediterranean Shipping Company (MSC), la segunda mayor naviera del mundo, y la francesa CMA CGM, la tercera del planeta. La primera del ranking es APM-Maersk.

Este año, Vapores ya logró acuerdos con MSC y CMA CGM para transportar cargas de forma conjunta, lo que les permite ahorros de costos en un mercado donde el alza del petróleo afecta fuertemente el resultado de las firmas.

Maersk losing money...

Two months ago this is what I blogged

Wednesday, September 14, 2011
Maersk struggles to raise rates

Maersk is having difficulty to raise rates because of all of the new
ships coming in, increasing capacity.

They don't mention where all these new big vessels are coming
from, but at least some of them belong to Maersk.

And today Maerk reports they lost $297 million in the 3rd quarter.

The fact that the CEO is blaming excess ship capacity on slumping cargo,
and not all the big new vessels they put into the trade, is no surprise.
What CEO ever says "we screwed up"?

From The Journal of Commerce

Carrier forecasts full-year loss as pricing slides despite volume gains

Maersk Line said Friday it lost $297 million on shipping in the third quarter amid collapsing freight rates on the key Asia-Europe trade lane, and the world’s largest ocean container carrier said it would close the year in the red.

The loss, following a $1 billion profit in the third quarter a year ago, came as average freight rates, including bunker surcharges, across Maersk’s global system declined 12 percent to $2,860 per 40 foot container from $3,251 in the third quarter of 2010.

Traffic grew 2 percent on the trans-Pacific while rates were down 16 percent. Latin American shipments grew 18 percent as rates dropped 13 percent.

”We see a couple of tough years ahead,” for the industry, Anderson said, marked by continued overcapacity and very unstable earnings.

“It’s not an environment for small players and those without strong balance sheets,” he said.
The Copenhagen-based line lost $124 on every 40-foot container it transported compared with a “close to a record” $616 per-box profit in 2010.

This eroded the impact of a 16 percent increase in traffic to 4.2 million 20-foot equivalent units from 3.6 million TEUs, leaving revenue up a modest 4 percent to $7.23 billion.

Nils Andersen, CEO of parent company A.P. Moller-Maersk, blamed excess ship capacity for the “dramatic” and “highly unusual” slump in ocean freight rates in the peak shipping season to levels last seen in the 2009 container shipping slump.

“Everybody was gearing up for the peak season in the third quarter and the peak season didn’t occur,” Anderson said.

The underperforming container business was largely responsible for A.P. Moller-Maersk reporting a bigger-than-expected 78 percent drop in net profit to $371 million, from $1.67 billion in the third quarter of 2010.

The company forecast a full-year net profit of $3.1 billion to $3.5 billion compared with $5.02 billion in 2010 of which Maersk Line contributed $2.64 billion.

Maersk Line’s Asia-Europe traffic soared 24 percent in the third quarter while rates plunged 26 percent. But Anderson denied the carrier is waging a war of attrition on its largest trade lane. “We are not leading a price war … but we are determined to stand firm,” he said.

They just don't get it....

Ocean carriers lost their anti-trust immunity a few years ago.

But, I guess they didn't think the U.S. Government would bother checking
into their activities.

Guess the executives aren't aware that the U.S. Government sent people
to jail a few years ago for collusion.
Anyone remember this?

Tuesday, February 3, 2009
Pleading Stupidity

Back in October, I posted about some people going to jail for anti-trust violations.

This week the first one was sentenced to jail time. In his defense, he pleaded he was only following orders.

Former Sea Star Line executive Peter Baci, the first person sentenced in a federal antitrust investigation of Puerto Rico carriers, claims that he participated in a price-fixing scheme under orders from an official at Saltchuk Resources, a part-owner of Sea Star.

Baci was senior vice president, yield management, at Sea Star until he was fired last year after the federal investigation became public. He was sentenced today to four years in prison, a $20,000 fine and two years of supervised release after pleading guilty to antitrust conspiracy.

The FMC is warning folks...

From The Journal of Commerce

Federal Maritime Commission Chairman Richard Lidinksy says the container shipping industry's trans-Pacific discussion groups are showing "near outright defiance” of a commission's oversight order and warned he'll take action unless he gets timely responses to questions.

Lidinsky's broadside Thursday against the Transpacific Stabilization Agreement and the Westbound Transpacific Stabilization Agreement came after they have “stiff-armed” the commission with “shockingly tardy” responses.

The FMC in September 2010 ordered transcripts of all TSA and WTSA meetings following an investigation of charges the carriers manipulated container and vessel capacity to raise rates in late 2009 and early 2010. The order stands until April 2012.

“We have a situation where a group of shipping lines have been given antitrust immunity to collude to raise the rates that American shippers and consumers pay. ... All we ask in return are some transcripts and minutes – something just about any lawyer gets for simple depositions or proceedings as a routine matter,” Lidinsky said

The groups were given 21 days after a meeting to file a transcript, but FMC General Counsel Rebecca Fenneman said some groups didn’t file transcripts until as much as 28 days after the meeting. Out of 83 transcripts of live TSA meetings or conference calls, 18 were late. Out of 121 meetings by the WTSA, 24 transcripts were late.

The commission also required copies of email exchanges among TSA and WTSA members, and one was a year late. The discussion agreements notified the FMC only once that a transcript would be late.

Fenneman said the late filings appeared to be due to clerical difficulties. Lidinsky agreed, noting some carriers in the agreements individually were “excellent regulatory citizens.”

Ha Ha.