CSAV and CCNI project investments in their fleets

The year 2012 was difficult for the shipping industry due to the international crisis, which caused the world economy to grow by only 3.2% overall, 3.8% less than it had recorded in 2011.
Emerging economies such as Russia, India and Brazil saw their growth decrease significantly, and that brought consequences in demand for shipping. While there was an increase of 7% last year, this indicator was slightly lower than in the preceding year (7.7%).
With respect to the existing fleet, it rose by 7.8% since construction yards had orders that could not be stopped, but it was a little lower than the previous year when it grew by 8.2%. Even so, there has been a decrease in the levels of shipbuilding orders which fell from 20% to 14%.
“That means that the market has adapted to existing demand conditions,” says the general manager of the Chilean Association of Shipowners, Arturo Sierra.
The global economy is showing growth potential with the US activated and showing a slow but steady recovery, and it appears that shipping markets will be well prepared when relaunching themselves as it becomes clearer, according to experts, and this should happen by 2014 or 2015.
“There ought to be a rebound in global economic conditions and we will be positioned and balanced to supply and transport demand,” adds the executive.
Shipping companies have globally suffered significant losses in 2011 and 2012, and that has forced them to make adjustments to their fleets, in their capabilities, and the proportion of leased and owned vessels they use.
In the case of Chilean firms and specifically those based in the region, such as Compañia Sud Americana de Vapores (CSAV) and the Chilean Inter-Oceanic Navigation Company (CCNI) they maintained their fleets despite the crisis, and now have fleet renewal programs which will allow them to better overcome the difficulties.
In early April CSAV, a subsidiary of Quiņenco, controlled by the Luksic group, approved an investment plan of $570 million that will allow the acquisition of seven ships. The vessels will have a capacity of 9,300 TEUs and will be built by South Korea’s Samsung Heavy Industries (SHI). The company will receive the ships from the end of 2014 and they will replace some of the ships that are leased. With this, the shipping company will increase from 37% to 55% its own fleet.
Souce: The Bulletin Panama