Chile's Compania Sud Americana de Vapores (CSAV), the world's 11th biggest carrier, has received a US$1.2-billion injection from shareholders to strengthen its books after it warned of "very negative" earnings for the full year, reports Shipping Gazette .
CSAV said it will use the funds to finance its US$1-bn order of nine new ships, which the company says it is vital to reduce the volatility of the results and improve its competitiveness.
The carrier posted a net loss of US$525-million for the first half and is expected to suffer a big third quarter loss too, despite measures to cut costs in April and reduce exposure to loss-making routes, reports Alphaliner.
It said the shipping line has reduced its operational capacity by 28% since March and has returned or sublet most of its excess tonnage in the last six months.
The carrier has already taken delivery of two 6 500-TEU ships and two 8 000-TEU vessels with five more 8 000-TEU ships due to arrive over the next 10-months.
Alphaliner added that the seven 8 000-TEU vessels have become surplus to its requirements and have been chartered to Maersk Line.
