Chile’s Compania Sud Americana de Vapores (CSAV) had a net loss of US$1.25 billion in 2011, down from a profit of $171 million in 2010.
But CSAV, Latin America’s largest container shipping company, said that it succeeded in slashing its deficit in the last quarter following a restructuring plan that involves operational changes and a new capital infusion.
The box line said that it recorded losses of $145 million in the final quarter of 2011, the lowest in 2011 and a better showing over the second and third quarters, where it posted more than $300 million in losses each quarter.
CSAV attributed its dismal record last year to strong rivalry, weak demand, and steep oil prices that all pulled down its freight rates to loss-producing levels.
In response, CSAV hatched a restructuring plan that it said started to pay off in the fourth quarter of last year.
The plan calls for reducing containership capacity to half; by end of 2011, capacity has been cut by 33 percent.
Joint services were also strengthened, from 30 percent early last year to 90 percent at present, while owned ships in its fleet were increased to more than 30 percent from 9 percent in early 2011.
The carrier is also seeking a capital infusion of $1.2 billion to allow the spin-off of its terminal and tug unit SAAM into a separate company.
