Compañía Sud Americana de Vapores (CSAV), part of the Luksic group, reported profits of US$ 175.7 million for the first nine months of this year, down 10% from 2024. The third quarter saw an even steeper 86% decline to just US$ 46 million. Lower freight rates and higher operating costs drove the downturn.
CSAV, operating through its stake in German firm Hapag-Lloyd AG, attributed the results to several challenges. Hapag-Lloyd's contribution to CSAV's earnings was US$ 273.3 million, a 49% drop from September 2024, mainly due to lower freight rates and rising costs. This was partly offset by reduced tax expenses from lower dividends from Germany, adding US$ 181.2 million, and a positive exchange difference of US$ 77.1 million.
Hapag-Lloyd increased its container volume by 9%, exceeding the market average of 4.1%, but average freight rates fell 5%. The cost structure was affected by operational issues at ports, ongoing ship diversions around the Cape of Good Hope, and initial costs of the new Gemini network, which diminished operating results. The Red Sea conflict continues, keeping routes diverted.
Hapag-Lloyd's EBIT reached US$ 905 million for the period, down 53%. CSAV's general manager, Óscar Hasbún, stated: “The year has been marked by high volatility, with ongoing geopolitical conflicts, developing new tariff policies, rising costs, and generally lower rates. In this challenging context, the new Gemini alliance has shown good results, with historically high reliability indices well above industry averages”.
For 2025, Hapag-Lloyd adjusted its forecasts: EBITDA is projected between US$ 3,100 and US$ 3,600 million, compared to the previous range of US$ 2,800 to US$ 3,800 million; EBIT between US$ 600 and US$ 1,100 million, versus the prior US$ 250 to US$ 1,250 million. CSAV holds 30% of Hapag-Lloyd's shares and is part of the controlling pact.