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Drewry: Much to gain from German-Chilean merger

German Hapag-Lloyd and Chilean CSAV stand to reap large benefits from a merger. The question is whether the two carriers can find a financial solution.

Photo: Hapag-Lloyd

German Hapag-Lloyd and Chilean CSAV have much to gain on an operational level from a merger, and both parties could achieve significant economies of scale from combining their routes of transport to and from South America. However, it will likely be much more difficult to find a financial solution that satisfies both parties, says analysts Drewry.

CSAV is a moderate player in South America, where Hapag-Lloyd on the other hand is much smaller going by capacity. By merging the two companies' cargo volumes the carriers could achieve more control of the agenda, potentially through collaborating with other container carriers.

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