Chilean shipper Compania Sud Americana de Vapores (VAPORES.SN) signed an agreement for joint-shipping operations with Mediterranean Shipping Company SA, or MSC, Vapores said, Dow Jones reports.
Vapores, which is Latin America's largest shipping company in terms of revenue, has been weighed down by hefty ship and container leasing fees, as well as rising international oil prices.
Vapores and MSC will jointly operate service routes between northern Europe and South America's west coast; Asia and South Africa; South America's east coast and the Middle East; and South Africa, the Middle East and India.
"This is a sign of Vapores' positive view toward the future economic growth and development of these important markets...and this agreement will expand our coverage in these markets, improving transit times and frequency allowing us to provide a better service to our customers," Vapores said in a statement.
Vapores was in talks with MSC and French privately-owned CMA-CGM for the joint-shipping operations.
The Chilean shipper recently temporarily suspended its so-called ASIAM service operating between the Indian sub-continent, South East Asia, China and the U.S. western seaboard because of rising fuel costs.
Earlier this year, the local Luksic family, reportedly Chile's richest, purchased an 18% stake in Vapores and brought its business-savvy managerial style to the company.
Also earlier this year, Vapores shareholders approved a $1.0 billion capital increase in two installments.
Vapores, which is Latin America's largest shipping company in terms of revenue, has been weighed down by hefty ship and container leasing fees, as well as rising international oil prices.
Vapores and MSC will jointly operate service routes between northern Europe and South America's west coast; Asia and South Africa; South America's east coast and the Middle East; and South Africa, the Middle East and India.
"This is a sign of Vapores' positive view toward the future economic growth and development of these important markets...and this agreement will expand our coverage in these markets, improving transit times and frequency allowing us to provide a better service to our customers," Vapores said in a statement.
Vapores was in talks with MSC and French privately-owned CMA-CGM for the joint-shipping operations.
The Chilean shipper recently temporarily suspended its so-called ASIAM service operating between the Indian sub-continent, South East Asia, China and the U.S. western seaboard because of rising fuel costs.
Earlier this year, the local Luksic family, reportedly Chile's richest, purchased an 18% stake in Vapores and brought its business-savvy managerial style to the company.
Also earlier this year, Vapores shareholders approved a $1.0 billion capital increase in two installments.