Chilean shipper Compania Sud Americana de Vapores or CSAV is negotiating joint shipping operations with French-owned CMA-CGM and Mediterranean Shipping Company or MSC, reported Dow Jones Newswires.

Vapores, which is Latin America's largest shipping company in terms of revenue, has seen its finances weighed down by hefty ship and container leasing fees, as well as rising international crude oil prices.

The Chilean shipper recently temporarily suspended its so-called ASIAM service, which operates between the Indian sub-continent, Southeast Asia, China and the US western seaboard.

Vapores is in talks to jointly-operate its Asia to Africa, Brazil and Mediterranean route; South American Pacific coast to northern Europe route; and South American eastern seaboard to Middle East route.

"If negotiations with the shippers are successful, this will have a significant impact on how Vapores' services are structured," the Chilean company said.

Earlier this year, the local Luksic family, reportedly Chile's richest, purchased an 18 percent stake in Vapores and brought its business-savvy managerial style to the company.

Also earlier this year, Vapores shareholders approved a US$1 billion capital increase in two tranches.

Source: CargonewsAsia.