Brazil’s Chamber of Foreign Trade (CAMEX) has decided not to renew it’s exclusionary maritime shipping agreement with Chile, the American Shipper reports.
The arrangement between the countries currently gives two companies – Alianca, the Brazilian unit of Hamburg Sud, which is now owned by Maersk Line, and CSAV, the Chilean subsidiary of Hapag Lloyd AG – exclusive shipping rights between the two South American countries.
The agreement, which was established in 1975, expires in January 2020. After that point, the transport of goods between Chile and Brazil could be carried out on ships of any flag, which is expected to increase competition and reduce costs of shipping goods between the two nations.
A study by the Institute for Applied Economic Research, a Brazil-based economic think tank, previously found that the maritime pact ads five percent to the final price of products in both countries.
In an action related to dropping the exclusionary maritime shipping agreement, CAMEX said it will extend waivers for roll-on, roll-off and breakbulk ships to one year from the current period of one month.