Maruba exits U.S./ECSA loop as subprime fallout kicks in

Buenos Aries, Argentina-based Maruba Lines will in March leave the U.S. East Coast/East Coast South America Usatlan service of Compania Sud Americana de Vapores (CSAV) and its subsidiary Libra.

As a result of the impact of the subprime crisis in the U.S. housing industry, cargo volumes and rates for Brazilian exports have taken a downward track since the last quarter of 2007, said Maruba's U.S. agency Alpha Shipping in a statement. As a result of this crisis and the immediate forecast that conditions are not likely to improve during the 2008 year, the management of Maruba Lines has given notice that the company will withdraw from the joint Usatlan service.

The last southbound sailing with Maruba cargo will be the Rio Lontue departing from New York on March 10. Maruba's last northbound sailing will be the Libra Nitoroi, departing Sao Francisco on March 12.

The Usatlan uses five ships averaging 2,500 TEUs on a rotation of New York, Baltimore, Norfolk, Charleston, Sao Francisco do Sul, Santos, Rio de Janeiro, Salvador, Puerto Cabello and New York. Hamburg Sud and its Brazilian affiliate Alianca takes space on the service, as does French line CMA CGM.

Maruba will continue to offer weekly northbound service from the East Coast of South America to Miami and from Port Everglades to the northern zone of Central America.

The company will continue to evaluate the trade prospects from South America on a continuing basis, Alpha Shipping said. 

Source:American Shipper