Unlisted container shipping group Hapag-Lloyd's planned merger with rival Hamburg-Sued has been cancelled due to disagreement on terms, the latter's owners said.

According to Albert-Ballin Consortium of investors at Hapag-Lloyd, the Oetker family behind Hamburg-Sued had requested for an end to merger talks.

Earlier this month, Hapag-Lloyd reported higher losses for last year resulting from expected low volumes of cargoes. The losses were attributed to higher energy costs and persistent global financial crisis, forcing the group to call off the delivery of new ships.

Klaus-Michael Kuehne, owner of Hapag-Lloyd, said in a statement that he would force the company to go public on its own if they reach no agreement with the Oetker family.

 The largest container shipping companies in Germany, Hapag-Lloyd and Hamburg-Sued announced in December last year that they are looking forward for a merger to build a global company in a bid to survive the sector's 4-year slump.