Chilean shipper Compania Sud Americana de Vapores on Wednesday said that it was in merger talks with German container shipping company Hapag-Lloyd. According to Reuters, Vapores has faced steep losses in the recent years. The shipping company has grappled with lower shipping rates, high fuel prices and expensive leases, the report adde.

Vapores said in a statement that it is in talks with diverse actors in the industry for a possible tie-up in the container-shipping business.

Reuters, citing a report by German news daily Die Welt, said top executives of Vapores and Hapag-Lloyd met two weekends ago in Miami. The said executives reportedly discussed a number of options, including a merger. Talks between the two companies, however, were at an early stage, the report said. 

Reuters said that under the stewardship of the Luksic family, Vapores spun off its SAAM storage and logistics unit in 2012. It had bought ships to replace those that were leased as part of a plan to reverse losses. 

The Luksic family is the richest household in Chile. They became Vapores' majority shareholders after the company completed a USD1.2 billion capital increase in 2012, the report said.