German shipping group Hapag-Lloyd AG's chairman said rival Hamburg-Sued should join merger talks between his company and Chile's Vapores.

According to Reuters, Hapag-Lloyd earlier this month said it was in talks to merge with smaller Chilean shipper Compania Sud Americana de Vapores SA. An agreement had yet to be reached. Hapag-Lloyd is the world's No. 5 container shipping company by capacity.

Shipping groups have been struggling through the worst slump on record. The weak global economy, oversupply of vessels and low freight rates highlight the benefits of consolidation in the sector, the report said.

Hapag-Lloyd has been burdened by €2.35 billion ($3.2 billion) of net debt and a nine-month loss of €56 million. It had already held talks with Hamburg-Sued last year, but the parties were unable to agree on terms, Reuters said.

Hapag-Lloyd chairman Juergen Weber told German news daily Hamburger Abendblatt that he hoped his company's talks with Vapores would be a warning and motivation for Hamburg-Sued's owner to rekindle talks. Hamburg-Sued is owned by the Oetker family, the report said.