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Shipping lines reach space sharing agreement to cut costs.

Two major international shipping lines--Empress de Navagacao Alianca Inc. and Columbus Lines--have formed a slot charter agreement to share vessels on their service from Argentina and Brazil to North America.

According to Captain Lucio Pimenta, owners representative of Alianca, the joint service, which started in July 1991, is a weekly service to North America where the companies split space on each others vessels utilizing two vessels from Alianca and three vessels from Columbus.

One of the main reasons the agreement was formed was to cut down costs, said Pimenta, a former Merchant Marine. He explained that this type of joint service was common thing.

"Business today is difficult," said Pimenta. "We must work together with other companies to reduce expenses." Through the joint service, the two companies share expenses and profit.

Pimenta stressed that each company has its own identity, and they do not share people. Shipping lines frequently have empty spots on their ships, explained Pimenta.

Working together is not a new concept for Alianca and Columbus Lines, as these two companies are currently working together in the European trade, said Jorg Zimmermann, assistant vice president, marketing and sales for Columbus Lines, North America. "We are familiar with each other," said Zimmermann.

Columbus Lines is a 100% subsidiary of Hamburg-Sud, the largest private German shipping line in business from Europe to South America. Hamburg-Sud was established in 1871, and in 1957, Columbus Line was founded in the United States.

"Coffee is a very important trade to Columbus Lines," said Zimmermann, "and it is always coming up from Brazil."

Today, some shipping lines are turning away from containers and going toward bulk shipping. "We carry only containers," said Pimenta. He explained that there are extra expenses concerning breakbulk, revealing that there is no change in the future for Alianca to switch to bulk shipments.

Alianca's major cargo is coffee, footwear and auto parts, and is currently looking to expand into tea. The company currently has contracts with General Foods and Folgers.

There are sailing every eight days, said Pimenta, who said the transport time for coffee from Brazil to the U.S. is about 16-17 days.

Alianca was founded in 1951 to support the maritime transportation of bulk cargos between Brazilian harbors, then extending to the ports of River Plate, Buenos Aires, and Montevideo.

In 1967 Alianca was appointed to join the traffic between the ports of Brazil, Argentina, Uruguay, as well as the European Atlantic Coast, including the British and Baltic Sea. This gave support to the Nordic countries, Poland, and the then U.S.S.R.
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Title Annotation:Empress de Navagacao Alianca Inc. and Columbus Line Inc. share freight space on runs from Argentina and Brazil to North America
Author:Boxman, Alyson R.
Publication:Tea & Coffee Trade Journal
Date:Jan 1, 1992
Previous Article:World tea economy reviewed in Rome tea meeting.
Next Article:I can't read tea leaves...but the future's just fine.

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