Source:PR News Service

The future of Argentina's main shipping line, Maruba is in the balance as debt continues to pile up and charter renegotiations on a number of vessels hired

from German shipowners are in urgent need to be agreed But, according to Maruba senior executives today, the financial concerns being talked about here

are far below those of other lines in the big name league, and although the amounts are not confirmed exactly, they are unlikely to go beyond US$30m

Senior executives at Maruba spoke at length to PR News Service today, over continuing market talk that Maruba could be about to file for administration,

and eventually disappear from the liner shipping market Such talk it would seem, is far wide of the truth, and the double-digit debt level is certainly well

below that of some other lines who are successfully managing to pull through the market downturn with "aid" from various sources

Maruba's services are mostly limited to Europe/South America and Asia/South America, but the line is a vessel sharing partner with others as 'CMA CGM

and China Shipping, and thus its market status is shared at a top level on the North/South routes In the vessel operations sector, and on a positive note, the line presently runs a fleet of around 20 chartered vessels in the 1,000/3,000 teu league, but by the end of this year, that number will be reduced to just eleven,

as vessels are redelivered and hire costs cut back Successful negotiations have taken place with a number of shipowners, particularly in Germany, o

ver the lengthening of charter periods and consequently a reduction in daily rates, and thus, there is nothing alarmingly new in that sector

But the big worrying concern is that there are deals on three vessels including the 2,100 teu Maruba Asia and Maruba Africa, on time charter from

German shipowner, NSB Niederelbe, that have yet to be resolved as far as as contract renegotiations are concerned According to senior executives today

at Maruba, this "is a major concern", and the reaction from NSB over this possible renegotiation is "certainly negative at the moment" say Maruba sources

Maruba also owes money to the container leasing sector, but the line is moving towards settling payments there, with at least half of a US$1m outstanding

bill already paid off

The container leasing bill is just part of a Maruba pay back programme that has also included a US$2m settlement with the Oetker Group in recent days over

a cargo dispute with one vessel, the 3,534 teu Maruba Cristina, on charter from Oetker and deployed on the Asia/South Africa/ECSA trade Maruba's overall

workforce has been cut in recent months, from around 300 to 200 staff, and while a 100 job redundancies may not seem huge in this business, a third of the

workforce is quite alarming

But like South American compatriots, CSAV and CCNI, Maruba's way ahead is in the hands of others, and in its case, the banks and/or the Argentinian

government - in the next two weeks, the future of Maruba will be decided A debt restructuring programme is in being discussed with the banks, and

importantly the Argentinian government has been approached for "support", which could see Maruba's shareholding change dramatically, even to the

extend that it will become wholly government-owned

In summary, Maruba certainly has debt problems, but they are relatively small compared to some other lines, and the line is a proud name that may emerge government-owned, that could emerge thanks to a bank bale out, If it does not, then names such as CMA CGM and China Shipping will be frantically

searching for someone to fill the gap left to cover the South America market on their joint services, and big names like Maersk and Hamburg-Sud

will be eagerly eyeing the trade potential of another niche market line that did not quite make it