HAPAG-LLOYD is making its foray into Brazil's growing feeder service and cabotage trade sectors through a newly established joint venture with the Brazilian shipping group Norsul, set to commence operations under Norcoast in the upcoming year, reports New York's Journal of Commerce.

The entrance of Hapag-Lloyd into this arena has been well-received by forwarders operating in Brazil.

They expect this development will enhance options for forwarders and shippers, potentially leading to more competitive freight rates.

Hapag-Lloyd is the final major European-based container line to venture into Brazil's domestic container market.

This announcement coincides with the relaxation of Brazil's previously stringent cabotage regulations, further opening up opportunities in maritime trade.

"I believe it will be beneficial for forwarders and cargo owners, as it is a new alternative for coastal shipments," said De Paulis Logistics & SCM Eireli managing director Fabrizio De Paulis.

"There will be more competition between carriers, reducing freight rates."