[020617.EN.BIZ] Japan's 'Big 3' to Operate Under Trade Name of 'Ocean Network Express'

JAPAN's three major shipping companies - "K" Line, MOL, and NYK - will operate their joint venture under the trade name "Ocean Network Express," the carriers said in a joint statement.

The new joint venture will integrate the three companies' container shipping businesses, including their worldwide terminal operations businesses, excluding those in Japan, reports American Shipper.

The Ocean Network Express, which some analysts and media outlets are already calling "ONE" for short, will commence operation on April 1, 2018. The establishment of the new joint venture will officially be announced after all anti-trust reviews are finalised. The three carriers announced their intentions to integrate their container shipping businesses on October 31, 2016.

The establishment of a holding company is planned in Japan, while an operating company is planned to be incorporated in Singapore. Regional headquarters of the operating company will be set up in Singapore; Hong Kong; London; Richmond, Virginia; and Sao Paulo, Brazil.

NYK's container business is currently based in Singapore, while "K" Line's US headquarters is in Richmond, Virginia. The three carriers have already established a new website for their joint venture.

All three carriers are members of "THE" Alliance, a vessel sharing agreement on major east-west trades that also includes Hapag-Lloyd of Germany, which finalised its merger with United Arab Shipping Company (UASC) last week, and Yang Ming of Taiwan.

According to ocean carrier schedule and capacity database BlueWater Reporting's Carrier Ranking Report, based on operating fleet capacity, NYK is the eighth largest carrier in the world with 594,699 TEU, while MOL comes in at 11th with 540,942 TEU and "K" Line takes 14th place with 353,220 TEU.

Source : HKSG.