Monday, July 10, 2017

Container Shipping Lines Announce Full Merger Plans

Ocean Network Expresses its Structure and Strategy
Shipping News Feature
JAPAN – WORLDWIDE – So what's the difference between a vessel sharing agreement, a container freight alliance and an integrated box shipping business? The plethora of different arrangements usually lead to a blank when it comes to taking a look at the web pedigree of the latest flush of cargo transport cooperation's, however in the case of the formative ONE Network, the Ocean Network Express, things are much simplified, particularly for a humble trade journalist, as the three companies involved have actually already established an independent website.

Indeed ONE is a very different animal, as explained in earlier articles, this is a new holding company, responsible for the selected assets of the three major Japanese box lines namely Kawasaki Kisen Kaisha (K Line), Mitsui O.S.K. Lines (MOL), and Nippon Yusen Kabushiki Kaisha (NYK), the ‘integrated business’ model mentioned above.

ONE will consist of a Japanese holding company overseeing the operating company, Ocean Network Express Pte Ltd, based in Singapore which itself will manage five separate ONE divisions; East Asia in (Hong Kong); Singapore; Europe (UK); North America (US) and Latin America (Brazil).

The new outfit claims 6th spot in terms of volume of TEU carrying capability with approximately 240 vessels under its charge including 31 Ultra Large Container Ships (ULCs) up to the world’s largest 20,000 TEU class, and full details of company structure and leading executives can be seen here.

It may however still not be plain sailing for the three Japanese carriers. Whilst Singapore (naturally) and the EU have approved the merger, just last month South Africa took a different view, and doubtless the thought of a rising ocean power in the East will not ensure plaudits from certain quarters in the US.