Tuesday, April 3, 2018

Japanese Shipping Lines Fight Overcapacity in the Ocean Freight Container Market

ONE Alliance Sets Sail This Month
Shipping News Feature
JAPAN – WORLDWIDE – Ocean Network Express (ONE), the result of an integration of the container freight operation of three Japanese shipping lines, Kawasaki Kisen Kaisha (K Line), Mitsui O.S.K. Lines (MOL), and Nippon Yusen Kabushiki Kaisha (NYK), has announced the commencement of its shipping operations on April 1. Having initially announced plans to attempt to secure the future of the Japanese container market in October 2016, following the fallout from the bankruptcy of South Korean rival, Hanjin two months prior, the three Japanese lines have invested a total of $3 billion into the joint venture, with the hope of addressing the problem of overcapacity within the container shipping sector.

The integration lets ONE, clearly nobody considered the impossibility of Googling such a title, as members of another grouping also demonstrating a bad choice for internet searches, the THE Alliance, incorporate best practices from the triumvirate and to take advantage of their combined 1,440,000 TEU fleet size with around 230 vessel, as the combined entity now known as ONE becomes the world’s sixth largest container shipping company in terms of TEU. Supported by a worldwide, globally-connected organisation, it offers 85 service loops and a comprehensive network linking more than 200 of the world’s major ports.

The start of container shipping operations is in line with the initial schedule laid out when the company was established on July 7, 2017. MOL and K Line each hold 31% shares with NYK receiving the remaining 38%.