Ocean Network Express will be sixth largest container carrier : Drewry

Posted by Daily Shipping Times on 22-06-2017        Tweet

LONDON: Once the Ocean Network Express (ONE), a merged containership entity between Japan’s three largest ocean carriers, commences operations, it will be the world’s sixth largest carrier measured by containership fleet, according to a recent report from Drewry.

The London-based maritime consultant projects the ONE will sport a fleet with close to 1.4 million TEUs of capacity, giving it approximately a 7 percent marketshare based on current global fleet and placing it firmly behind Maersk Line, Mediterranean Shipping Co. (MSC), CMA CGM, COSCO and Hapag-Lloyd.

All recent merger and acquisition deals, including CMA CGM’s impending Q4 2017 purchase of Mercosul Line from Maersk, are factored in to this ranking, Drewry said.

ONE is scheduled to commence April 1, 2018, pending anti-trust reviews, and will include Kawasaki Kisen Kaisha, Ltd. (“K” Line), Mitsui O.S.K. Lines, Ltd. (MOL), and Nippon Yusen Kabushiki Kaisha (NYK). The joint venture will integrate the three companies’ container shipping businesses, including worldwide terminal operations businesses, but excluding those in Japan, according to the carriers.

A holding company will be established in Tokyo, the Global Headquarters will be in Singapore, and regional offices will be located in Hong Kong; London; Richmond, Va. and Sao Paulo, Brazil.

All three carriers are members of “THE” Alliance, a vessel sharing agreement on major East-West trades that also includes Hapag-Lloyd, which finalized its merger with United Arab Shipping Company (UASC) in May, and Yang Ming.

NYK will be the largest shareholder with 38 percent, while MOL and “K” Line will each hold a 31 percent share.