New Japanese Joint Venture
Following an initial announcement in October last year, Japan’s big three carriers Kawasaki Kisen Kaisha Ltd (K Line), Mitsui O.S.K. Lines Ltd (MOL), and Nippon Yusen Kabushiki Kaisha (NYK) have announced today (Wednesday 31 May) that their new joint venture will operate under the tradename ‘Ocean Network Express’; with a service commencement date set for April 1 2018.
The establishment of this new joint venture which will integrate the three companies’ container shipping businesses, including worldwide terminal operation businesses. They plan to establish a holding company based in Japan and an operating company incorporated in Singapore. The operating company will also have regional headquarters set up in Singapore, Hong Kong, London (UK), Richmond (USA), and Sao Paulo (Brazil).
In March this year, the Competition Commission of Singapore (CCS) gave the nod to the proposed joint venture of the three Japanese lines. “The move will allow Ocean Network Express to better meet customers’ needs by providing high quality, competitive services through the consolidation and enhancement of the three companies’ global network and service structures,” the joint statement said.
Uniserve Seafreight Director Steve Ireland commented: “Uniserve have always been big supporters of the Japanese carriers for the past 30 years, and see this as a positive move for our industry. We are looking forward to supporting the new Ocean Network Alliance and moving forward together in a stronger partnership”.
Following the first announcement of the container shipping business merger back in October 2016, the three carriers have been progressing towards their target of establishing the new joint venture. They said at the time that the decision to integrate for a joint venture came on the back of low oil prices, oversupply of trade capacity, sluggish cargo demand and container freight rates at historic lows.
The official announcement of Ocean Network Express is set to be announced once all anti-trust reviews are completed. For more information about the new joint venture, a new website has been launched at oceannetworkexpress.com.
For further information about Uniserve’s international services and supply chain solutions please email info@ugroup.co.uk or call 01708 259400.
More News…..
Uniserve’s Market Update for January Now Available
Uniserve's monthly market snapshot providing international freight, trade and supply chain insights and forecasts for the weeks ahead. Uniserve has just released the January market update, providing key insights and forecasts for global supply chains for the...
2025 Carrier Alliance Infographic
What is a carrier alliance and why do they matter? A carrier alliance is a strategic partnership between shipping lines that collaborate to share vessels, routes, and resources. These alliances are essential in the global logistics industry, as they improve...
Uniserve Netherlands appoints Lodewijk Bottelier as new CEO
Uniserve is delighted to announce the appointment of Lodewijk Bottelier as Uniserve Netherland’s new Chief Executive Officer. Lodewijk brings a wealth of experience and a stellar reputation in the industry, and we are excited about the successes his leadership will...
Follow Us: