News Content
World's newest and sixth-largest box line officially established in Tokyo
JAPAN's "K" Line and its partners continue to make progress toward the establishment of One Network Express.
The world's sixth-largest liner shipping company was officially established in Tokyo with One Network Express (ONE) bringing together the container divisions of Japan's three major carriers in a joint venture that will start operating in April 2018.
"K" Line, MOL, and NYK established a holding company in Tokyo and an operating company in Singapore. ONE has the world's sixth-largest fleet, with 250 ships and a capacity of 1.38 million TEU, and the joint venture integrates the three companies' container shipping businesses, including their terminal operation businesses outside Japan.
The carriers had planned to set up the joint venture by July 1, but were delayed by regulatory setbacks. However, on July 3 the lines said in a statement that they had received all the approvals necessary to comply with local competition laws in regions where compliance was required. The only country to reject the liner shipping merger proposal was South Africa, but the carriers plan to appeal the ruling.
The US Federal Maritime Commission voted down the carriers' proposed "tripartite agreement," saying the Shipping Act of 1984 did not provide them authority to review and approve mergers, but the ONE carriers expect to secure permission to operate in the US by the time the new company starts operations in April next year.
The shareholding structure will have NYK holding 38 per cent and "K" Line and MOL each holding 31 per cent. MOL, NYK, and "K" Line are currently individual members of the vessel sharing agreement with Hapag-Lloyd-UASC and Yang Ming Line. The carriers have said they expect higher rates and greater container volume to come from the membership with THE Alliance, according to IHS Media.
The world's sixth-largest liner shipping company was officially established in Tokyo with One Network Express (ONE) bringing together the container divisions of Japan's three major carriers in a joint venture that will start operating in April 2018.
"K" Line, MOL, and NYK established a holding company in Tokyo and an operating company in Singapore. ONE has the world's sixth-largest fleet, with 250 ships and a capacity of 1.38 million TEU, and the joint venture integrates the three companies' container shipping businesses, including their terminal operation businesses outside Japan.
The carriers had planned to set up the joint venture by July 1, but were delayed by regulatory setbacks. However, on July 3 the lines said in a statement that they had received all the approvals necessary to comply with local competition laws in regions where compliance was required. The only country to reject the liner shipping merger proposal was South Africa, but the carriers plan to appeal the ruling.
The US Federal Maritime Commission voted down the carriers' proposed "tripartite agreement," saying the Shipping Act of 1984 did not provide them authority to review and approve mergers, but the ONE carriers expect to secure permission to operate in the US by the time the new company starts operations in April next year.
The shareholding structure will have NYK holding 38 per cent and "K" Line and MOL each holding 31 per cent. MOL, NYK, and "K" Line are currently individual members of the vessel sharing agreement with Hapag-Lloyd-UASC and Yang Ming Line. The carriers have said they expect higher rates and greater container volume to come from the membership with THE Alliance, according to IHS Media.
Latest News
- For the first time, tianjin Port realized the whole process of dock operati...
- From January to August, piracy incidents in Asia increased by 38%!The situa...
- Quasi-conference TSA closes as role redundant in mega merger world
- Singapore says TPP, born again as CPTPP, is now headed for adoption
- Antwerp posts 5th record year with boxes up 4.3pc to 10 million TEU
- Savannah lifts record 4 million TEU in '17 as it deepens port
