THREE IN “ONE”: JAPANESE OCEAN NETWORK EXPRESS HAS STARTED OPERATIN
On the 1st of April 2018, the container shipping business of Japanese liner shipping companies K Line, MOL and NYK has officially started to operate under Ocean Network Express (ONE) which is a major new global container shipping company.
According to analysts of Alphaliner, the merger integrates K Line, MOL and NYK’s container shipping businesses, including global terminals (not in Japan), propelling the new entity into sixth place in the global rankings with a capacity of around 1.498m Teu on 234 ships and an approximate 6.8% market share.
After the merger, ONE is comfortably above Evergreen’s 1.1m TEU capacity and just behind Hapag-Lloyd’s 1.56m Teu capacity. However, ONE line ordered ships that total capacity is 187,000 TEU, thus ONE might leapfrog Hapag-Lloyd in the forthcoming years.
The largest carrier of the trio, NYK, with a fleet capacity of 592,000 TEU, has a 38% stake in ONE, with K line (358,000 teu) and MOL (491,000 teu) each having 31%.
According to reports, the trio says that they expect to save ¥50bn by the end of following fiscal year and thereafter ¥110bn each year.
Jeremy Nixon, CEO of the ONE, explained ONE’s strategy in last interview and said ‘’Realistically we do not expect to go toe to toe with the top four in terms of pure scale and global market share’’.
He explained main company ideology and said ‘’Where possible we will take a differentiated service approach and ensure we have a strong focus on yield management and innovation whilst also iming to maintain a strong balance sheet.’’
While the holding company will remain in Japan, the global Headquarter of ONE will be in Singapore, supported by regional headquarters in Hong Kong, the UK (London), the US (Richmond) and Brazil (Sao Paulo).