Three Japanese Shipping Giants to Integrate Container Business

Nippon Yusen Kaisha (NYK), Mitsui O.S.K. Lines, Ltd. (MOL) and Kawasaki Kisen Kaisha, Ltd. (“K” Line) will integrate conventional container business by establishing a new joint-venture company, of which NYK will hold a 38% stake, MOL and “K” Line will each hold 31%, Bloomberg News reported.


The joint-venture company, the world’s sixth largest container company is scheduled to be in operation from April, 2018. The integrated volume will account for about 7% of the global market with an expected annual profit at about about 110 billion JPY.


In recent years, container shipments decreased significantly plagued by the global economic downturn, while new ships are continuing to join in, resulting in a serious oversupply situation globally. Although at present, the liner shipping is still able to maintain growing, but extremely uneasy. In response to the crisis, major shipping companies began industrial restructuring through merges, acquisitions, etc. Therefore, the three major liner companies in Japan decided to integrate its container business on the basis of equality and mutual benefit, to enhance operational efficiency and strengthen competitiveness.