Japan’s three major container shipping companies Kawasaki Kisen Kaisha (K Line), Mitsui O.S.K. Lines (MOL) and Nippon Yusen Kabushiki Kaisha (NYK) have established a holding and operating company for the integration of their container shipping businesses, including worldwide terminal operation businesses outside Japan.

The new Tokyo-based holding company will be known as Ocean Network Express Holdings and the Singapore-based operating company has been named Ocean Network Express.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The parties noted that they expect to complete the approval process for compliance with competition law before the service commencement date of 1 April next year.

NYK noted that the growth in demand for cargo shipping has slowed over the last several years, while the supply of tonnage has steadily increased due to a large number of newly delivered vessels.

This has deteriorated the balance of supply and demand within the industry.

“The three Japanese companies have decided to combine their businesses due to low oil prices, sluggish cargo demand, and over-supply of trade capacity.”

The three Japanese companies have decided to combine their businesses due to low oil prices, sluggish cargo demand, and over-supply of trade capacity, which has led to container freight rates reaching historic lows.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The firms have made efforts to cut costs and restructure their business, but found that there are limits to what can be accomplished individually.

Ocean Network Express will operate approximately 240 vessels, including 31 ultra-large container ships such as the world’s largest 20,000TEU class.

The combined entity will aim to provide the world’s highest level of service and exceed customer needs by developing an extensive network spanning 90 countries.

Image: NYK Line headquarters in the Yusen Building, Japan. Photo: courtesy of Rs1421.