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Japan’s big three unveil Ocean Network Express, name Singapore as operating base

Japan’s big three unveil Ocean Network Express, name Singapore as operating base
The new joint venture container shipping entity of Japan’s big three carriers will operate under the tradename Ocean Network Express with its holding company based in Japan and an operating company incorporated in Singapore.

The three carriers, K Line, MOL and NYK, made a joint announcement on Wednesday updating their joint venture trade name and location of their merged container shipping business.

Singapore will also be the regional headquarters of the operating company, in addition to offices in Hong Kong, London in the UK, Richmond in the US and Sao Paulo in 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.

Following the first announcement of the container shipping business merger back in October 2016, the three companies have been progressing towards their target of establishing the merged entity with service commencement date scheduled on 1 April 2018.

K Line, MOL and NYK said back then that the decision to integrate came on the back of low oil prices, sluggish cargo demand, oversupply of trade capacity, and container freight rates at historic lows.