Japan’s “Big 3” ocean carriers – Kawasaki Kisen Kaisha (“K” Line), Nippon Yusen Kabushiki Kaisha (NYK), and Mitsui O.S.K. Lines (MOL) – are scheduled to set sail as a single joint venture shipping company starting April 1st as ONE, Ocean Network Express Co. Ltd. The carriers intend to integrate their shipping businesses globally, including worldwide terminal operations, with the exception of their home country of Japan. The holding company that will oversee the new network’s organizational governance will be based in Japan, while the container line division will be managed out of Singapore. Regional headquarters are also being set up in Brazil, Hong Kong, Singapore, the United Kingdom (London), and the United States (Virginia).

The three carriers have estimated that the integration of their container shipping operations could reduce costs by a combined 50 billion yen ($449 million dollars) for the fiscal year ending in March 2019. Over the next three years, ONE’s annual savings are expected to reach 110 billion yen ($987 million dollars) due to streamlining efforts, such as consolidating bases and trimming payroll. Subsidiaries and shipping agencies will also be combined or scrapped.

Source: americanshipper.com