The three major box shipping companies of Japan have announced the trade name of their new merged entity and disclosed plans to launch the joint venture (JV) by the second quarter of next year.
Kawasaki Kisen Kaisha, Mitsui O.S.K. Lines, and Nippon Yusen Kabushiki Kaisha said the new JV will be named “Ocean Network Express” and integrate their container shipping businesses, resulting in a combined fleet size of 1.4 million TEUs and a service network spanning 90 countries.
The three firms plan to establish a holding company in Tokyo, Japan, and set up global headquarters in Singapore. In addition, regional headquarters will be set up in Singapore, Hong Kong, United Kingdom (London), United States (Richmond, VA), and Brazil (Sao Paulo).
Since the merger was initially announced on October 31, 2016, the three companies have been moving to realize the founding of the new JV.
“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,” said an official statement from the carriers.
“The establishment of new JV will officially be announced once all anti-trust reviews are completed. The service commencement date for Ocean Network Express is April 1, 2018,” the release said.
Hapag-Lloyd to cut 11,000 jobs
German ocean box liner Hapag-Lloyd has confirmed reports that it plans to reduce its land-based labor force by up to 12% following the completion of its merger with Kuwait-based rival United Arab Shipping Company (UASC).
A spokesman at Hapag-Lloyd’s head office in Hamburg said that about 11,000 workers would be let go over a period of 1-1/2 to two years in the wake of the merger.
Hapag-Lloyd and UASC completed their merger on May 24, the union strengthening Hapag-Lloyd’s position as the fifth largest liner shipping company in the world.
The two parties will begin consolidating their operations in about eight weeks and expect to complete the process by the end of the third quarter.
Staff levels would not be cut before then, the spokesman said.
No details were given as to which jobs would be removed, but some 2,100 sea-based jobs would reportedly be retained so vessels could continue to travel.
Photo: AlfvanBeem
