zoomImage courtesy: K Line

Japan’s three major container shipping companies established a holding and operating company on July 7 as they move toward the integration of their container shipping businesses.

Nippon Yusen Kabushiki Kaisha (NYK), Mitsui O.S.K. Lines (MOL), and Kawasaki Kisen Kaisha (K Line) was planning to set up the joint venture company at the strt of July, however, they pushed the establishment date despite claiming to have received all necessary approvals for compliance with local competition laws.

The JV company, which includes worldwide terminal operation businesses outside Japan, received the approvals in regions and countries where compliance is required for the establishment of Ocean Network Express (ONE).

In late June, the Republic of South Africa’s competition commission decided to block the trio’s proposed merger saying that the structure of the container liner shipping market “is conducive to coordination based on previous collusive conduct in the container liner market in other parts of the world.”

The companies earlier said they expect to complete the approval process for compliance with competition law before the service commencement date of April 1, 2018.

“Overall, there is no impact on the three companies’ integration plans for the new container shipping business, and the service commencement date for the new company is likewise unchanged from April 1, 2018,” MOL informed.