South Africa rejects merger between Japan’s ‘Big 3′

The Competition Commission of South Africa said a merger between NYK, MOL and “K” Line would encourage anti-competitive behavior in the liner markets and the car carrier sector.    The Competition Commission of South Africa has prohibited a proposed merger between the container liner shipping businesses of Japan’s “Big 3” ocean carriers – Nippon Yusen Kabushiki Kaisha (NYK), Mitsui O.S.K. Lines, Ltd. (MOL) and Kawasaki Kisen Kaisha, Ltd. (“K” Line).
   The commission said a merger between the carriers would encourage anti-competitive behavior in the liner markets and the car carrier sector.
   The carriers said back in May they planned to operate their joint venture under the trade name “Ocean Network Express,” and originally announced their intentions to integrate their container shipping businesses on Oct. 31, 2016.
   According to ocean carrier schedule and capacity database BlueWater Reporting’s Carrier Ranking Report, based on operating fleet capacity, NYK is the ninth largest carrier in the world with 588,711 TEUs, while MOL comes in at 11th with 536,820 TEUs and “K” Line takes 14th place with 354,616 TEUs.
   London-based shipping research and consulting firm Drewry said earlier this week that the Ocean Network Express would be the sixth largest container carrier in the world once it commences operations.