Ocean Network Express finalizes all required regulatory approvals

The new joint venture company between Japan’s “Big 3” shipping lines is slated to commence operations April 1, operating as the sixth largest entity in the container shipping market.    Kawasaki Kisen Kaisha, Ltd. (“K” Line), Mitsui O.S.K. Lines, Ltd. (MOL) and Nippon Yusen Kabushiki Kaisha (NYK) confirmed Thursday that their new joint venture company, Ocean Network Express (ONE), has received all necessary merger approvals from local competition authorities in regions and countries where such approvals are required for the launch of service.
   The new carrier, which was announced in May 2017 as a joint venture between Japan’s so-called “Big 3” shipping lines, was formally established in July 2017. As of the beginning of that month, the joint venture had completed the approval process in all regions and countries except South Africa.
   “Following continued negotiations with the competition authority in that country, the J/V (joint venture) company today obtained approval with conditions requiring measures regarding competition law compliance,” the three carriers announced in a joint statement.
   With all regulatory requirements fulfilled, the service commencement schedule for the new company remains intact, with operations slated to begin April 1, the carriers said.
   NYK holds a 38 percent stake in the venture, and the other two partners each have a 31 percent stake.
   Unlike the 2M, OCEAN and THE alliances, which are all cooperation agreements of necessity between separate companies that still compete against each other for business in many ways, ONE isn’t just a strategic alliance, but a wholly new global transport company that’s made up of parts spun off by its parent firms.
   ONE is ranked as the sixth largest entity in the container shipping market at over 1.4 million TEUs, following Maersk (3.5 million TEUs), MSC (about 3.1 million TEUs), CMA CGM (2.5 million TEUs), COSCO (1.8 million-plus TEUs) and Hapag-Lloyd’s 1.5 million TEUs.
   By comparison, ONE member MOL currently has an operating fleet capacity of 578,898 TEUs, while NYK’s is 594,467 TEUs and “K” Line’s is 332,409 TEUs, according to data from BlueWater Reporting’s Carrier Ranking Report.