In just one day the world’s biggest shipping lines are criticised for ongoing port congestion in china and then announce the creation of another alliance.
The port congestion that began in Shanghai in April is nowhere near its peak, but is continuing to impact operations at Shanghai and other ports along the coast including Ningbo and Qingdao and has led many lines to try and avoid delays by rescheduling port calls to other terminals in the region.
While increasing export volumes and local factors have contributed to the port operation disruption many still lay the blame on the repositioning of vessels ahead of the April launch of the new liner alliances.
So who’s who in the new alliances, what do they offer and how do they differ? COMING SOON – Our infographic will tell you all you need to know
Continuing supply chain disruption underlines the importance of choosing the right line. So who’s who in the new alliances, what do they offer and how do they differ. Coming later this month our infographic will tell you all you need to know about the new alliances
And the Hong Kong Shippers’ Council have hit out at the liners reluctance to resolve the ongoing schedule disruption by adjusting vessel speeds, because they wanted to avoid higher fuel costs.
Japanese mega lines to merge
Higher fuel costs were high among the reasons given by the three main Japanese container lines – K Line, MOL and NYK – when they announced their intention to set aside rivalries to establish a joint venture for their container shipping businesses
In an announcement today; the new joint venture will trade as “Ocean Network Express” (ONE), with service commencement date scheduled for 1 April 2018. The holding company will be based in Japan and an operating company incorporated in Singapore.
NYK is scheduled to take a 38% stake and the other two 31% each.
The three lines are investing ¥300bn ($2.8bn) and 256 container ships in the $19bn joint venture, which will create the world’s sixth biggest container fleet of 1.4m slots or 7% of global capacity.
Singapore will be the regional headquarters of “Ocean Network Express”, with regional offices in Hong Kong, London, Richmond in the US and Sao Paulo.
K Line, MOL and NYK are members of THE Alliance, the new container grouping that launched on April 1st this year, and will continue as members after April 2018 as ONE.
The Japanese lines issued a joint statement. “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.”