Lines across Asia merge to create 256 container ships

The problem started off in Shanghai and has impacted the coast including Ningbo and Qingdao since April.  Due to issues unresolved, many lines have attempted to reschedule to other terminals in hope of avoiding delays around the region.

The blame has been shifted to the repositioning of vessels ahead of the launch of their new liner alliances.

Hong Kong Shippers’ slammed the reluctance to fix an ongoing disruption by adjusting vessel speeds due to an attempt of saving cost.

Fuel costs were among the reasons given by main Japanese container lines – K Line, MOL and NYK – as they confirmed their intentions to establish a joint business move for their container shipping.

The holding company will be located in Japan whilst an operating company created in Singapore will open commencing April 1 2018.

NYK are set to control 38% of the stake with K Lime and MOL sharing 31% each.

The three lines are investing $2.8bn and 256 container ships resulting in the world’s sixth biggest container fleet with 7% of global capacity.

Hong Kong, London, Richmond in the US and Sao Paulo will be other offices around the globe of Ocean Network Express.

The Japanese lines released a 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.”