US Axes Japanese Carrier Merger
US maritime regulators have thrown out an application to operate as a merged company submitted by the three Japanese containership operators.
Through the application Nippon Yusen K.K., Mitsui O.S.K. Lines and Kawasaki Kisen Kaisha (K-Line) aimed to start a company that would allow them to share ships and port calls.
It would also have given them rights to negotiate with third-party service providers as a single company.
Meanwhile, the carriers have applied for a merger back in Japan that is still awaiting approval.
Their Japanese merger is expected to be finalised by July, 2017 and begin operations in 2018.
It would create the world’s sixth biggest container operator, with a 7% share of the global market, and save the liners approximately US$1 billion each year.
The proposed merger occurs amid a drop in freight rates and shipping volumes for many companies.
This has led to the bankruptcy of Korean liner Hanjin shipping and spurred container shipping alliances.