Toronto, November 3, 2016
Facing a shrinking market for container shipping, three of the largest steamship lines in Japan, NYK, MOL, and K-Line, have decided to merge their containerized shipping operations. The joint venture, including both land and sea operations, will create the sixth largest steamship line in world, controlling about seven percent of the global container shipping market.
All three companies say they are committed to maintaining "business as usual" until the merger is completed in early 2018.
The merger comes after the unprecedented financial challenges which have faced the container shipping industry over the last five years. Global trade growth has slowed as a result of decline in Asia manufacturing at the very same time as supply is increasing due to the launch of new mega container ships. This has undermined the financial stability of the steamship lines and has forced mergers and acquisitions in order to seek long term sustainability.
For more information, please call Debbie McGuire, Manager – Freight Solutions at (905) 882-4880.