World Economy

Japan’s Top 3 Shippers Plan Merger

Japan’s Top  3 Shippers  Plan MergerJapan’s Top  3 Shippers  Plan Merger

Japan’s top three shippers said they will integrate their container shipping operations to create the world’s sixth-largest fleet, joining a growing trend of consolidation in an industry battling its worst-ever downturn, Reuters reported. Overcapacity and anaemic economic growth globally have left hundreds of ships idle in the industry’s worst slump since its birth in the 1950s and 1960s, with the biggest casualty being South Korea’s Hanjin Shipping Co Ltd which collapsed in August. Nippon Yusen, Mitsui OSK Lines Ltd and Kawasaki Kisen Kaisha Ltd said they would form a joint venture that will have 2.0 trillion yen ($19.1 billion) in combined revenue and control 7% of global container shipping capacity. “The aim of becoming one this time is so none of us become zero,” said Tadaaki Naito, the president of Nippon Yusen, at a joint news conference in Tokyo. Container shipping has seen a wave of mega-mergers as companies seek partners and cost cuts to help ride out the rough waters of a depressed market, and experts say more deals are likely.


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