As of April 1, 2018, Japan’s big three shipping groups commenced joint service under the name ONE (Ocean Network Express) . The integration came as a result of sluggish cargo demand, oversupply and historic low freight rates. Combined, the new joint venture, headquartered in Singapore, will be the 6th largest carrier in the world.
The container shipping industry has struggled in recent years due to a decline in container growth rate and the rapid influx of newly built vessels. These two factors have contributed to imbalance of supply and demand which has destabilized the industry and created an environment that is adverse to container line profitability.
We have seen mergers over the last couple of years with Hapag/UASC, CMA/APL, and China Shipping/Cosco. The bankruptcy of Hanjin in 2017 hit home and carriers do not want a repeat of that scenario. Consolidations are seen as vital to survival.