Japan shippers to merge container lines

Merging operations: A man works behind a cargo container of logistics service provider NYK Logistics, a Nippon Yusen (NYK Line) unit, at a port in Tokyo. The combined entity of Nippon Yusen, Mitsui O.S.K. and Kawasaki Kisen will be formed by July 1 and will have about US19bil in sales. — Reuters

TOKYO: Japan’s three biggest shippers agreed to combine their container operations to create the world’s sixth-largest box carrier, as the industry steps up consolidation this year amid a global turmoil in the sea-cargo business.

Nippon Yusen KK, Mitsui O.S.K. Lines Ltd and Kawasaki Kisen Kaisha Ltd, which are predicting operating losses this year, will create a company that will control 7% of the world container-shipping trade, according to a joint statement in Tokyo.