Nippon Yusen KK, Mitsui O.S.K. Lines Ltd. and Kawasaki Kisen Kaisha Ltd., Japan’s three largest shipping companies, agreed to merge their container operations into one company. Their shares surged.

The joint company will be set up by July 1, according to a joint statement distributed in Tokyo Monday. Combining the container line business of the three Japanese companies will create an entity that will have a market share of 7 percent, making it the world’s sixth largest, according to the firms.
The global container industry has been going through turmoil since the 2008 financial crisis brought trading to its knees. South Korea’s biggest container-shipping line Hanjin Shipping Co. filed for bankruptcy protection in August while other container lines have tried to cut costs and merge with rivals to tide over the crisis.
Nippon Yusen surged as much as 9.9 percent to 222 yen in Tokyo, the biggest intraday jump since May 2013. Kawasaki Kisen jumped as much as 8.5 percent, the most since March. Mitsui OSK jumped as much as 12 percent, the most since 2008.
Helped by cheap loans, container lines worldwide have hung on even as freight rates to move goods have remained depressed. While A.P. Moeller-Maersk A/S, the world’s biggest container-shipping company, has embarked on a restructuring program, companies like Hapag-Lloyd AG and France’s CMA CGM SA have bought out smaller rivals to consolidate the industry.
SOURCE: https://gcaptain.com/japanese-shipping-companies-merge-container-operations/

Notice of Agreement to the Integration of Container Shipping Businesses
Kawasaki Kisen Kaisha, Ltd., Mitsui O.S.K. Lines Ltd., and Nippon Yusen Kabushiki Kaisha have agreed, after the resolution by the board of directors of each company held today, and subject to regulatory approval from the authorities, to establish a new joint-venture company to integrate the container shipping businesses (including worldwide terminal operating businesses excluding Japan) of all three companies and to sign a business integration contract and a shareholders agreement.

1. Background

Although growing modestly, the container shipping industry has struggled in recent years due to a decline in the container growth rate and the rapid influx of newly built vessels. These two factors have contributed to an imbalance of supply and demand which has destabilized the industry and has created an environment that is adverse to container line profitability. In order to combat these factors, industry participants have sought to gain scale merit through mergers and acquisitions and consequently the structure of the industry is changing through consolidation. Under these circumstances, three companies have now decided to integrate their respective container shipping on an equal footing to ensure future stable, efficient and competitive business operations.

The new joint-venture company is expected to create a synergy effect by utilizing the best practices of the three companies. And by taking advantage of scale merit of its vessel fleet totaling 1.4 million TEUs, realize integration effect of approximately 110 billion Japanese Yen annually and seek swiftly financial performance stabilization.

By strengthening the global organization and enhancing the liner network, the new joint-venture company aims to provide higher quality and more competitive services in order to exceed our clients’ expectations.

2. Overview of the new joint-venture company

*TEU: Twenty-foot Equivalent Unit

3. Schedule

Agreement date: October 31st, 2016

Establishment of the new joint-venture company: July 1st, 2017 (planned) Business commencement: April 1st, 2018 (planned)

4. Other

The expected impact of the integration to business performance will be informed by each individual company once details have been confirmed.

Taiphoon Haima
Excerpted from www.scmp.com (South China Morning Post), Thursday, 10/20/16, 10:00AM
Hong Kong awoke to yet another typhoon standby signal No 1 on Thursday morning as Tropical Cyclone Haima edged within 800km of the city, with the possibility of the more serious strong wind signal No 3 expected to be issued tonight.
Meanwhile, the Hong Kong Observatory has issued a rare notice to the public not to believe “fictitious” weather information and forecasts spreading on internet forums or social media.
The official standby signal was issued at 8.20am on Thursday, after two days of torrential downpours and flash floods brought on by Typhoon Sarika, which is now moving away from the region. The rains on Wednesday, brought by the northeast monsoon at the tail end of Sarika, caused serious road flooding and traffic congestion across Hong Kong.
An MTR spokeswoman said 13 intercity through trains between Hong Kong and the mainland scheduled for Friday had been suspended. Meanwhile, the Hong Kong airport live flight information board showed at least 54 departure and 52 arrival flights scheduled for Friday were also cancelled. Cancelled flight destinations included Taipei, Shanghai and Jakarta, New York, Vancouver and Los Angeles.
Meanwhile, several container ports announced a suspension of some of their operations. Hongkong International Terminals said its terminals 4, 6, 7 and 9 as well as its two of its depots would be suspended from 2pm Thursday. Modern Terminals announced it would suspend laden return and release from noon Thursday and empty return and release at 2pm.
The weather in Hong Kong is expected to “deteriorate significantly”, with frequent squalls, heavy rain and seas rough with swells as the rainbands associated with Haima hover over the territory.
“Members of the public should remain vigilant and take all precautions as early as possible,” Kong said.
Typhoon Haima slams Philippines
Excerpted from www.wbaltv.com, 10/20/16 1:15AM
Typhoon expected to hit as many as 2.7 million people
Winds of 220 kilometers per hour (137 mph) prior to arrival put it on par with a Category 4 hurricane, the center said. It’s expected to affect as many as 2.7 million people in seven provinces before veering northwest toward the Chinese coast by Friday.
Haima is now heading towards China, where work teams have already been deployed to Guangdong province in anticipation of its arrival, according to Xinhua.
At its peak, Haima packed winds of up to 315 kilometers per hour (195 mph), the equivalent of a Category 5 hurricane on the Saffir-Simpson Hurricane Wind Scale.

HANJIN VESSEL STATUS

HANJIN VESSEL STATUS

Hurricane Matthew
With the impending Hurricane Matthew, BOC is continuing to monitor the path and any potential port closures or vessel delays. At this time delays in the operations of southeastern ports can be anticipated. As more information becomes available we will be sure to pass those details along. Any questions can be directed to your local BOC representative.

CBP Alert –  The Port of Charleston, South Carolina will be closed on Wednesday October 5, 2016, at noon, due to Evacuation Orders related to Hurricane Matthew and will remain closed through COB on Friday, October 7, 2016. The Port will resume normal operations on Tuesday, October 11, 2016.
On October 5 through October 7, 2016, a local closure day is granted to all who file entries at the Port of Charleston, South Carolina (1601). CBP is extending an additional day, without penalty, for any entry summaries and payments of duties that were due on October 5 – October 7, 2016, in the Port of Charleston, South Carolina
FDA Alert
SUBJECT: FDA OFFICES CLOSED DUE TO HURRICANE MATTHEW
FDA import offices in the following cities will be closed Thursday, October 6 and Friday, October 7, 2016 due to potential impact from Hurricane Matthew:
Florida: Miami, Port Everglades, Boca Raton, Maitland, and
Jacksonville.
Georgia: Savannah
South Carolina: Charleston
FDA review of entries in affected ports will be limited; review of perishable entries will be prioritized during this time.
Staff may not be available by phone and e-mail may be disrupted due to anticipated service and power outages. If conditions warrant and there are no safety concerns, staff will report for duty on Tuesday, October 11, 2016

HANJIN VESSEL STATUS

Operating Vessel Status

 Hanjin’s Customer Advisory Notice

As you are aware, due to legal and financial constraints under Korean court receivership many service operations have been impacted and in many cases altered or even halted. For vessels which have been halted, we have exhausted all means to secure alternative options to complete final delivery to the final destination. To our sincere regret, we are unable to perform the intended delivery. Below is the list of halted vessels and their respective locations.

Please contact your local sales branch for additional information and we deeply apologize for the situa tion.