ONE has signed a definitive agreement to acquire 51% of shares in TraPac LLC and Yusen Terminals LLC currently held by Mitsui OSK Lines and NYK Lines, respectively.
On December 27, Ocean Network Express (ONE) announced that it had acquired majority stakes in multiple container terminals on the west coast of the United States.
The announcement stated that ONE has signed a definitive agreement to acquire 51% of shares in TraPac LLC and Yusen Terminals LLC currently held by Mitsui OSK Lines and NYK Lines respectively.
It is understood that TraPac LLC is an operator that provides container terminal services at the Ports of Los Angeles and Oakland, while Yusen Terminals LLC mainly provides terminal services at the Port of Los Angeles.
Regarding the acquisition, ONE said it was an important move to further integrate its parent company's container shipping business into ONE.
ONE explained that the current market situation of tight supply chain due to the epidemic continues, which further highlights the importance of container terminals in keeping global trade unimpeded. The newly acquired container terminal will ensure ONE's operational capabilities in key ports while improving service capabilities.
The completion of this transaction still needs to be approved by relevant departments.
Currently, the container shipping industry is facing a series of challenges. Some industry insiders have expressed concerns about the market outlook for 2023, and some liner companies have begun to scale back their businesses in response.
ONE's choice to acquire at this time also reflects the company's attitude in the current market environment.
ONE CEO Jeremy Nixon recently said that the current "cooling" in demand in the container shipping market is not surprising.
“One of the things we’ve learned in this industry in general is that things go up and down. When we have a drop in volume, it means at some point, it’s going to come back.”
Jeremy Nixon said that ONE will release more capacity when market demand picks up. He is also optimistic that container shipping market demand will rebound in 2023.
Regarding the contract freight rates for the trans-Pacific routes in the new year, he also optimistically predicted that the current retailers' inventory replenishment plans will boost the recovery in demand, which will create better conditions for the negotiation of contract freight rates.
ONE's performance report for the first half of fiscal year 2022 (April-September 2022) showed that the company achieved operating income of US$18.386 billion, a year-on-year increase of 38%; net profit after tax was US$11.019 billion, a year-on-year increase of 63%; earnings before interest, taxes, depreciation and amortization (EBITDA) was US$11.702 billion, a year-on-year increase of 56%.
Original text from:https://mp.weixin.qq.com/s/xUni6uC2bAUTtiVc_k6Pmg
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