Japan's three largest shipping companies plan to combat the global slump in the container business by combining their their container-shipping operations, creating the world's sixth-largest competitor in the process.

Japan’s top three shipping companies in terms of revenue are: Nippon Yusen K.K.; Mitsui O.S.K. Lines Ltd.; and Kawasaki Kisen Kaisha Ltd..  But each one is predicting operating losses this year.  By combining operations, they expect to save the equivalent of AU$1.37 Billion annually.

The joint venture will be formed by July 2017 and expects to start operations by April 2018.  It and will have 256 vessels and US$19 Billion in sales, making it Asia's biggest box carrier after China Cosco.  Nippon Yusen will own 38 percent of the merged entity while Kawasaki Kisen and Mitsui OSK will each own 31 percent.

This is the latest in a wave of shipping consolidations:  China's two shipping giants, Cosco Group and China Shipping Group, merged their operations; the world’s third-biggest container operator, France's CMA CGM, bought Singapore's Neptune Orient Lines Ltd.; and Germany’s Hapag-Lloyd AG merged with Dubai-based United Arab Shipping Co.