ONE to acquire three container terminals on the West coast of the United States

ONE to acquire three container terminals on the West coast of the United States

On December 27, Ocean Network Shipping (ONE) announced the acquisition of a majority stake in a number of container terminals on the US West Coast.The announcement said ONE has signed a definitive agreement to acquire 51% each of TraPac LLC and Yusen Terminals LLC, currently held by Merchant Marine Mitsui and Nippon Mail.

At present, the containerization industry is facing a series of challenges, some industry insiders have expressed concerns about the market outlook in 2023, and some liner companies have begun to reduce their business, in response. Jeremy Nixon, chief executive of ONE, recently said it was not surprising that demand was "cooling" in the bulk market.

"One of the things we've learned in this industry in general is that things go up and things go down. When we see a drop in volume, it means that at some point, volume will eventually come back up."Jeremy Nixon said ONE would release more capacity when demand picked up. He is also optimistic that the bulk market demand will rebound in 2023.

For the trans-Pacific route contract freight in the New Year, he is also optimistic that the current retailers' replenishment plan will boost demand recovery, which creates better conditions for contract freight negotiations. 

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