Recently, Ocean Network Express(ONE) has signed a final agreement to acquire 51% of TraPac LLC(TraPac) and Yusen Terminals LLC(YTI), which are currently held by Mitsui O.S.K. Lines and Nippon Yusen Kabushiki Kaisha respectively.

TraPac is a container terminal operator that provides container terminal services in Los Angeles and Oakland. YTI mainly provides container terminal services in Los Angeles.

"This acquisition is to further integrate the parent company's container transportation business into ONE. The newly acquired container terminal will safeguard ONE's terminal capacity at key and strategic entry points, support its growth ambitions and enhance its services to customers. The completion of these transactions depends on the approval of relevant authorities. "ONE said.

Ocean Network Express(ONE) was formed by the integration of Japan's three major shipping companies-Japan Post, Merchant Ship Mitsui and Kawasaki Steamship, and officially opened on April 1, 2018. Headquartered in Singapore, it has a global fleet of more than 250 ships and provides a wide range of liner network services covering more than 100 countries around the world.

At present, the throughput of Los Angeles and Long Beach ports continued to decline sharply in November, and it is expected that there will be a rebound in the second quarter or even the second half of next year.

Jeremy Nixon, chief executive officer of ONE, said at the December meeting that ONE has canceled about 20% of its voyages since October and expects to cut its capacity by about half around the Lunar New Year on January 22, 2023.

Nixon predicted: "Compared with last year, it is expected to show a negative growth of 15-20%." This will mean leveling off on a similar positive growth level last year. He said that ONE will continue to air to match demand. Like most shipping companies, they may only operate 50% of their services during the Chinese Spring Festival and can only restore capacity when demand increases. However, he said he believes spot freight rates may be bottoming out, which is a long-term positive for the market.

expect Trans-Pacific trade and Southern California ports may return to normal by the second quarter of 2023 and beyond. However, this will depend on retailers reducing current inventory levels before resuming higher import levels.

Nixon remains optimistic that demand will rebound next year. "Let's see how things go, but in general, one of the things we learned in this industry is that things have ups and downs. But when we have a period like this, when freight volumes are down, it usually suggests that at some point in the future, freight volumes will again rise above the median average. And if the freight volume is low for a long time, it usually means that there will be higher cargo volume in the future."