AKIPRESS.COM - Three major Japanese container shipping lines announced Monday they were planning to merge their shipping and overseas terminal operations as the industry struggled with overcapacity and mounting losses, according to DW.

Kawasaki Kisen, Mitsui O.S.K. Lines and Nippon Yusen said they agreed to set up a joint venture with the combined operations to start in April 2018. The three companies added they would also merge their terminal management businesses outside Japan.

"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, contributing to instability of the industry's profitability," the shippers said in a statement.

The companies noted they'd have a combined fleet capacity of 1.4 TEUs (Twenty Foot Equivalent Unit, specifying the capacity of a container ship), putting them in sixth rank worldwide with a 7-percent market share.

The three shipping lines, which belong to the Hapag-Lloyd and Yang Ming Line alliance expect to save $1.1 billion in costs by merging.