News / Samudera and Imoto form feeder JV to serve Japan after alliance revamp

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Singapore-based Samudera Shipping and Japan’s Imoto Corp, part of Imoto Lines, today launched Blue Ocean Shipping, a joint-venture carrier aimed at exploiting opportunities in Japan’s coastal and regional shipping markets.

Demand for feeder services from Japan is set to grow after the Premier Alliance decided to halt direct sailings between Japan and Europe from April – as reported by The Loadstar yesterday.

The alliance’s network decision leaves Japan, the world’s fourth largest economy, without a single direct sailing to Europe, which analysts at Linerlytica said would be the first time since 1971. Analyst Tan Hua Joo told The Loadstar the loss of direct Japan-Europe calls mirrored the country’s declining export volumes.

“Japan’s share of total EU container imports has decreased to less than 3%, and these volumes no longer justify the longer vessel route needed to serve it with direct port calls,” Mr Tan said.

But he added: “With reduced direct calls, there would be higher requirements for feeder services.”

Blue Ocean Shipping will launch by June, with an initial two containerships purchased from Imoto, whose shareholders include Mitsui OSK Lines and Cosco unit OOCL. The new carrier would grow its fleet “prudently” to capture “suitable opportunities”, it said.

Imoto Corp today operates 26 vessels, ranging in size from 88 teu to 1,100 teu.

Samudera, through its Japanese subsidiary, will hold a majority 51% stake in Blue Ocean, with Imoto Corp, which commands 75% of Japan’s feeder market, holding the 49% balance. Blue Ocean will be headquartered in Kobe.

Samudera Japan would also manage a labour programme to facilitate the deployment of trained Indonesian maritime workers in Japan.

The Premier Alliance’s Far East Pacific 1 (FP1) pendulum service connecting North Europe-Asia-US west coast will in April be split into two separate loops, with the Japanese port calls no longer offered on the upsized Far East-Europe 1 (FE1) service, with larger ships of 13,000-15,000 teu set to replace the 9,000 teu ships deployed on the FP1.