Japanese ocean shipping and transport company Nippon Yusen Kabushiki Kaisha, also known as NYK Line, on Tuesday announced it will sell Nippon Cargo Airlines to All Nippon Airways.
Publicly traded NYK Line said it is exiting the air cargo business because it has become too expensive to run a profitable airline and grow to meet new demand.
The acquisition will help All Nippon Airways, which operates nine Boeing 767 medium widebody freighters and two large 777 freighters in addition to 225 passenger aircraft, achieve its goal of expanding its international air cargo network and related products to better support shippers.
“For ANA, the deal strengthens their cargo arm dramatically.
The document lays out expectations for demand in all-cargo aircraft to increase in the medium term as airlines downsize passenger aircraft, leaving less room for freight.
ANA recently reported estimated cargo revenue of 269 billion yen for fiscal year 2022, down 25% from the extraordinary high the prior year.
NYK Line, by comparison, estimated Feb.
NYK Line said how Nippon Cargo Airlines’ shares will be transferred to ANA, as well as the terms and conditions, remain to be determined.
NYK Line in 2010 took control of the entire company by buying out ANA’s 27.6% stake with the goal of becoming an integrated logistics company offering ocean, land and air transportation.
Maersk has long operated freighters to provide outsourced air transport for express carriers like UPS in the European market but in late 2021 decided to provide airfreight service directly to its own customers.
Last month, it opened a logistics facility in the Guangzhou Airport’s economic zone that provides warehousing, e-commerce and temperature-controlled freight handling, according to reporting by The Loadstar and another trade publication.