Japan's three biggest shippers agreed to spin off their container operations and merge them to create the world's sixth-largest box carrier as the global container-shipping industry continues to shrink.

Nippon Yusen KK, Mitsui O.S.K. Lines Ltd. and Kawasaki Kisen Kaisha Ltd. agreed to merge the box businesses into a company that will control 7 percent of the world's container-shipping trade, according to a joint statement in Tokyo on Monday. The combined entity will be formed by July 1, have about ¥2 trillion in sales and will be Asia's biggest box carrier after China Cosco Shipping Corp.

The global container industry has been in turmoil since the 2008 financial crisis brought trading to its knees. South Korea's biggest container-shipping line, Hanjin Shipping Co., filed for bankruptcy protection in August while other container lines like A.P. Moeller-Maersk A/S, the world's biggest, have restructured to cut costs even as rates to move shoes and televisions stay depressed.