The marine industry is as vast as the ocean itself and it is constantly evolving. With the gradual progress in time, the marine world is also embracing newer forms of technology and shipping techniques. The various shipping companies all around the globe have two common goals: to enhance their overall performance and to excel in performance. In order to survive and thrive in this fast-changing industry, many organizations have come with new strategies that will ensure their popularity and accountability.
One such example is that of the formation of ONE or the Ocean Network Express, which has been created by the merging of the three largest shipping lines in Japan to give rise to the sixth largest container shipping organization in the entire world. Let us read on to find out more about this joint venture and its advantages in the modern world!
The Creation of ONE:
Ocean Network Express (ONE) is a renowned, global transport company that is based in Japan. The organization was formed by bringing together three of the biggest names in the Japanese shipping industry – the Mistsui OSK Lines (MOL), the Nippon Yusen Kaisha (NYK) and the Kawasaki Kisen Kaisha (K Line). The individual stakes were calculated as the Nippon Yusen Kaisha at 38%, the Mitsui OSK Lines at 31% and the K Line at 31%. Even though the organization was formed way back in 2016, the ONE commenced its trading actions from the 1st of April this year.
Its global headquarters are located in Singapore, a holding company office is located in Tokyo and several regional headquarters are located in Richmond (United States), in Sao Paolo (Brazil), in London (United Kingdom) and in Hong Kong, as well. Jeremy Nixon, the new CEO of the ONE venture, planned the initial set-up of the company with a well-organized fleet having 240 containerships, which includes 31 large-sized vessels of 20,000 TEU each. ONE started its corporate and sales activities from October 2017 and has its offices spread out across 90 countries in the world.
The Profile of the Organization:
ONE has decided its slogans to be: “Alxl routes lead to ONE” and “We are ONE” to highlight the fact that the organization has originated from three separate entities to merge into a single one. In spite of the ONE being a confluence of three different companies, it has developed its own identity by imbibing the strengths and experiences gathered from the original companies. The merging of the companies has been well-appreciated across the globe since it is not easy for a single company to undertake such a colossal project, all alone. With a prudent protocol in action, it will surely pave the path for success of the trio project – the ONE.
According to their CEO, ONE strives to be large and popular enough to survive in the industry, yet be small and grounded enough to care. Unlike others, ONE does not believe in joining the stiff competition to become the largest carrier line in the shipping market.
ONE prefers to be known as a global company with Japanese roots instead of being labelled as just a Japanese company that became global as an afterthought. Being proud of its Japanese origin, ONE has chosen the cherry blossom magenta as the color of the brand. The ONE is also a significant member of THE Alliance, along with other reputed organizations like the Hapag Llyod and the Yang Ming Marine Transport Corporation.
The Planning Philosophy and Goals:
Jeremy Nixon agrees that the formation of ONE has been a challenging procedure but things have been steadied with the help of proper planning, overall uniformity a highly-disciplined approach. Mr. Nixon is of the opinion that the company should focus on the smooth transition of the carrier and be on the lookout for value-added opportunities to accentuate the existing set-up.
For this, a differentiated service approach on yield management and a strong balance sheet is very much required. With the combined knowledge and shared technology, ONE can make the shipping freight a lot easier to consolidate while meeting the demands of the clients, like allocating capacity. As a result, the organization will be providing you with top-notch quality of competitive services in future.
Ocean Network Express has recently introduced their first container vessel called the ONE Minato. The huge 14,000 TEU vessel was constructed at the Imabari Shipbuilding site in Japan. The ONE has transferred its first round of containers from Thailand, which were loaded with shipment from Canon, the Japanese electric company. This indicates the production of more of such new, timely services in the region.
Kosuke Wada, the company’s Senior Vice President, BPIT Strategy and Innovation, believes that ONE’s spectacular office in Singapore is designed to inspire a good level of cooperation between the colleagues and with the shipping industry.
Challenges Ahead For The Merger
While others have praised ONE for the strategic bold move, there have been some challenges that the Line is facing. These challenges include IT problems, improper handovers, being forced to apply a surcharge on emergency bunkers, among a few other factors.
While it has been projected that their first quarter may not do too well, there is still optimism for the Shipping Line.
What does this mean for the ocean shipping industry? Will we see more shipping lines joining to become larger companies? Write to us with your thoughts on email@example.com