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Wednesday, March 20, 2019

Maritime Logistics Professional

March 29, 2018

Port of Long Beach Welcomes ONE

Photo: Port of Long Beach

Photo: Port of Long Beach

 For three Japanese ocean carriers combining their shipping container business into ONE, the future is bright and it comes in magenta. The future arrives this April.

 
ONE stands for Ocean Network Express, a joint venture of “K” Line, Mitsui O.S.K. Lines and NYK Line that consolidates the three companies’ container shipping units into a single, integrated company. ONE chose the vibrant mix of purple and red to convey the energy and excitement of the new business model with a color that pops amid the muted blue and brown containers crossing the docks.
 
“We’re very excited. We have this moment to combine the best practices of our former companies with new technologies to support our customers,” said Maria Bodnar, Senior Director of Beneficial Cargo Owner Sales for ONE North America Inc. in Richmond, Va. The regional office is one of five supporting ONE’s global headquarters in Singapore.
 
At the Port of Long Beach, ONE customers also will benefit from the fact that “K” Line, one of the three legacy lines, has longstanding operations and investment in International Transportation Service (ITS) Inc., Bodnar said. ITS operates the 246-acre marine container terminal at Long Beach’s Pier G where ONE vessels call.
 
“We have the consistency of having operated in the Port of Long Beach for more than 20 years,” Bodnar said. “The terminal transitions will be smooth for our customers.”
 
Formed in July 2017, ONE has an integrated fleet deployed in all major trade lanes with service to more than 100 countries. The new venture has emerged as the world’s sixth-largest international shipping company, with more than 1.44 million TEUs (twenty-foot equivalent units) of containers, including 10,000 new boxes in ONE’s branding colors of magenta and gray. An additional 100,000 new containers are on order, and all new ships entering ONE’s fleet will sail with magenta hulls.
 
ONE’s network operates more than 250 vessels, including 31 container ships with 14,501-TEU or greater capacity, and connects shippers to more than 200 of the world’s major ports. ONE also remains a member of THE Alliance with Hapag-Lloyd and Yang Ming, continuing the vessel-sharing relationship previously established with each legacy line.
 
Since Feb. 1, ONE has been taking bookings and signing contracts. Containers are being staged ahead of service starting in April.
 
“The Port of Long Beach welcomes ONE and applauds the company’s innovative approach to creating synergy and economies of scale,” said Dr. Noel Hacegaba, the Port of Long Beach’s Managing Director of Commercial Operations and Chief Commercial Officer. “Any time our partners are moving to optimize their operations, it aligns with what we as a port are striving for to strengthen our value proposition and competitive edge.”
 
ONE’s new business model is a great fit with the terminal’s operations and the ongoing improvements ITS is making to add value to its services, said ITS Chief Operating Officer Sean Lindsay. The consolidation allows ITS to increase efficiencies on numerous fronts, Lindsay said.
 
“The benefits to our customers include ONE’s intermodal cargo service,” Lindsay said, referring to containers headed for Chicago, Milwaukee and other inland U.S. destinations. “It aligns with our robust on-dock rail service and related infrastructure improvements.”
 
The improvements have already boosted the volume of cargo moving through the ITS on-dock rail yard to about 30 percent, Lindsay said. The rate exceeds the Port’s current average of 24 percent and supports its goal of optimizing operations and reducing emissions by using on-dock rail to move 35 percent of containers.
 
energyHapag-LloydMitsui O.S.K. Lines