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iContainers: ONE Must Harness Former Liners Synergies

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Ocean Network Express’ (ONE) operations will be tested by its capacity to harness the synergies from the three former liners it is made up from, says iContainer’s Vice President of Sales and Operations Klaus Lysdal.

Mr Lysdal said: “Each carrier has its own strengths and weaknesses. So the trick will be to carry over the strengths.

“Obviously, with three company cultures coming together into one there will be some values that will change.

“Approaches and protocol will have to be set as the trio look to take on a brand new identity.

“This will cost them some clients, especially those who enjoyed a certain way of working with a certain carrier.”

ONE, the result of a merger of Japan’s formerly three largest shipping lines – Nippon Yusen Kaisha (NYK), Mitsui OSK Lines (MOL) and Kawasaki Kisen Kaisha (K Line) – began receiving bookings on February 1, 2018, and fully began operations on April 1, 2018.

Read the “Digital Container Shipping: The Path Toward Intelligent Supply Chains” for an in-depth analysis of the digital capabilities of integrated supply chains

It will be operating with a combined fleet size of 1,440,000 TEUs, utilizing around 230 vessels – offering 85 services loops calling at over 200 major worldwide ports across 100 countries.

The merger is expected to cut approximately $440 million in costs for ONE in its first fiscal year of operations.

Mr Lysdal continued: “The industry will be waiting for the operational and financial results of this merger.

“But at first look, it's safe to say that it makes a lot of sense for the three to come together and join forces instead risking it on their own.

“Hopefully they’re able to clearly identify the strengths of each entity and harness the synergies created to refine their approach to clients.

“It's now very much a matter of what style is adopted as the new company culture and what type of service they want to offer their clients.”

Read more: ONE Positions Executives to Spur Growth

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