Classic expansion
Japanese container shipping line ONE showing its ambition.
Big profits in the bag, a positive outlook for the year – the Japanese shipping line ONE is optimistic about its latest expansion plans. It is renewing its fleet and adding new terminals through to 2030. The line is steering clear of full-blown logistics services, however.
It doesn’t always have to be the comprehensive option. In March the CEO of Ocean Network Express (ONE), Jeremy Nixon, pointed out that the Singapore-based container alliance, founded in 2017 by the Japanese corporations K Line, MOL and NYK, nevertheless won’t lag behind other global carriers in terms of growth.
The company recently earmarked more than USD 20 billion for investment in its fleet, infrastructure and terminals through to 2030. After a long loss-making period ONE, which now operates no less than 156 weekly services, has been running profitably again since 2019.
About 75% of ONE’s fleet is chartered in from NYK, MOL and K Line. In the long term the share of the three founding firms in its fleet is set to decrease to about a quarter of the total.
ONE’s total fleet is thus set to grow by 38 vessels by 2024, bringing its overall capacity to about 520,000 teu. About half of the 1.2 million teu set to be added to the fleet by 2030 will be replacement for existing capacity, Nixon elaborated.
Decarbonising its operations by 2050
According to Alphaliner, ONE operates 208 containerships with an overall capacity of about 1.5 million teu. This puts ONE in sixth place on the list of the top ten maritime carriers worldwide. It goes without saying these days that the fleet expansion will take the environment into account, with the decarbonisation of operations set to become reality by 2050, as per IMO regulations.
ONE hasn’t got its heart set on becoming a logistics player, however – as many other carriers have these days. Half of the above-mentioned investments will be made in new technologies to advance the digitalisation of the firm, and in acquiring terminals.