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ONE appeases box shipping sector by making minimal changes

SDI Logistics Co.,Ltd | Updated: Feb 10, 2018

ONLY "minor changes" are expected to be made to the existing service networks of Japanese shipping lines "K" Line, MOL and NYK when they launch the Ocean Network Express (ONE) on April 1, according to analysis byAlphaliner.

The main changes in the new ONE network would affect intra-Asia routes, where services will be consolidated to avoid overlaps.

The analyst expects the service rationalisations to be limited to slot charters on third-party carriers and Alphaliner does not anticipate "any significant removal of existing 3J tonnage". This will be welcome news for shipowners who had feared the return of a number of ships after the three carriers merge their container shipping operations, reported UK's The Loadstar.

"The Africa and Oceania routes will see no changes, with all current 3J service coverage retained," said the consultant.

It added that ONE's coverage of the Latin American trade would also be "largely retained",with the exception of the launch of a new service from Asia to Central America and the west coast of South America. The move follows restructuring on the tradelane sparked by Maersk Line's acquisition of Hamburg Sud. ONE has announced three new weekly loops deploying 34 vessels of 6,000-13,000 TEU.

ONE members plan to achieve cost savings of US$440 million in their first year of operation and thereafter $1 billion a year. The cost savings will mostly come from operational and back office staff redundancies, along with a reduction in, and consolidation of, port agencies, commercial feeders and service provider fees, as well as cuts to stevedoring rates.

The Loadstar reports that most of the key commercial contacts of "K" Line, MOL and NYK are being retained in ONE to offer customers continuity.