Latest news with #OceanNetworkExpress
Nikkei Asia
3 days ago
- Business
- Nikkei Asia
Shipping company ONE hedges against China risks with home-built vessels
ONE Singapore, the company's newest ship, can run on both heavy fuel oil and low-emission fuels like methanol and ammonia. (Photo by Tomonori Washida) TOMONORI WASHIDA TOKYO -- Container shipping company Ocean Network Express (ONE) unveiled a Japan-built ship on Tuesday, one of 15 vessels it plans to launch in the next two years as it looks to mitigate risks from ongoing U.S.-China tensions. "We like to think we are an international company, truly a global international company," said CEO Jeremy Nixon at the christening of a ship at an Imabari Shipbuilding plant in Mihara, Hiroshima prefecture, on Tuesday. "I'm very pleased to say that this was the first set of ships that we built, which are owned by ONE."
Business Times
5 days ago
- Business
- Business Times
Post-consolidation, Ocean Network Express charts course for greener future in Singapore-centric fleet expansion
[SINGAPORE] Being based in Singapore is an advantage in building a greener fleet, shipping line Ocean Network Express (ONE) CEO Jeremy Nixon said in an interview with The Business Times. ONE is undergoing a major fleet expansion for a lower-carbon future, with about 50 new vessels on order. This includes a fleet of 32 S Class container ships that will be registered in Singapore. These can be modified to use the greener fuels methanol or ammonia, and thus enjoy incentives for cleaner ships, said Nixon. Another eight new ships will run on liquefied natural gas, which is also less pollutive than conventional fuel oil. All these are part of ONE's decarbonisation strategy to slash emissions by 60 per cent by 2030, and reach net zero emissions by 2050. The S Class ships are the first major new fleet since ONE was formed in 2017, in the merger of three Japanese shipping companies – Nippon Yusen Kaisha, Mitsui OSK Lines and K Line – with a total fleet of around 240 vessels. In its early years, the company focused on consolidating the merger, and could not afford expansion until around 2021, said Nixon. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up ONE has been profitable over the past six years. Like the rest of the industry, it did well during the pandemic, turning profits of US$16.8 billion in 2021 and US$15 billion in 2022. For its 2024 financial year ended March 2025, it posted a profit of US$4.2 billion from a revenue of US$19.2 billion. It is the world's sixth-largest shipping company with about 260 vessels and a combined capacity of just over two million TEUs. This expansion should take its fleet to over 300 vessels, adding more than 650,000 TEU in capacity. This would bring ONE closer to its nearest competitor, fifth-ranked Hapag-Lloyd, and keep it just ahead of seventh-ranked Evergreen Marine, even as both rivals are making multi-billion dollar investments in new alternative-fuel ships. Go green (From left) Samuel Soo, regional director Tokyo office, Maritime and Port Authority of Singapore (MPA); Kenneth Lim, assistant chief executive, industry and transformation, MPA ; Tan Beng Tee, executive director Singapore Maritime Foundation ; Jeremy Nixon, CEO, Ocean Network Express ; Ng Weiting, deputy director, international maritime centre division, MPA; at a recent vessel naming ceremony in Japan. PHOTO: DERRYN WONG, BT After the first few S Class vessels have been in service for five years, they will go back to the shipyard for their scheduled dry dock survey. At that point, they can be retrofitted to use ammonia or methanol. The next 20 to 30 new vessels, however, will be dual-fuel from the start – particularly for methanol. 'That will then allow them to apply for green incentives under the Singapore flag,' said Nixon. Singapore's Green Ship Programme offers concessions on initial registration fees, annual tonnage taxes and port fees for cleaner ships that qualify. Older ships can also qualify for some of these benefits if they are upgraded to use cleaner fuels. Methanol and ammonia are not yet available as commercial ship fuel, but Singapore is laying the groundwork to supply them, with trials and regulatory frameworks. ONE and Singapore are 'like-minded' on decarbonisation, said Nixon, noting that ONE was a founding partner of the Global Centre for Maritime Decarbonisation in Singapore. 'I think there's a real ecosystem here in Singapore to support decarbonisation and encourage it,' he said. 'And it's great to see that the MPA (Maritime and Port Authority of Singapore) is encouraging people to think about decarbonisation, but also giving them some incentive if they do it, if they bring their ships onto the Singapore flag.' Go big, but go smart Scale is 'very, very important' for modern shipping lines, as economies of scale help them stay profitable, said Nixon. Having larger ships that can carry more containers is more efficient and less polluting on a per-container basis, he noted. 'Because if you go with small ship sizes, they're not efficient. Their carbon intensity is not good.' But growing a fleet of large vessels is not the only way to scale. Said Nixon: 'You actually need to have one or two or three consortia partners, where you co-load activity.' ONE is both attaining scale and expanding its network through the Premier Alliance with South Korea's Hyundai Merchant Marine and Taiwan's Yang Ming. All three member lines cooperate and share ship capacity. This allows ONE to have wider geographical coverage and greater shipping frequency. ONE is also using technology to boost efficiency, said Nixon. 'For the last five years now, we've had a strong focus on technology, systems innovation – including AI (artificial intelligence) and machine learning.' It uses in-house AI and machine learning tools to improve ship routes, avoid bad weather and even predict container bookings. By avoiding bad weather, ships do not burn as much fuel. Predicting demand, meanwhile, means that ONE can avoid shipping too many empty containers.
Yahoo
21-06-2025
- Business
- Yahoo
QVC and Cornerstone File FMC Complaint Against ONE for Alleged Failure to Fulfill Contract
It's two against ONE—that is to say, two entities are pursuing legal actions against freight carrier Ocean Network Express (ONE). QVC and subsidiary Cornerstone Brands filed a complaint with the U.S. Federal Maritime Commission (FMC) against ONE on June 11. The complainants allege that ONE violated the Shipping Act of 1984 by contracting a certain amount of cargo space, then informing QVC and Cornerstone that the space was unavailable. More from Sourcing Journal Nike's Settlement With Shoe Surgeon Defines Boundaries on Sneaker Customization US Companies Take Trump Tariff Suit to Supreme Court Port of LA Ordered by Federal Judge to Clean Up Contaminated Wastewater '[ONE] engaged in a practice of providing only part of the contracted service commitment, to reserve space on its vessels for higher-priced spot market purchases, which resulted in mounting shortages,' QVC and Cornerstone alleged in the complaint. The companies state that such actions forced them to pay high spot rates to ship their goods via ocean freight in 2021 and 2022, rather than simply receiving the benefit of their pre-contracted rate with ONE. According to QVC, ONE 'carried only approximately 47.75 percent of its service commitment under the Service Contract, for a shortfall of at least 627 [forty-foot equivalent units] (FEUs)—52.25 percent less than committed.' As a result of that alleged conduct, QVC contends that it had to pay higher prices from alternative carriers at higher rates, which it states cost more than $7.7 million during the 2021-2022 shipping year. According to Cornerstone, ONE 'carried only approximately 42.4% of its service commitment under the Service Contract, for a shortfall of at least 662 FEUs—57.6% less than committed,' which allegedly saw the company paying nearly $10.5 million to ship goods overseas with another carrier. QVC and Cornerstone contend that their logistics teams repeatedly asked ONE for explanations and resolutions, which were met with hesitancy or denial from the freight company. The complaint emphasizes that ONE's alleged contract breaches took place during a time of unusually high freight prices brought on by the supply chain disruptions resulting from the COVID-19 pandemic. QVC and Cornerstone state that ONE's alleged actions negatively contributed to that price hike, while allowing its own profits to soar to record highs. '[ONE's] actions in deliberately failing to honor its service commitments and instead allocating space to the highest bidder also contributed to the inflationary spiral in container rates by artificially increasing demand, including by forcing shippers who had already negotiated service contracts into the open market to make up for shortfalls caused by [its] unjust and unreasonable practices,' they wrote in the complaint. Beyond the allegation that ONE, in the pursuit of profit, illegally gave up space that should have been assigned to QVC and Cornerstone, the companies also alleged that the freight company charged unjust demurrage and detention fees. The complaint notes that, in the 2021-2022 shipping period, Cornerstone paid $978,784 in these types of fees, while QVC paid $797,835. They argue that such charges were assigned unreasonably and unfairly. 'The charges assessed by [ONE] and paid by [QVC and Cornerstone] were assessed during periods of time in which such charges were not just or reasonable because of circumstances outside the control of complainants and its agents and service providers, such as congestion at ports, lack of appointments to pick up or return containers, and shortage of equipment such as chassis,' they wrote. Earlier in the complaint, they also note that ONE charged them premium rates after defaulting on portions of the initial contract. For QVC, those fees reportedly amounted to nearly $1.5 million, while Cornerstone paid more than $340,000. As a result of ONE's alleged conduct, QVC and Cornerstone have asked for a hearing in Washington, D.C. The companies seek 'reparations for the unlawful conduct alleged' in an amount to be determined, as well as an investigation into ONE and an order putting the company's alleged illegal conduct to an end. ONE did not return Sourcing Journal's request for comment.
Nikkei Asia
17-06-2025
- Business
- Nikkei Asia
Japan shipper ONE hedges against China risks with home-built vessels
TOKYO -- Japanese container shipper Ocean Network Express (ONE) unveiled a Japan-built ship on Tuesday, one of 15 vessels it plans to launch in the next two years as it looks to mitigate risks from ongoing U.S.-China tensions. "We like to think we are an international company, truly a global international company," said CEO Jeremy Nixon at the christening of a ship at an Imabari Shipbuilding plant in Mihara, Hiroshima prefecture, on Tuesday. "I'm very pleased to say that this was the first set of ships that we built, which are owned by ONE."
Straits Times
17-06-2025
- Business
- Straits Times
New container ship named Singapore is latest of 32 vessels in Ocean Network Express's fleet expansion
ONE Singapore is 336-metres long and has a capacity of 13,900 twenty-foot equivalent units. PHOTO: THE BUSINESS TIMES New container ship named Singapore is latest of 32 vessels in Ocean Network Express's fleet expansion IMABARI, Japan - Singapore-based shipping company Ocean Network Express (ONE) has named its latest vessel after the Republic, in a ceremony held in Ehime, Japan, on June 17. The vessel, ONE Singapore, is the sixth in a series of 32 new ships of the very large container class that the company has ordered, all of which will be registered in Singapore. The fleet is part of a major effort by ONE to expand its shipping capacity and reduce its greenhouse gas emissions, with the new ships being designed to allow for the use of alternatives to fossil fuels. While the company declined to reveal the total cost of the new fleet, CEO Jeremy Nixon told BT that such vessels typically cost between US$200 million and US$225 million each. ONE is the seventh-largest shipping company in the world by fleet size, with around 260 vessels. The new vessels will bring that total to more than 290. While most of ONE's existing fleet is chartered, ONE will own the new vessels it has ordered, and can thus choose their flag, or country of registration. 'The Singapore Registry of Ships offers ONE a high-quality flag backed by strong regulatory standards, efficient administration, and a reputation for safety and compliance,' said a representative of the company. ONE currently has a total of around 50 vessels on order: the new fleet of very large container ships and others of different classes. Singapore commitment (From left) MPA regional director (Japan and Korea) Samuel Soo, MPA assistant chief executive (industry and transformation) Kenneth Lim, Singapore Maritime Foundation executive director Tan Beng Tee, Ocean Network Express CEO Jeremy Nixon, International Maritime Centre Promotion (Japan and Korea) deputy director Ng Weiting. PHOTO: THE BUSINESS TIMES Tuesday's naming ceremony was held at the Hiroshima shipyard of Imabari Shipbuilding, one of multiple shipyards contracted to deliver these new ships. At the ceremony, Nixon said: 'This vessel, carrying the name of our global headquarters city, symbolises our strong connection to Singapore's vibrant maritime ecosystem.' He added: 'We continue to build upon ONE's strong commitment to Singapore, in its prime position as the leading global international maritime centre.' The vessel's godmother – a prominent woman traditionally invited to officially name a ship – is Tan Beng Tee, executive director of the Singapore Maritime Foundation and senior adviser at the Maritime and Port Authority of Singapore (MPA). ONE Singapore and ONE Synergy, two new vessels from Ocean Network Express' new fleet, at Imabari shipyard. PHOTO: THE BUSINESS TIMES ONE Singapore is 336-metres long and has a capacity of 13,900 twenty-foot equivalent units – a measure of container volume that refers to the space occupied by a standard 20-foot shipping container. It will enter service by the end of June on a trans-Pacific route between the US and Asia. While the ship will use conventional marine fuel, it can be modified to use two cleaner marine fuels, methanol or ammonia, when they are available in future. Singapore is the world's largest hub for bunkering, or supplying fuel to ships. The Republic has taken early steps towards supplying those cleaner fuels, including multiple trials since 2023. Singapore held the world's first ammonia bunkering trial in 2024, and this March, opened applications for licences to supply methanol. The ships in ONE's new series are also designed for increased fuel efficiency and reduced carbon emissions. For instance, they incorporate devices that reduce hydrodynamic drag, meaning that it takes less energy to propel the ship. Of the new fleet, the first 20 vessels are being built by Korea's HD Hyundai Heavy Industries and Japan's Nihon Shipyard, which is a joint venture between Imabari Shipyard and Japan Marine United. These will be delivered in 2025 and 2026. The remaining 12 vessels will be built by the China shipyards Jiangnan Shipyard and SGX-listed Yangzijiang Shipbuilding. These will be delivered from 2027. Earlier this month, ONE reportedly signed for an additional eight container ships of the ultra large class with HD Korea Shipbuilding and Offshore Engineering in a deal worth around US$1.8 billion. THE BUSINESS TIMES Join ST's WhatsApp Channel and get the latest news and must-reads.
