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ONE to face new brand identity challenges: iContainers

New kid on the block in the container trades Japanese joint venture Ocean Network Express (ONE) will face challenges of taking on a new brand identity says iContainers.

The merger of the container line businesses of NYK, Mitsui OSK Lines (MOL) and K Line to create ONE, the world's sixth largest box line started business on 1 April.

With a 6.9% market share ONE online freight forwarder iContainers said it would enjoy benefits of economies of scale, but would also face the challenge of taking on a new brand identity.

With the creation of single business identity the company may lose some clients.

“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,” said Klaus Lysdal, vice president of sales and operations at iContainers.

While the new identity could create challenges Lysdal does expect to see financial benefits for the lines involved.

“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,” he said.

Read more on ONE

ONE a merger of the container businesses of NYK, MOL and K Line officially started operations on 1 April.

ONE announces top regional management appointments

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