Business Development

How Ocean Shipping Companies Are Adapting To Global Trade Shifts

Ocean Shipping Company

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One main transportation mode for the entire global trading is ocean shipping. Almost 90% of all the traded goods are being carried over the waves. Maritime activities and ocean shipping have become a huge part of the entire economic group.  

While most of the trading occurs on the ocean, it adds more value to economic development.  

Now, this offers various opportunities and challenges. The huge number of ocean shipping is increasing overall greenhouse emissions by 2.9%. On the other hand, the demand for global ocean freight is also growing; the number will be set at a high level by the year 2050.  

In this article, I will discuss the relationship between ocean shipping companies and global trading. We will use Ocean Network Express as an example to understand ocean freight’s impact on the economy.      

Relationship Between Global Trade And Ocean Shipping Companies  

Shipping is considered the backbone of worldwide trade. Almost 80% of the world’s trading is carried out by ocean shipping companies. In addition to that, they also trade 70% of the overall trade value.  

Ocean shipping companies carry trading services, including many ships, oil tankers, and containerships.   

Without shopping activities, there would be no bulk transport of raw materials, the import and export of goods, and other affordable products. With the rise of ocean shipping companies, seaborne trading continued to expand.  

This seaborne trading is playing a huge role in benefiting consumers with a competitive freight cost.  

The ocean shipping companies are also increasing their efficiency in providing better services for trading goods. Their contribution has been useful in increasing economic liberalization and helping the industry grow further.  

There are about 50,000 merchant ships under the ocean shipping companies that are trading goods every day. As a result, it helps the economy to grow and establish a better relationship with other regions.    

Ocean Network Express is one such ocean shipping company that plays a huge role in global trading and successful freight services.   

Company profile: Ocean Network Express  

Company profile: Ocean Network Express  

In 2016, three of Japan’s most renowned shipping companies, Nippon Yusen Kabushiki Kaisha (NYK), Kawasaki Kisen Kaisha (K line), and Mitsui OSK Lines (MOL), merged to create a joint venture named Ocean Network Expres or ONE. 

After merging, the company started its journey in 2018. It is headquartered in Tokyo, Japan, and Mr. Koichi Muto is its CEO.  

As per recent data, the company has positioned itself as the sixth-largest ocean shipping company.  

They currently have 200 ships with a capacity of 1.4 million TEU. The company has created a strong presence in different parts of Asia with excellent transportation and freight services. It operates through the Middle East, the Americas, and Africa routes.    

Services That ONE Offers 

Having a strong history as a famous ocean shipping company, Ocean Network Express has a lot to offer. They have a wide range of shipping services that help achieve better customer satisfaction 

Their services include bulk shipping, container shipping, and refrigerated shipping. The company also added warehousing, customs clearance, and trucking to its service list.  

ONE offers many services, including container shipping, one of the most popular. They handle small and large shipments and help businesses transport goods.  

In addition, ONE also offers various shipping vessels, which minimizes the issue of finding the perfect size vessel. Bulk Shipping is the other most popular service provided by     

Sustainability Initiatives By The Ocean Shipping Companies

Sustainability Initiatives By The Ocean Shipping Companies

Creating and adopting environmental ships and sustainability initiatives provide a huge direction towards sustainability. The maritime cargo is giving more preference to the newly built cutting-edge features such as energy saving. 

However, the question is how it can benefit ocean shipping companies and global trading.  

Going green can create a lot of benefits for ocean shipping companies in several ways, such as fuel and cost efficiency, a better reputation and appeal to the customer, or even easier access to green financing.  

Moreover, going green can help create innovative market opportunities. 

♻️ Better Fuel Efficiency And Cost Savings

Making good investments in energy-efficient vessels is helping the industry save money and contribute to a better environmental strategy. It is a great money-making strategy for companies while keeping the environment safe.  

The researchers indicate a potential 25% decrease in carbon emissions and over 200 million tons of CO2 savings. Ocean shipping companies use this to reduce carbon emissions while focusing on their bottom line.

So, the emerging trend of going green for shipping can impact better global trade and the economy.  

♻️ Reputation And Customer Appeal 

Going green can be a huge opportunity for ocean shipping companies to win over customers’ hearts. Companies that start incorporating green strategies can easily stand out in the marketplace.  

Moreover, they can satisfy customers who prefer business with sustainable shipping companies. 

Ocean Network Express is known for its sustainable practices and contribution to green shipping. In 2021, the company successfully used biofuel to power its vessels. The trial was performed at the Rotterdam port in the Netherlands.   

They also collaborated with one of the largest shippers in the world, Mitsui OSK lines, to lead the industry in adopting green fuel. This sustainable transformation is causing a huge change in global trade.  

♻️ Green Financing 

Ocean shipping companies can reap the advantages of green financing if they continue prioritizing sustainability. 

For example, the EU’s Fit for 55 package offers €5.4 billion for sustainability and an efficient fleet. A huge chunk of this fund is dedicated to green initiatives. They can use the funds for green initiatives such as on-shore power supply.    

Such systems help the ships use energy from such places and practices and avoid harmful decisions.  

Green financing also helps upgrade technologies, control overall quality, enhance values, and intimately improve international competition, positively impacting global trading.        

The Recent Developments 

The Recent Developments 

Ocean freight is essential for better international trade, which comprises moving goods from one location to another. This freight has undergone a huge revolution resulting from advanced technologies in moving goods, container technology, and vessels.  

As a result, it helped increase productivity, practice sustainability, and improve dependability for moving goods.   

🚚 The Freight Rate  

The ocean shipping companies have adopted technology to improve ships and containers. This further helped in increasing effectiveness. Moreover, they also optimized the routes, leading to a shorter time in transition.  

These developments helped improve importers’ and exporters’ competitiveness. So, there was an economic boom in the industry. 

As the economic scale increased, the ocean shipping companies started to bring large vessels. This helped to provide larger spaces to ship more carriers at an affordable shipping solution.   

🚚 Ocean Freight Shipment

Ocean shipping companies have started to focus more on efficient and safe shipping. To obtain this, companies have started to adopt new technological advancements that have led to better container technology and high-quality vessels. 

On the other hand, intelligent containers and efficient monitoring technology are another remarkable innovation that has greatly impacted shipping operations.  

Ocean shipping companies were able to monitor through advanced technologies like RFID. IoT, or the Internet of Things, gives real-time visibility data about the containers’ location, security, and health.   

The benefits? These advanced technologies helped reduce delays and disruption in the overall supply chain. Companies were also able to plan and coordinate efficiently.  

On the other hand, shippers can also closely scan their own containers for the ultimate level of transparency and take quick action for any anomalies.   

For instance, Ocean Network Express uses telematic devices in their reefer boxes for real-time visibility. They can also fetch data about weather, humidity, and other natural conditions.  

🚚 Ocean Freight Tracking System 

Ocean shipping services include various tasks like paperwork, customer clearances, delivery, and cargo handling. Thanks to the technologies used in these services, the development of vessel and container technologies has significantly improved.   

These shipping companies harnessed the latest technologies and created automated containers, terminals, and potential cutting-edge tools to handle cargo. As a result, it improved the operations’ overall effectiveness and increased the loading and unloading speed. 

Ocean Network Express has introduced ONE-line container tracking, which allows you to immediately track and trace the movements of all your international shipments.    

Digitalization Of Ocean Freight 

Digitalization of ocean freight

Because of digital technologies, companies have enhanced both competitiveness and efficiency in their operations. 

Automation is the key to the transformation of the shipping industry. Ocean shipping companies have introduced autonomous marine vehicles, such as automated ships and drones. This has decreased human intervention but increased overall efficiency. 

On the other hand, the companies were able to reduce costs and improve overall safety. Their approach to streamlining their existing processes creates new opportunities in their business, causing a huge change in global trade and the economy.     

Wrapping It Up! 

In conclusion, the ocean shipping companies and their services continued to drive the trading movement on a massive scale while forwarding toward profitability.  

Digitalization, sustainability, better networks, and an aim for efficiency are the key players in ocean shipping companies’ current position. As businesses and consumers move towards a commitment to sustainability, it is helping to reshape ocean freight and global trade.  

I hope this article has helped you learn about how ocean shipping companies are adapting to the modern global trade shift. 

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Ankita Tripathy

Ankita Tripathy loves to write about food and the Hallyu Wave in particular. During her free time, she enjoys looking at the sky or reading books while sipping a cup of hot coffee. Her favourite niches are food, music, lifestyle, travel, and Korean Pop music and drama.

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discoverblog June 4, 2024 at 5:44 pm

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