OceanNetwork Express (ONE) has partnered with logistics provider LXPantos to launch Boxlinks, a new inland freight repositioning program designed to streamline cargo transportation from the U.S. inland market to the West Coast. This program allows shipowners to use sea containers instead of traditional 53-foot inland containers, providing a more cost-effective option for inland cargo transportation.
According to HiroKitsujii, head of ONE product and network, the Boxlinks program aims to build a more resilient and flexible inland logistics network. The program enables shippers in cities such as Chicago, Dallas, Memphis and the Ohio Valley to ship goods to the West Coast at a lower cost by rail, making it more competitive than traditional inland freight services.
Industry experts point out that inland freight repositioning programs can benefit multi-stakeholder supply chain stakeholders. Sea carriers can earn revenue from return freight, reducing the cost of repositioning air containers; shipowners enjoy lower shipping costs because the focus of sea carriers is on reducing costs rather than making profits from freight. In addition, logistics providers can expand their range of services to increase revenue streams.
Despite the advantages of inland repositioning schemes, some shippers are concerned about limited throughput because carriers may be more inclined to keep their containers near ports rather than inland. However, traders expect ONE's entry into the inland freight repositioning market to increase competitiveness and further drive efficiency gains.