Liner operator Ocean Network Express (ONE) and South Korean forwarder LX Pantos announced a joint venture, Boxlinks, a new player offering end-to-end U.S. domestic intermodal transportation services.
The joint venture will manage ONE’s inland-to-coastal domestic transport needs through a Domestic Reposition Program (DRP).
“By leveraging empty containers for intermodal operations, Boxlinks aims to create new revenue streams while improving operational efficiency,” LX Pantos said in a release. “This initiative is designed to optimize empty container repositioning and unlock additional value-added transportation opportunities, ensuring a mutually beneficial business model.
“As the world’s largest consumer market, the U.S. heavily relies on imports for containerized cargo movement. A significant portion of containers transported inland from major ports — such as Los Angeles (West Coast), Savannah, and New York (East Coast) — often return empty due to limited export cargo.”
Boxlinks has secured direct agreements with Union Pacific (NYSE: UNP), Norfolk Southern (NYSE: NSC) and BNSF, Pantos said, creating a rail network connecting key logistics hubs at competitive freight rates.
Headquartered in Singapore, ONE is an ocean carrier alliance comprising Kawasaki Kisen Kaisha (K-Line), Mitsui O.S.K. Lines (MOL) and Nippon Yusen Kaisha (NYK), all of Japan.
LX Pantos is one of the world’s largest sea forwarders, posting revenue of $47 billion in 2023.
The companies said that since 2023 they have closely collaborated to develop a strategy for approaching the U.S. market. The companies quoted data from the Intermodal Association of North America valuing the U.S. intermodal market at $54 billion annually, with a projected compound annual growth rate of 10.9% through 2030.
“This strategic partnership will leverage the combined strengths of ONE and LX Pantos to provide end-to-end domestic intermodal transportation services, utilizing both companies’ partnerships with major rail carriers and trucking companies to provide efficient and timely delivery of cargo in the United States,” ONE said in its release.
Lee Yong-Ho, CEO of LX Pantos, said: “This joint venture will serve as a strategic foothold for our penetration into the United States, the world’s largest logistics market. We are committed to advancing our end-to-end logistics services by integrating international shipping with inland rail services, further strengthening our market position.”
The railroads did not immediately return messages seeking further details. The trucking companies were not identified.
