Setting Sights on Future Horizons: A Conversation on Digitalization and Sustainability
In April 2018, Ocean Network Express (ONE) set sail into the challenging waters of the containership market from its Singapore headquarters. At that time, the industry was grappling with a downturn, and Jeremy Nixon, the CEO, reminisces about the initial hardships: “The first six months were a series of challenges. We were understaffed.” Fast forward to the present, amidst the turbulence of the COVID-19 pandemic, ONE not only weathered the storm but also secured consecutive after-tax profits of 2 trillion yen for two fiscal years. How did Mr. Nixon orchestrate this turnaround?
Marina ONE East Tower
As I ascended to the 16th floor of the ONE headquarters, I was greeted by a meticulously designed office space resembling a Scandinavian shipping company, as explained by Mr. Toshikazu Shiomi, from the Corporate Strategy & Sustainability Department Finance. In the vibrant meeting room, Mr. Nixon, a seasoned maritime professional, exuded strength as he anticipated a dip in 2023’s business performance due to the containership market slump.
“This year marks five years since ONE’s inception. While the initial phase was challenging, we achieved profitability from the second year onwards. Now, securing two consecutive years of 2 trillion yen in after-tax profits in 2022 and 2023 showcases our resilience.”
In the April-June 2023 period, ONE’s after-tax profit was $500 million, down 90% from the previous year. When questioned about future plans, considering the market downturn, Mr. Nixon remarked, “The containership market fluctuates, much like the world economy affecting oil prices. We possess the scale to endure these variations and are strategically investing in less volatile areas, such as container terminals.”
Having navigated the seas from a sailor to a maritime businessman, Mr. Nixon’s extensive experience includes the volatile containership market, a crucial aspect considering the vessels in operation. ONE has chartered containerships from major shipping companies. Regarding the fleet development policy, Mr. Nixon emphasized, “The initial years were unpredictable. Now, our strategy involves consistent annual investments based on thorough research, ensuring long-term price competitiveness. Technology follows the same principle; we aim to own or charter out 80% of our vessels in the long term.”
Digital and Green Initiatives
Reflecting on ONE’s recent fleet expansion with 54 new vessels ordered in the last three years, Mr. Nixon envisions the next five to six years with digitalization and sustainability at the forefront of their business strategy.
“ONE is committed to a net-zero green target by 2050, predating the IMO’s decision. Digitalization is equally pivotal with 28,000 customers and over 1,000 business partners. We are heavily investing in advanced database management methods to stay at the forefront of technology.”
While focusing on a forward-looking strategy, Mr. Nixon acknowledges the importance of human resources. With 11,000 employees worldwide, effective communication is key to sustaining growth. “Constant communication with employees is crucial, and media presence helps internalize the company’s policies.”
Concluding the interview, Mr. Nixon shared insights on new fuels, considering the industry’s shift. “We are exploring methanol and carbon capture. Challenges include methanol availability and the efficiency of carbon capture processes. Our green strategy team and collaboration with the Singapore Global Center for Ocean Decarbonization are integral to finding the best way forward.”
Despite market challenges, ONE, under the leadership of Jeremy Nixon, sails into the future, emphasizing sustainability and innovation as cornerstones of its continued success.
Biography
Jeremy Nixon serves as the Global CEO of Ocean Network Express (ONE), a liner shipping company headquartered in Singapore. His illustrious career spans thirty years in the container shipping industry, with senior management roles at P&O Nedlloyd, Maersk Line, and NYK Line across Europe, North America, and Asia. Jeremy joined the NYK Group in 2008, eventually heading Ocean Network Express in 2017, a joint venture founded by K Line, MOL, and NYK Group companies.