The logistics arm of Japanese shipping company Mitsui O.S.K. Lines formed a partnership with California-based NEXT Trucking to make it easier for overseas companies to ship cargo to final distribution destinations in the United States, the companies said.
The logistics arm of Mitsui O.S.K. Lines (MOL) and NEXT Trucking said they have entered into a strategic partnership that will make it easier for overseas companies to ship cargo to final distribution destinations in the U.S. by providing what they said will be a “seamless integrated platform.”
The two companies said they will offer overseas customers a one-stop solution for the drayage, warehousing and delivery of their goods in the U.S. through the NEXT Trucking E-commerce solution.
The product will allow small and medium e-commerce vendors to consolidate goods in China, as well as share container freight and trucking costs.
The companies said shippers will also gain end-to-end shipment transparency as the cargo moves from the port to distribution centers.
While MOL’s container shipping business is entering into a new joint venture called Ocean Network Express (ONE) with fellow Japanese carriers NYK and “K” Line in April, MOL’s other businesses, such as bulk and shipping and logistics, will continue to operate independently.
MOL’s logistics business operates under the names of both MOL Logistics and MOL Consolidation Services.
T.K. Konishi, the chief executive representative, Americas for MOL, explained that one of MOL’s core businesses in the U.S. is consolidation services for U.S. retailers. These include companies in sporting goods, in the arts and crafts business such as Michael’s, and footwear such as Steve Madden.
“We consolidate their merchandise in China or India and then ship it to the U.S.,” he explained.
“We had been looking for a desirable partner in California, which can give us deconsolidation capability, and we came across IDC Logistics, which is the sister company of NEXT Trucking,” Konishi added. “We think by joining forces, MOL Group can help NEXT Trucking and IDC to consolidate the merchandise of small and medium sized enterprises in China and then ship them to the U.S.”
Merchandise would come into an IDC warehouse and then use NEXT trucking services to arrange shipment to distribution centers in the U.S.
Lidia Yan, the chief executive officer of NEXT, said although her company does work with drayage companies and LTL as well, its main focus is full truckload freight, mostly moving freight in California or nearby states.
NEXT claims to be a “trucker-centric” service where truckers dictate what kind of freight they are seeking and where they want to go before connecting with shippers.
NEXT, which is headquartered in Lynwood, Calif., near the ports of Los Angeles and Long Beach, said its service is aimed at owner operators and small trucking companies.
“There are a lot of warehouses in Los Angeles and a lot of freight that needs to go out to other states,” said Yan.
Yan said NEXT believes that its service can help solve the driver shortage in the trucking industry because “truckers can really take the kind of loads that they want from our platform.”
She said the NEXT app has two functions. With the first, truckers can specify their availability and shippers will purchase their capacity. With the second, shippers tender their loads and NEXT polls surrounding drivers or drivers who prefer that route are selected on a first come, first serve basis.
The primary difference between NEXT and traditional load boards is that loads are usually posted by brokers, Yan explained. She said they sometimes don’t provide the correct price, but give a higher price to attract drivers to call in, then negotiate with multiple drivers to get a lower price. Loads are sometimes awarded because of a driver’s existing relationship with a broker.
“We wanted to make it fair and transparent,” she said.
Konishi said the shortage of truck drivers is not only a problem in the U.S., but also in many other developed countries in Europe as well as in Japan.
