Liner operator Ocean Network Express (ONE) and South Korean freight forwarder LX Pantos announced the formation of Boxlinks, a joint venture to provide end-to-end U.S. domestic multimodal transportation services.

The joint venture will manage ONE's inland to coastal domestic transportation needs through the Domestic Repositioning Program (DRP).

"By using empty boxes for intermodal transport, Boxlinks aims to create new revenue streams while improving operational efficiency," LX Pantos said. "This initiative aims 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 United States relies heavily on imported containerized cargo transportation. Due to limited export cargo, a large proportion of containers shipped inland from major ports such as Los Angeles (West Coast), Savannah and New York (East Coast) tend to return by air."

Boxlinks has entered into direct agreements with Union Pacific Railway (NYSE: UNP), Norfolk Southern Railway (NYSE: NSC) and BNSF to build a rail network connecting major logistics hubs at competitive freight rates.

Headquartered in Singapore, ONE is an ocean shipping alliance consisting of Japan's Kawasaki Steamship Corporation (K-Line), Merchant Marine Mitsui (MOL), and Japan Mail Line (NYK).

LX Pantos is one of the world's largest ocean freight forwarders with $47 billion in revenue in 2023.

The two companies said they have been working closely since 2023 to develop a strategy to enter the U.S. market. The companies cited data from the North American Intermodal Transportation Association, which estimates the U.S. intermodal transportation market to be worth $54 billion annually, with a projected compound annual growth rate of 10.9 percent through 2030.

"This strategic partnership will leverage the combined strengths of ONE and LX Pantos to provide end-to-end domestic intermodal transportation services, leveraging both companies' partnerships with major rail carriers and trucking companies to deliver goods efficiently and in a timely manner across the United States," ONE said.

LX Pantos CEO Yonghao Lee said: "This joint venture will be our strategic foothold into the US, the world's largest logistics market. We are committed to further consolidate our market position by advancing our end-to-end logistics services by combining international shipping with inland rail services."

The railroad did not immediately return messages seeking further details. The name of the trucking company was not disclosed.

Hiroki Tsujii, ONE's global chief officer and head of product and networking, said in a press release: "With Boxlinks, we are changing the way we deliver value in the United States. We will build a more resilient and agile inland network, which will benefit our customers in the domestic market."