Image Credits: ITLN
Ocean Network Express (ONE) has updated its financial outlook for FY2024 following a strong performance in the first quarter. The company, headquartered in Singapore, reported revenues of $4.211 billion for the April to June period, marking a 12% increase from the previous year. Net profit surged to $779 million, up from $513 million year-over-year.
The quarterly results reflect a significant rise in cargo liftings, which reached 3,142,000 TEUs—an 11% increase from the same quarter last year and a 5% rise from the previous quarter. ONE attributed this growth to heightened consumer spending in North America and Europe, which has spurred demand for shipping services.
Despite an influx of new vessels leading to potential oversupply issues, ONE managed to balance the market through extended rerouting around the Cape of Good Hope. This strategy helped mitigate oversupply and resulted in increased spot freight rates, particularly on key trade routes between Asia and North America, and Asia and Europe. The company noted that tighter supply and rising demand have pushed up spot rates.
ONE’s optimistic performance led to a significant revision of its net profit forecast for the full fiscal year. The new guidance stands at $2.745 billion, a substantial increase from the previously projected $1 billion. CEO Jeremy Nixon highlighted the uncertainty surrounding the second quarter and the ongoing situation in the Middle East, which may affect future operations. Despite these challenges, Nixon emphasized ONE’s commitment to maintaining agile and efficient operations to deliver high-quality service.
Operating a fleet of over 240 vessels with a combined capacity exceeding 1.9 million TEUs, ONE was formed through the merger of the container shipping arms of Kawasaki Kisen Kaisha (“K” LINE), Mitsui O.S.K. Lines (MOL) and Nippon Yusen Kaisha (NYK).