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Ocean Network Express’ profit jumped 52% to $779 million in the first quarter compared to the same period last year
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Revenues of $4.211 billion rose 12%
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ONE noted improved cargo movements driven by increased consumer spending in North America and Europe during the period in review
Ocean Network Express (ONE) net profit soared 52% to $779 million in the first quarter of the year from the same quarter last year while revenues of $4.211 billion grew 12%.
In a statement, ONE noted cargo movements have improved due to greater consumer spending in North America and Europe. “Although new vessel deliveries have led to oversupply in tonnage, prolonged rerouting through the Cape of Good Hope resulted in a reversal of oversupply. As a result, spot freight rates increased compared to 4Q FY2023, across multiple trade lanes including Asia – North America and Asia – Europe due to tight supply and increased demand,” the company said.
In light of the solid first-quarter performance, ONE revised its full-year net profit forecast for FY2024 to $2.745 billion, up from the projected $1 billion announced in April.
“The outlook, especially for the 2nd quarter and beyond, is extremely uncertain. Also, it will take some time for the situation in the Middle East to normalize. ONE will monitor evolving conditions and maintain agile and efficient operations, with a focus on delivering (high-quality) service to customers,” Jeremy Nixon, chief executive officer of ONE, said.
Headquartered in Singapore, ONE operates a fleet of over 240 vessels with a capacity exceeding 1.9 million twenty-equivalent units. The company was established by integrating the container shipping businesses of Kawasaki Kisen Kaisha (“K”LINE), Mitsui O.S.K.Lines (MOL), and Nippon Yusen Kaisha (NYK).
