Ocean Network Express (ONE), the world’s sixth-largest ocean carrier by capacity, has reported a remarkable financial performance for Q2 of FY2024 (July to September), with revenue climbing to $5.9 billion—a 65% increase year-over-year.
The company’s net profit rose even more dramatically, reaching $2 billion, a staggering 1000% increase from the same period last year.
ONE attributes this robust growth to strong demand in Asia-North America and Asia-Europe routes, spurred by steady consumer demand and an early peak shipping season. Early shipments in North America were also boosted by concerns over potential supply chain disruptions, further driving volumes.
Despite these strong results, the company faces challenges as it continues to reroute vessels around the Cape of Good Hope due to Houthi attacks on shipping.
Moreover, a softening in overall supply-demand dynamics toward the end of the quarter, due in part to rising global capacity, adds further complexity to ONE’s outlook.
In response to its strong Q2, ONE has revised its full-year profit forecast for FY2024, raising it from $2.7 billion to $3.1 billion.
However, CEO Jeremy Nixon expressed caution over future market conditions, noting that geopolitical tensions, the upcoming U.S. elections, and East Coast port labour issues could impact the industry in the coming months.
“ONE will continue to closely monitor evolving macro conditions and maintain agile, effective control over its global operations and customer service performance,” Nixon said.
Copyright Ships & Ports Ltd. Permission to use quotations from this article is granted subject to appropriate credit given to www.shipsandports.com.ng as the source.
