ONE Profit Plunges 92% as Geopolitics and Overcapacity Squeeze Earnings

Singapore-based liner giant Ocean Network Express reported a modest but resilient profit for fiscal year 2025, navigating weak cargo demand, rising capacity, and mounting geopolitical disruption across key trade lanes.

The company posted full-year revenue of $16.6 billion and net profit of $338 million for the period ending March 2026, down 14% and 92% compared to the previous year, respectively. Fourth-quarter revenue reached $4.04 billion, with profit of $55 million, a 82% drop yoy, as rates showed a late recovery despite sluggish cargo volumes.

CEO Jeremy Nixon credited disciplined cost control and operational efficiency for keeping the carrier in the black amid what he described as a “complex and volatile global environment.”

“Despite heightened volatility in the fourth quarter, our disciplined cost control and operational efficiency enabled us to deliver a profitable full-year result,” Nixon said.

Weak Demand, Rising Supply

ONE’s results reflect broader industry headwinds. Cargo demand remained subdued through much of the year, particularly on transpacific trades, while newbuild deliveries continued to swell global fleet capacity.

The Asia–Europe route provided a relative bright spot, with steady volumes ahead of Lunar New Year helping offset weakness elsewhere. At the same time, ONE said port congestion and severe weather disruptions offered limited support to freight rates by tightening effective capacity, particularly late in the fiscal year.

Like its peers, ONE continues to absorb rising costs tied to geopolitical instability, especially in the Middle East where restrictions on transits through the Strait of Hormuz continue. However, the company said the direct impact on fourth-quarter earnings was limited.

The outlook is far more uncertain. ONE said persistent instability has also clouded any meaningful return to Red Sea–Suez Canal routing, with vessels continuing to divert around the Cape of Good Hope, adding time and fuel costs.

ONE expects to remain profitable in FY2026, forecasting net income of around $300 million. But that outlook hinges on the key assumption that conditions in the Middle East stabilize by mid-year. The company warned that ongoing disruption in the Strait of Hormuz and broader regional tensions will continue to pressure costs and network reliability, even as it pushes to maintain service levels.

Editorial Standards · Corrections · About gCaptain

Subscribe for Daily Maritime Insights

Sign up for gCaptain’s newsletter and never miss an update

— trusted by our 106,406 members