Ocean Network Express's 24,000-TEU megamax, ONE Innovation, carrying a world record 22,233 TEUs near Singapore. Photo courtesy Ocean Network Express
Ocean Network Express (ONE) has navigated choppy waters in its second quarter of fiscal year 2025 (July-September), reporting a net profit of $285 million on revenue of $4.455 billion despite significant market headwinds. ONE’s fiscal year runs April 1 through March 31.
The Singapore-based container shipping line faced a challenging quarter marked by freight rate fluctuations driven by tariff uncertainties and an oversupply of vessel capacity. However, a surge in cargo demand—particularly front-loading ahead of looming US tariff deadlines—helped buoy results.
Asia-North America eastbound trade saw remarkable growth during the quarter, with cargo demand surging in July as shippers rushed to move goods ahead of potential US tariff implementations. Transpacific volumes rebounded to reach record highs due to this intensive front-loading activity.
Despite increased liftings, utilization rates declined as new vessel deliveries continued to flood the market with additional capacity. The persistent oversupply led to a sharp decline in spot rates on major East-West trades during the quarter.
Cautious Outlook
“Our FY2025 2Q results underscore ONE’s resilience and stability in a challenging market,” said Jeremy Nixon, CEO of Ocean Network Express. “Despite the market fluctuations driven by geopolitical uncertainties, we delivered positive results and secured profitability for the first half of the fiscal year. We maintain a cautious outlook for the full year given current market dynamics”.
That caution appears well-founded. Following a $371 million profit in the first half of FY2025, ONE is now forecasting a full-year profit of just $310 million—implying a $61 million loss in the second half of the fiscal year.
Red Sea Rerouting Continues
Geopolitical risks in the Red Sea and Gulf of Aden continued to force vessels to route around the Cape of Good Hope, partially absorbing some of the excess capacity in the market. ONE’s full-year forecast assumes this rerouting will persist throughout the fiscal year.
The carrier has maintained countermeasures to minimize supply chain disruptions caused by these geopolitical uncertainties while implementing flexible measures to address port congestion in various regions.
Nixon emphasized the company’s commitment to operational flexibility: “We will continue to take steps to adapt our network and optimize our fleet, ensuring we meet market demands and provide customers with long-term reliability”.
ONE has been continuously reviewing its cargo portfolio and vessel deployment to enhance yield management and maximize profitability, while closely monitoring the uncertain US tariff situation and USTR policy developments.
The global environment remains subject to significant uncertainties, and ONE acknowledges that the overall market environment may not prove as robust as initially projected.
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