Ocean Newtork Express reported record profit of $5.5 billion in the first quarter of 2022, more than doubling its profit from the same period last year.
ONE said freight rates remained firm despite some softening in supply-demand conditions. Global cargo demand in the second quarter remained steady, with no major breakdown despite the impact of the Shanghai’s lockdown and the Ukraine crisis, ONE said.
On the supply side, port congestion showed signs of improvement in some areas, but supply chain disruptions continued around the world, including deterioration on the east coast of North America. As a result, freight rates remained “significantly higher” than those in the same period last year, increasing ONE’s quarterly profit amount by $2.9 billion of 115%.
Looking at full year forecasts, ONE is holding off on making an estimate citing uncertainties related to continued strain on global supply chain, bottlenecks, COVID-19 impacts and policies, ILWU labor negotiations on the U.S. West Coast, and the Russian/Ukraine crisis.
ONE was formed in 2017 through the integration of Japanese shipping lines ‘K’ Line, MOL and NYK. It currently ranks as the world’s 7th largest ocean carrier, with a fleet size of 1,505,181 TEU and 205 ships, including 35 ultra-large containerships.
ONE saw a record profit of $16.8 billion in 2021, up from $3.4 billion in 2020 and $105 million in 2019 following a $586 million loss in 2018—its first year of operations.
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