ONE profit zooms on consumer demand, early peak season

Ocean Network Express (ONE) reported a 65 percent increase in revenue at $5.9 billion for the quarter ended September 30, 2024 on consistent consumer demand and an early peak season in July and August.

Net profit zoomed to $2 billion compared to $187 million in the same period last year, says an official release.

"Cargo movements from Asia to North America in July and August increased by 18 percent year-on-year, and cargo movements from Asia to Europe increased by 6.4 percent in July. While personal consumption is picking up with the easing of inflation, there is a tendency for cargo movement to slow down in September as early shipments for the year-end sales season calms down.

"The outlook for the Red Sea and the Suez Canal remains uncertain. Meanwhile, operations at the Panama Canal have almost returned to normal as water levels have recovered.

"Concerns about supply chain disruptions due to possible strikes at U.S. East Coast and Gulf ports have led to some cargo being shifted to U.S. West Coast ports."

For the first half of 2024, ONE reported a 38 percent increase in revenue at $10.1 billion and net profit zoomed 300 percent to $2.8 billion.

Jeremy Nixon, CEO, Ocean Network Express says: "In addition to the current geopolitical situation, the industry faces added uncertainty around the final outcome of the USA elections and USEC port labour situation. ONE will continue to closely monitor evolving macro conditions and maintain an agile and effective control of its global operations and customer service delivery performance including a successful launch of the new Premier Alliance E-W network from January.”

2024 outlook
For the full year FY2024, ONE has increased its net profit guidance to $3.1 billion from $2.7 billion announced on July 31, the release added.