Ocean Network Express (ONE) released its financial results for the first quarter of FY2024, covering April to June 2024.
The revenue for this quarter was US$4.211 billion, representing a 12% increase from the same period last year, with a net profit of US$779 million, an increase of US$266 million year-over-year.
Cargo movements improved due to increased consumer spending in North America and Europe, said ONE in its report. While delivering new vessels initially led to an oversupply in tonnage, prolonged rerouting through the Cape of Good Hope reversed this oversupply.
The Singaporean box carrier moved 3,142,000 TEUs in the April – June 2024 period, representing an 11% growth compared with the same period last year.
Consequently, spot freight rates rose compared to the fourth quarter of FY2023 across multiple trade lanes, including Asia-North America and Asia-Europe, due to tight supply and increased demand.
The full-year net profit forecast for FY2024 has been revised to US$2.745 million, up from the previous guidance of US$1 billion announced on 30 April.
“The outlook, especially for the second quarter and beyond, is extremely uncertain. Also, it will take some time for the situation in the Middle East to normalize. ONE will monitor evolving conditions and maintain agile and efficient operations, with a focus on delivering high quality service to customers,” stated Jeremy Nixon, CEO of Ocean Network Express.
