SECOND quarter FY 2025 has proven rather disastrous for Ocean Network Express, with the carrier eking out profit of just US$285 million on revenue of US$4,455 million, respectively -86% and – 24% year-on year.
First half revenue was down 16% to US$1,571 million and profit down 87% to US$371 million. Needless to add, for both 2Q and 1H (reminder: Japan’s FY runs March to March) EBITDA and EBIT dived accordingly.
For both segments liftings were up 1%.
Putting a positive spin on things ONE CEO Jeremy Nixon said: “Our FY2025 2Q results underscore ONE’s resilience and stability in a challenging market. 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. 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.”
In notes to the results ONE said the freight in 2Q experienced fluctuations driven by tariff uncertainties despite steady cargo demand. Freight rates were significantly lower compared to the same period in the previous fiscal year.
The average rate in 2Q was slightly higher than in 1Q, although spot rates declined toward the end of the quarter. Cargo demand surged in July due to front-loading ahead of looming US tariff deadlines, especially on the Asia-North America trades.
Deliveries of new vessels continued through the first half, increasing global capacity, and persistent Red Sea rerouting partially absorbed available capacity, ONE said.
For the full-year forecast for FY2025, it is anticipated that the ongoing delivery of new vessels will persist throughout the fiscal year, affecting overall market conditions.
“Amid the situation in the Red Sea, this forecast is based on the expectation that vessels will continue to route around the Cape of Good Hope. The global environment remains subject to significant uncertainties, including potential impacts from tariffs and USTR actions.
“The overall market environment may not prove as robust as initially projected. ONE is committed to closely monitoring these global developments and will maintain operational flexibility to respond effectively to changing conditions.”