OCEAN Network Express’ first-quarter results for the 2021 financial year showed a tremendous increase in profits for the container line.

The company reported US$2.559 billion in profits for the quarter – an increase of 1432% on the same period last year. Its EBITDA and EBIT for this past quarter were US$2.924 and US$2.657, respectively.

The increase in profits are off the back of a growth of global container volumes of about 20%, according to ONE.

The company said its vessel utilisation was at full capacity over the quarter.

In its results announcement, the company said there is excessive strain on the entire global supply chain

“Asia-North America trade market volume from January to June increased by 40% year-to year, and by 27% compared to the same period of FY19, before the COVID-19 pandemic. The average growth ratio from 2016 to 2020 was around 4%,” the company said.

It pointed out that strong cargo demand and labour shortages have resulted in longer port stays, port congestion and heavy rail and truck traffic. Also, increased container dwell times occurred due to truck and chassis shortages, according to the company.

“Whilst the current demand is rapidly increasing, the excessive strain on the entire global supply chain triggered by operational restrictions resulting from COVID-19 pandemic still remains,” the company said.

Under these circumstances, the company said it expects a profit after tax of about US$6 billion for the FY21 1H.