JAPAN-owned, Singapore-based Ocean Network Express (ONE) has tripled its full-year profit expectations after seeing a strong turnaround in the first quarter of its financial year.
For the period from 1 April to 30 June 2026 ONE generated revenue of US$4,539 million and recorded a net profit of US$31 million.
EBITDA was US$707m, with a margin of 15.6%, slightly lower than previous periods. Operating costs rose mainly due to higher fuel prices caused by Middle East conflicts. And cargo volumes grew significantly, especially in Transpacific and Asia-Europe trades.
Till Ole Barrelet, CEO of Ocean Network Express after replacing retiring CEO Jeremy Nixon, said the first quarter reflected a demanding market, with Middle East disruption raising fuel and operating costs across the industry.
“As demand recovered through the quarter, we improved yields and maintained high utilization,” Mr Barrelet said. “We have raised our full-year forecast and remain focused on operational agility as conditions evolve. This reflects the dedication of our global team and the steady progress of our ONE2030 strategy.
“As market uncertainties persist, our priorities are protecting our people and assets, ensuring service reliability for our customers, and delivering sustainable long-term value for our stakeholders.”
ONE has lifted its full-year profit forecast from US$300m to $900m, reflecting the recent increase in freight rates and strong cargo demand.
“Spot freight rates have remained on an upward trend since the first quarter. Backed by solid cargo demand, higher freight rate levels are expected to persist particularly through the second quarter across various trades,” ONE said. “Despite adjusting our second half outlook for higher fuel costs, the first half profit has been substantially revised upward from the previous guidance.
“With the situation in the Strait of Hormuz still dynamic, our latest forecast assumes that operating conditions stabilize to pre-conflict levels in October; and that Cape of Good Hope rerouting continues for the full fiscal year.”
Drilling into the Q1 results ONE carried 3,257,000 TEU at an average rate of US$1,300 per TEU.
Cargo demand shifted significantly over the quarter, from a mixed demand environment in April to a sustained recovery in May and June.
In particular, cargo volumes from China increased, supported by front-loading ahead of expected fuel surcharge hikes, potential tariff changes, and inventory restocking, which drove robust demand in the Transpacific trade. The Asia-Europe trade also continued to recover.
The global fleet expanded by more than 300,000 TEU during the quarter, bringing total capacity to over 34 million TEU. However, disruptions in the Strait of Hormuz and persistent port congestion absorbed part of the newly added capacity, limiting the effective increase in market supply.
Supported by strong cargo demand, supply-demand conditions tightened, and freight rates continued to trend upward across various trade lanes. On the Asia-Europe trade, persistent port congestion constrained capacity and tightened conditions further.