JAPAN’s Ocean Network Express has completed its 2024 financial year (April 2024- March 2025) in fine form but as with many contemporaries is very cautious about the year ahead.
The Singapore-headquartered ONE saw revenue rise 32% from the prior year, to USD 19,233 million, while EBITDA increased 192% to USD 5,970 million and net profit quadrupled to USD 4,242 million.
ONE lifted 12.8 million TEU in FY 24, up 6.1%, and the average freight rate rose from USD 1,209/TEU to USD 1,508/TEU.
However, the fourth quarter of ONE’s FY – i.e. January-March 2025 – saw momentum slow after a strong third quarter and contributed to a gloomier outlook for the 2025 FY with the company forecasting NPAT potential as low as USD 250 million.
However, baseline FY2025 full-year profit after tax forecast stands at approximately US$1,100 million, predicated on an assumption of a relatively stable business environment throughout the fiscal year.
CEO Jeremy Nixon said the 2024 profit of $4,244 million was realised despite ongoing geopolitical tensions and regional economic uncertainties.
“Through our participation in the newly established The Premier Alliance, launched in February, along with various other service partnerships, we have further expanded our global network and enhanced our service offerings to better meet customers’ evolving needs. We remain fully committed to delivering strong, reliable, and highly dependable end-to-end direct port container services to our valued customers,” Mr Nixon said.
ONE noted that extended rerouting of vessels round the Cape of Good Hope and port congestion absorbed surplus vessel capacity and overall cargo movement remained stable.
But since the Lunar New Year, weakness has been particularly noticeable on east-west routes, with recovery lagging. As a result, the freight rates have continued to trend downward since the Lunar New Year.
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