OCEAN Network Express has reported a 46% decrease in revenue for the third quarter of 2023.

The carrier’s third-quarter EBITDA dropped 94% compared with the same reporting period in 2022, and its EBIT plunged by 109%.

ONE said sluggish consumption growth, a decrease in cargo movement during low season and an influx of new ships contributed to further softening of the supply and demand trend and low-level, short-term freight rates.

“The third quarter concluded with a deficit of US$83 million, a significant decrease compared to the same period last year,” it said.

“The increase in the number of new ship deliveries continued to boost the supply side, but ONE made efforts to implement blank sailings sufficiently and streamlined services.

“Freight rates increased in December, however on average they remained at a low rate for the entire quarter due to sluggish rates in October and November.”

ONE expects its full-year results for the 2023 financial year to show a profit after tax of US$856 million, a decrease from the previous year “due to the deterioration of the freight market”.

“Despite the positive trend in cargo movements, low consumer demand due to prolonged stagnation is not supporting a strong recovery of cargo movements,” ONE said.

“It is expected that it will take some more time for marine transport cargo movements to fully recover.”

ONE said supply and demand outlook and freight market conditions are “extremely uncertain”, but it intends to focus on maximising profit by flexible tonnage deployment and efficient equipment control based on demand.