OCEAN Network Express reported a record profit of US$16.8 billion for the 2021 financial year – this was an increase of US$13.3 billion, or 381%, on the previous year.
ONE’s revenue for the year came to US$30 billion, which was up 109% on the previous year.
While the ocean line’s profits skyrocketed, its lifting remained flat, increasing just 1% to 12 million TEU in 2021 compared with the previous year. Also over the period, the company reported a 54% increase in its bunker price.
Commenting on the results, ONE CEO Jeremy Nixon said the company’s 2021 profit performance was “strong” and “exceptional”.
“Financials were consistently ahead of forecast over the entire year, and this was the third year of consecutive profitability,” he said.
“The outlook for the rest of 2022, however, remains cautious as there are still many trading uncertainties ahead in addition to further expected economic headwinds. Additionally, there is still a strong need for further investment in decarbonisation and digitalisation over the course of 2022 and beyond.”
Mr Nixon said ongoing trade developments and recent geo-political events are still creating operational bottlenecks in many parts of the world.
“Of late, the PRC has imposed many local restrictions and measures due to the recurrence of COVID-19. This has impacted on factory production, warehouse, depot, trucking and port operations,” he said.
“We also continue to witness significant congestion in the Northern European hub ports due to sanctions on Russian way-port cargo, whilst North America port and landside logistics still remain heavily congested.
“Further challenges remain on the US West Coast where collective bargaining negotiations over labour contracts with the International Longshore and Warehouse Union are commencing shortly. All these factors are resulting in ongoing industry delays to vessels and increased schedule voiding and port omissions.”
Mr Nixon said ONE operations in Ukraine and Russia have been “significantly impacted” due to the ongoing war in Ukraine.
“We have stopped all bookings via the Baltic and Black Sea gateways to Ukraine and Russia, whilst our Far East Russia services have been very significantly cut back due to the international sanctions,” he said.
“Overall Russia/Ukraine account for less than 1% of ONE’s global volumes. However, a number of our customers’ supply chains have been temporarily impacted due to sudden changes in their local production and sourcing requirements.
“We have also witnessed a significant adverse impact on global energy prices, including major increases in bunker fuel costs. Vessel charter hire costs remain at unprecedented high levels.”
