OCEAN Network Express has released its financial results for the first quarter of Japan’s 2024 financial year (April to June).
Revenue for the first quarter was up 12% against the same quarter in 2023, posting US$4.2billion, and a net profit of US$779 million, a 52% increase from the US$266 million posted in the first quarter 2023.
When compared to their FY2023 fourth quarter results, ONE had a 9% increase in overall revenue for the first FY2024 first quarter, and a 119% profit increase.
ONE, a Japanese company jointly owned by Japanese shipping lines Nippon Yusen Kaisha, Mitsui O.S.K. Lines, and K Line, said cargo movements have improved due to increased consumer spending in North America and Europe.
The line asserted that whilst new vessel deliveries have led to an oversupply in tonnage, prolonged rerouting through the Cape of Good Hope resulted in a reversal of oversupply.
This resulted in a spot freight rates increase compared to FY2023 fourth quarter, across multiple trade lanes including Asia to North America and Asia to Europe, due to tight supply and increased demand.
ONE’s full year forecast for FY2024 has been revised to a net profit guidance of US$2.74 billion from the US$1 billion that was announced on 30 April this year.
Jeremy Nixon, CEO of Ocean Network Express said, “The outlook, especially for the second quarter and beyond, is extremely uncertain.
“Also, it will take some time for the situation in the Middle East to normalise. ONE will monitor evolving conditions and maintain agile and efficient operations, with a focus on delivering high quality service to customers.”
