Softer freight volumes and weaker rates saw Ocean Network Express suffer a net loss of $88 million on revenue of $4.074 billion in the third fiscal quarter of 2025.
In Q4 the carriers expect a recovery of cargo volumes and an uptick in rates, and a continuation of vessels diverting away from the Red Sea-Suez Canal and around the tip of Africa.
“Our 3Q FY2025 results reflect a challenging operating environment as we continue to navigate the complexities of the current global landscape,” said Jeremy Nixon, chief executive of Singapore-based Ocean Network Express, in a release. “Although market dynamics have impacted our performance during the quarter, we remain focused on disciplined capacity management, cost control, and ongoing network optimization to enhance operational resilience. By leveraging strategic partnerships, we reinforce a reliable service network to better serve our customers.”
ONE comprises Japanese carriers Nippon Yusen Kaisha (NYK) (OTC: NPNYY), Mitsui O.S.K. Lines (MOL) (OTC: MSLOY), and Kawasaki Kisen Kaisha (K Line) (OTC: KAIKY).
“Persistent increase in supply from new vessels and slow cargo movement, particularly on Asia-North America trade, led to a year-on-year decline in short term freight rates,” the company said. The Asia–North America trade slowed due to frontloading in the first half of the year as shippers looked to avoid U.S. tariffs. “Short-term freight rates remained lower than the same period last year,” it added.
Earnings before taxes, interest, depreciation and amortization (EBITDA) fell to $1.2 billion from $2.4 billion y/y, while earnings before interest and taxes (EBIT), or operating margin, were lower at $667 million from $1.9 billion.
Volume on the eastbound Asia-U.S. trade decreased to 673,000 twenty foot equivalent units from 730,000 TEUs. Asia-Europe westbound volumes were 434,000 TEUs from 451,000 TEUs in the year-ago quarter. Total traffic fell to 1.62 million TEUs from 1.64 million TEUs.
The average rate per container on Asia-U.S. services fell by 40 basis points while Asia-Europe trades were weaker by 42 basis points.
ONE operates more than 260 vessels with capacity exceeding 2 million twenty foot equivalent units, ranking it sixth among global liners.
Find more articles by Stuart Chirls here.
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