Japan’s container shipping line Ocean Network Express (ONE) reports record profit in the first quarter of 2022, Alphaliner reports.
Japan’s Ocean Network Express (ONE) posted record profits in the first quarter of 2022 after spot freight rates beat expectations, and ongoing “turbulence” within the global supply chain kept supply tight and demand, mentions the maritime statistics consultancy Alphaliner.
January-March net profit reached $5.1 billion, up 4.5% from the last quarter of 2021. Similar quarterly increases in revenue were posted, up 1.2% to $8.4 billion, and operating profit (EBIT), which was 4.1% higher than the previous three months at $5.2 billion, Alphaliner reports.
Despite the Chinese Lunar New Year, the war in Ukraine and the latest Chinese lockdown, cargo demand, particularly for consumer goods, remained high. Meanwhile, the Japanese liner said freight rates increased compared to the previous quarter, in part due to renewals of long-term contracts, Alphaliner says.
Cargo operations on Eastbound Asia-North America services fell in the first three months of the year due to blank voyages caused by port congestion. However, vessel utilization remained close to 100% due to strong cargo demand.
Movements in westbound Asia-Europe trade were broadly unchanged compared to the previous quarter, although utilization rates were affected by outbound itinerary disruptions.
ONE reports that congestion had eased at the key ports of Los Angeles and Long Beach, but worsened at other West Coast ports. Congestion had also increased at US East Coast ports such as New York and Charleston.
The result shows that ONE, following the Japanese fiscal year, exceeded the company’s forecast for the April-March period by 40%, or $4.7 billion.
According to Alplaliner, ONE refrained from issuing an earnings forecast for fiscal 2022, citing several factors contributing to a “dynamically changing” economic environment. These included hostilities in Ukraine, China COVID lockdowns, inflation, and US West Coast labor negotiations.