Ocean Network Express (ONE) has announced its financial results for the first quarter of fiscal year 2024 (FY2024).
Sales for the first quarter of FY2024 were $4.21 billion, up 12 per cent from the same period last year, with a net profit of $779 million (year-on-year + $266 million).
Cargo flows have improved due to rising consumer expenditure in North America and Europe.
Although additional vessel deliveries resulted in tonnage oversupply, the delayed rerouting through the Cape of Good Hope reversed the oversupply.
As a result of restricted supply and strong demand, spot freight rates climbed across numerous trade routes, including Asia-North America and Asia-Europe, compared to the fourth quarter of FY2023.
For the full-year forecast for FY2024, net profit guidance is revised to $2.74 billion from $1 billion which was announced on 30 April.
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.”
Recently, ONE announced an upgrade to its Korea-Vietnam-Thailand (KVT) service.