ONE posts $4.2b profit in FY2024 despite market challenges

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Ocean Network Express (ONE) posted a strong financial recovery in FY2024, recording a full-year profit of $4.244 billion, a significant increase from the previous year. This improvement comes despite spot freight rates trending downward after the Lunar New Year, primarily due to vessel oversupply and a delayed demand recovery.

During FY2024, cargo demand remained relatively strong overall, although weaker activity on key east-west routes was observed in the latter part of the year. The continued rerouting of vessels around the Cape of Good Hope (CoGH), along with global port congestion, absorbed some of the vessel surplus and supported stable utilization levels through most of the year.

Liftings increased 6% year-on-year to 12.75 million TEU. Utilization on Asia–North America eastbound and Asia–Europe westbound routes remained at or near 100% for most of the second half. However, utilization on westbound routes from North America and Europe lagged behind, averaging 40% and 46%, respectively.

Freight rates, while lower in Q4 compared to Q3, remained higher than the same quarter in FY2023. The Asia–North America eastbound freight index rose to 153, while the Asia–Europe westbound index increased to 211 in Q4, up from 135 and 183 respectively in the previous year.

Total revenue reached $19.2 billion, up 32% from FY2023. EBITDA more than doubled, rising 192% to $5.97 billion, while EBIT increased by 871% to $3.8 billion. Fuel prices declined slightly to an average of $570/MT, while bunker consumption rose 9% to 3.76 million metric tons.

Looking ahead, ONE forecasts a full-year FY2025 profit of $1.1 billion under a stable scenario (Case 1). However, in a more adverse environment (Case 2), profits could drop to just $250 million. Ongoing geopolitical risks and recent tariff developments have introduced significant uncertainty, prompting the company to establish a dedicated task force to monitor global economic shifts.

Cargo movement in early 2025 showed a strong year-on-year increase, with Asia–North America volumes up 13.4% and Asia–Europe volumes up 20.2% in January. However, post-Lunar New Year demand has weakened, leading to vessel oversupply.

In response, ONE is focusing on operational efficiency, portfolio management, and supply chain stability amid port congestion and Red Sea disruptions. The company continues to manage its transition within the Premier Alliance to minimize customer impact.

To view the full report, click here.

For more information:
Ocean Network Express
Tel: +852 5808 0260
www.one-line.com

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