OCEAN Network Express (ONE) reported a second-quarter net profit of $1.999 billion, up 969 percent from last year’s same quarter, driven by strong cargo movement and early peak season demand.
Cargo movements from Asia to North America increased by 18 percent year on year in July and August. ONE attributes this growth to robust domestic consumption in the United States, prompting customers to advance shipments in anticipation of potential supply chain disruptions.
In the Asia-Europe trade, cargo movements rose by 6.4 percent in July, fueled by easing inflation and a gradual pickup in personal consumption.
ONE anticipates a profit of $3.095 billion for the full year of 2024, though forecasting remains challenging due to the unpredictable nature of global shipping. PHOTO FROM ONE OCEAN NETWORK
However, the supply-demand balance shifted toward the end of the second quarter, with signs that cargo movement may slow in September as early shipments for the year-end sales season begin to settle.
Geopolitical instability continues to challenge the shipping industry. ONE reported that “rerouting vessels around the Cape of Good Hope (CoGH) persists due to the unstable geopolitical situation.”
Port congestion remains across North America, Europe and Asia, influenced by adverse weather conditions, strikes and inland rail transportation issues.
In response, ONE has deployed extra loaders to manage increased demand and alleviate backlogs in congested ports.
ONE anticipates a profit of $3.095 billion for the full year 2024, though forecasting remains challenging due to the unpredictable nature of global shipping.
“While the geopolitical uncertainty remains, continuous delivery of the new container vessels impacts supply-demand situations,” ONE said.
ONE’s second-quarter results highlight the importance of strategic adaptability and proactive measures.
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