What's Happening?
Ocean Network Express (ONE) has reported a net loss of $88 million for the third quarter of FY2025. This downturn is attributed to persistent fleet growth and slower cargo movement, which have negatively impacted short-term freight rates, particularly in the Asia–North America trade. The company's revenue for the quarter ending December 31, 2025, was $4.07 billion, marking a 16% decrease from the previous year. EBITDA also fell significantly to $536 million from $1.58 billion in the same quarter of FY2024. Despite cargo liftings remaining stable at 3.25 million TEU, the earnings were affected by rate pressure and cost dynamics rather than volume contraction. Bunker prices averaged $489/mt, providing some relief, but were offset by higher ship-related
and port costs. The company has maintained its full-year profit forecast of $310 million, expecting a modest recovery in cargo volumes and freight rates in the fourth quarter.
Why It's Important?
The financial performance of Ocean Network Express is a reflection of broader challenges in the global shipping industry, particularly the imbalance between supply and demand due to new vessel deliveries. The decline in freight rates and increased operational costs highlight the volatility in the shipping market, which can affect global trade flows and economic stability. The company's strategic focus on capacity management and cost control is crucial for maintaining competitiveness. The situation also underscores the impact of geopolitical factors, such as U.S. tariff policies, on international trade routes and shipping dynamics.
What's Next?
Ocean Network Express plans to continue monitoring geopolitical developments and U.S. trade policies while maintaining flexible vessel deployment and cost discipline. The company is also preparing for the rollout of the Premier Alliance’s 2026 East–West network, which aims to stabilize service structures and improve competitiveness. The ongoing fleet expansion, with a focus on larger tonnage, will shape the company's future earnings environment. The strategic adjustments in port calls and service rotations are expected to enhance schedule reliability and yield management.
