Ocean Network Express posts US$4.2B profit in 2024, warns of sharp drop in 2025
The container shipping company says its earnings may fall to $1.1 billion or lower due to market uncertainty and weaker demand.
SINGAPORE – Ocean Network Express (ONE) reported a net profit of US$4.2 billion for the financial year 2024, marking a 336 percent rise from the previous year.
The boost came as the company handled 12.7 million twenty-foot equivalent units (TEUs), up six percent from 2023. Revenue also jumped to US$19.2 billion, compared to US$14.5 billion the year before.
“Freight rates remained stable amid strong cargo demand,” said the company in an official release. “However, following the Lunar New Year, spot rates began to decline due to delayed demand recovery and vessel oversupply.”
Jeremy Nixon, CEO of ONE, highlighted the importance of partnerships and network growth in achieving the strong performance.
“We are pleased to report a profit of US$4.2 billion for FY2024 – an achievement realised despite ongoing geopolitical tensions and regional economic uncertainties,” Nixon said.
“Through our participation in the newly established The Premier Alliance, launched in February, along with various other service partnerships, we have further expanded our global network and enhanced our service offerings to better meet customers’ evolving needs.”
2025 forecast: big drop expected
Despite the strong results, the company cautioned that 2025 will likely see a steep decline in earnings. ONE’s base forecast for net profit after tax in FY2025 stands at US$1.1 billion.
This assumes a relatively stable business environment, though the company warned that many variables remain out of its control.
“Considering the prevailing geopolitical landscape and the significant economic instability introduced by recent tariff developments in April, forecasting a precise full-year profit figure for FY2025 presents considerable challenges,” the company said.
ONE also ran different scenarios to prepare for possible shifts in global demand and freight prices. “We have also conducted comprehensive sensitivity analyses. These analyses consider potential headwinds such as weakened cargo volumes in specific trade lanes and reductions in freight rates across global markets,” the statement said.
“The outcomes of these scenarios indicate a potential profit after tax in the range of approximately US$250 million.”
Schedule reliability shows improvement
Meanwhile, global container shipping reliability improved slightly in March. According to industry data, schedule reliability climbed to 57.5 percent, offering some relief to shippers who have faced repeated delays in recent years.
Though not at pre-pandemic levels, the uptick signals some progress in supply chain stability.
As the year progresses, ONE’s performance will depend largely on freight trends, political developments, and the pace of global trade recovery.
For now, the company remains focused on providing dependable service and adapting to shifting market conditions.
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