ONE reports Q1 net profit of US$31M amid rising fuel costs, Middle East tensions
ONE maintained strong cargo volumes in Q1 FY2026, handling 3.257 million TEUs, an increase from 3.165 million TEUs in Q1 FY2025.
GLOBAL – Ocean Network Express (ONE) has reported mixed but resilient financial results for the first quarter of FY2026, posting a net profit of US$31 million despite a challenging operating environment, as the carrier navigated surging fuel prices and escalating operating costs driven by geopolitical instability in the Middle East.
The company generated revenue of US$4.539 billion, EBITDA of US$707 million, and EBIT of US$76 million during the quarter. Strong cargo demand towards the end of the quarter supported higher freight rates, with the average freight rate reaching US$1,300 per TEU. Lifting volume totalled 3.257 million TEUs.
Despite these headwinds, ONE maintained high vessel utilization through disciplined capacity management and operational execution.
Building on a Q1 FY2025 profit of US$86 million, increased lifting volumes across most trade lanes contributed an additional US$172 million, while improving freight rates added a further US$210 million.
Cost Pressures and Profitability Challenges
However, higher ship operating costs reduced earnings by US$101 million, while variable costs associated with increased cargo volumes cut profits by a further US$132 million.
The largest negative impact stemmed from bunker fuel prices, which rose sharply due to the conflict in the Middle East, reducing profit by US$125 million. Higher overhead costs and other expenses further weighed on results, lowering earnings by US$42 million and US$38 million, respectively.
As a result, despite robust revenue growth and strong market demand, ONE’s net profit fell to US$31 million in Q1 FY2026, highlighting how escalating fuel and operating costs eroded much of the benefit of stronger freight volumes and rates.
Trade Lane Performance and Fleet Expansion
ONE maintained strong cargo volumes in Q1 FY2026, handling 3.257 million TEUs, an increase from 3.165 million TEUs in Q1 FY2025.
The Asia–North America (Transpacific) trade remained the company’s largest market, with volumes rising from 889,000 TEUs to 969,000 TEUs. Asia–Europe volumes also increased to 769,000 TEUs, up from 702,000 TEUs a year earlier.
As of June 30, 2026, ONE operated a fleet of 284 vessels with a combined capacity of 2.26 million TEUs, reflecting its continued investment in expanding and modernizing its global network.
Moreover, during Q1 FY2026, the carrier took delivery of one newbuild vessel with a capacity of 13,932 TEUs, further strengthening its fleet.
Finally, the report illustrates a period of steady logistics growth, tempered by rising international transport costs.
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