News / ONE enjoys huge profit rise – every eastbound transpac ship full

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Japanese container line ONE today reported its Q2 24 interim results that showed huge increases in profitability on the back of increased volumes and tightened supply, and vessel utilisation levels consistently at 90%-plus levels.

The carrier recorded a second-quarter revenue of $3.54bn, with volumes up 7%, to just over 3.3m teu across all its trades, while profits soared – Q2 EBITDA of just under $2.4bn was some 447% higher year on year, while its EBIT, of $1.87bn, was a staggering 5.916% up on the $31m in Q2 23.

The carrier said much of the improved performance was “driven by consistent consumer demand and an early peak season in July and August”, adding: “In addition, early shipments in the North America trade are in response to potential supply chain disruptions.”

This was shown in its vessel utilisation figures on the headhaul legs of the transpacific and Asia-Europe trades: on the eastbound transpacific, its vessels were 100% full during the quarter and carried 730,000 in the three months, compared with 706,000 teu last year, which represented 95% utilisation.

Meanwhile, on the Asia-Europe westbound leg, it carried 451,000 teu in Q2, compared with 434,000 teu last year, representing utilisation of 97% and 92%, respectively.

As a result, it has revised its full-year forecast for 2024, with net profit guidance now expected to be $3.095bn, up from the $2.745bn previously advised.

This came despite increased fuel costs year on year. While bunker prices remained relatively flat – up just $20 per tonne year on year – its fuel consumption increased 12%, due to the longer routings around the Cape of Good Hope.

“In addition to the current geopolitical situation, the industry faces added uncertainty around the final outcome of the US elections and US east coast port labour situation,” said CEO Jeremy Nixon.

“ONE will continue to closely monitor evolving macro conditions and maintain an agile and effective control of its global operations and customer service delivery performance, including a successful launch of the new Premier Alliance east-west network from January,” he added.