News / ONE sees profits plunge 92% – and predicts another tough year

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Ocean Network Express (ONE) reported a sharp decline in earnings for full-year 2025, as weaker freight rates and soft demand weighed on performance despite stable volumes. 

The Singapore-headquartered carrier grouping posted full-year revenue of $16.6bn for the period April 2025 to March 2026, down 14% year on year. EBITDA fell 54%, to $2.75bn, while EBIT dropped 92%, to $310m.

Net profit also plunged 92% to $338m. 

Lifted volumes remained largely flat, up just 1% year on year, to 12.9m teu – an increase of 117,000 teu, which lagged significantly behind overall year-on-year market demand growth of 4.7% last year, according to Container Trades Statistics. 

ONE said cargo movements had remained “sluggish” in the fourth quarter, although a modest recovery in freight rates helped deliver a quarterly profit of $55m. But for the full year, demand was described as ‘subdued’, although there was some seasonal strength on the Asia-Europe trade ahead of Chinese New Year. 

The carrier noted that an influx of newbuild tonnage continued to pressure the supply-demand balance, weighing on freight rates. However, this was partially offset by port congestion and severe weather disruption, which tightened effective capacity.

Geopolitical tension in the Middle East also pushed up costs, although the direct impact on fourth-quarter earnings was limited. 

The carrier explained that costs had risen across several areas. Operating expenses increased, due to higher vessel costs and port charges, while variables were driven up by more expensive empty container repositioning.

Freight rates also declined overall, amid the softer supply-demand balance, although bunker prices fell year on year and overhead costs remained stable. 

In the Asia-North America eastbound trade, both the pre-CNY peak and post-holiday recovery were weaker than expected, with volumes trending down year on year. In contrast, ONE noted that Asia-Europe westbound demand had strengthened ahead of the holiday, supporting improved utilisation on both major routes. 

Chief executive Jeremy Nixon said the line had managed to remain profitable through “disciplined cost control and operational efficiency”, despite the heightened volatility. 

“While we continue to navigate a complex and volatile global environment, our focus remains on maintaining safe, secure, and reliable operations,” he said, adding that a new leadership structure and service enhancements would support performance in the coming year. 

And looking ahead, ONE forecasted a full-year profit of around $300m for FY2026, another decline following 2025, and warned that outlook visibility remained limited due to geopolitical risks, particularly in the Middle East. 

The carrier said the restrictions in the Strait of Hormuz and continued diversion from the Red Sea/Suez Canal route, with vessels still routing via the Cape of Good Hope, had added significant cost pressure. And cargo flows to North America had weakened, while demand for Europe-bound shipments remained comparatively robust. 

To mitigate disruption, ONE said it had taken “agile measures” across its network, including expanding terminal capacity in key locations such as Laem Chabang and Busan, aimed at stabilising operations and improving service reliability. 

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