Japanese container line Ocean Network Express (ONE) announced its interim results for Q2 2024, revealing substantial profit growth driven by increased shipping volumes and tightened supply. Vessel utilization levels consistently exceeded 90%, contributing to this impressive performance.
In the second quarter, ONE generated revenue of $3.54 billion, with volumes rising by 7% to over 3.3 million TEUs across all trades. Profits surged, with second quarter EBITDA reaching nearly $2.4 billion, a remarkable 447% increase year-on-year. The EBIT for Q2 2024 stood at $1.87 billion, up an astonishing 5,916% from just $31 million in the same period last year.
The carrier attributed much of this improved performance to strong consumer demand and an early peak shipping season in July and August. They noted, “Early shipments in the North America trade are in response to potential supply chain disruptions.”
This strong performance is reflected in the vessel utilization figures for the headhaul legs of the transpacific and Asia-Europe trades. In the eastbound transpacific trade, ONE's vessels operated at 100% capacity during the quarter, carrying 730,000 TEUs compared to 706,000 TEUs last year, which represented a 95% utilization level.
On the Asia-Europe westbound leg, the carrier transported 451,000 TEUs in Q2 2024, an increase from 434,000 TEUs last year, resulting in utilization levels of 97% and 92%, respectively.
As a result of this strong performance, ONE has revised its full-year forecast for 2024, now projecting a net profit of $3.095 billion, an increase from the previously estimated $2.745 billion.
This growth occurred despite rising fuel costs year-on-year. While bunker prices remained relatively stable, increasing by just $20 per tonne, fuel consumption rose by 12% due to longer shipping routes around the Cape of Good Hope.