Ocean Network Express (ONE), a new entity from three Japanese liner companies ‘K’​ Line, MOL and NYK, saw quarterly profits plunge to $513 million which is a significant decline year-on-year (-US$ 4,986 million).

ONE´s profit sank to $513m in the first quarter of 2023, a significant decline from $4,986 million.

Revenue took a similar trajectory with a decrease of 58% and ended up at USD 3.8bn.

“The global cargo demand in April-June was significantly lower than in the same period of the previous year. East-West routes suffered a fall in demand due to stagnant retail consumption in Europe and the U.S. as a result of high interest rates and inflation,” ONE comments in its financial report for the first quarter of 2023.

Further shifts in the market are expected as transport demand and trade patterns continue to alter, creating an uncertain outlook which is difficult to predict.

The company under these circumstances sees difficulties to announce a reasonable business forecast.

Under these circumstances, it is extremely difficult to announce a reasonable business forecast at this time, says ONE, and the full-year forecast for full year 2023 is yet to be determined.

However the shipping company maintains its flexibility to respond to changes in the business environment.

During the quarter, ONE took delivery of three new vessels, but the order book at the end of June still stood at 42 vessels, including long-term charter agreements.

In June, the company took delivery of the ship “One Innovation” the first of six long-term chartered 24,000 teu vessels from Shoei Kisen Kaisha Ltd, which was deployed on Asia-Europe trade.

The container ship is already deployed on the Asia to Europe (FE3) service, under THE Alliance (THEA), and the company expects to lower its carbon emissions with the ship´s hull design that maximises cargo intake and minimises fuel consumption, as ONE reports.

The remaining vessels will join the fleet during the current financial year.

In its full year forecast ONE confirms that the containership market is in the midst of major changes, such as, the aftermath of global supply chain disruption, changes in consumer behavior and shifts in trade patterns due to increasing international tensions.