Losses were also reported at the operating level, with earnings before interest and tax (EBIT) deficit of US$248M comparing with a surplus of US$2.7B in the corresponding period of 2022. Turnover of US$3.4B was down more than 46% on the same period of 2022 – and this despite a 17% increase in volumes carried (up to 3.1M TEU).

This reflected the sharp fall in freight rates across many of the carriers trades lanes. In a statement, ONE said: “Sluggish consumption growth, a decrease in cargo movement during the low season and an influx of new ships contributed to a further softening of the supply and demand trend and low-level short-term freight rates in Q3 2023.”

Nonetheless, ONE expects to earn a profit for the year and expects a positive outcome for its forthcoming quarterly period, projecting an EBIT of US$132M and new profit of US$239M. For the full year, the carrier is forecasting a net profit of  US$856M, slightly up on the US$851M projected at the Q2 2023 results announcement. If achieved, this would compare with fiscal year 2022/23’s profit of almost US$15B, a fall of more than 94%.

The expected improvement for the remaining part of the fiscal year is largely attributable to the rapid increase in freight rates since the Red Sea crisis, which ONE said had “caused an instant tonnage shortage.” But ONE’s operational costs have jumped since it started routing its Asia/Europe and some Asia/USEC ships around the Cape of Good Hope.

ONE also warned that, despite the positive trend in cargo movements, low consumer demand due to prolonged stagnation was not supporting a strong recovery in cargo movements and that it would take some more time for marine transport cargo movements to recover fully.