ONE Reports Significant Profit Surge with Full Eastbound Transpacific Ships
2 weeks ago
ONE Reports Significant Profit Surge with Full Eastbound Transpacific Ships
Japanese container line ONE has released its Q2 2024 interim results, revealing a remarkable surge in profitability driven by increased volumes, tightened supply, and consistently high vessel utilization rates exceeding 90%.
The company reported second-quarter revenues of $3.54 billion, reflecting a 7% rise in volumes to over 3.3 million TEU across all routes. Profits soared, with Q2 EBITDA reaching nearly $2.4 billion—an impressive 447% increase year-over-year—and EBIT skyrocketing to $1.87 billion, a staggering 5,916% rise from just $31 million in Q2 2023.
ONE attributed this strong performance to sustained consumer demand and an early peak shipping season in July and August, along with proactive shipments in the North America trade in anticipation of potential supply chain disruptions.
Vessel utilization rates in the transpacific and Asia-Europe trades were exemplary. In the eastbound transpacific lane, ONE's vessels operated at full capacity throughout the quarter, carrying 730,000 TEU compared to 706,000 TEU the previous year, which represented a utilization rate of 95%. Similarly, in the Asia-Europe westbound leg, they transported 451,000 TEU, an increase from 434,000 TEU last year, achieving utilization rates 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 comes despite rising fuel costs. While bunker prices remained relatively stable, increasing by only $20 per tonne year-over-year, fuel consumption surged by 12% due to longer routing around the Cape of Good Hope.
CEO Jeremy Nixon acknowledged the uncertainties facing the industry, including geopolitical factors, the implications of the upcoming US elections, and labor situations at US east coast ports. He emphasized that ONE would continue to adapt to changing macroeconomic conditions and maintain effective oversight of global operations and customer service, including the successful launch of the new Premier Alliance east-west network in January.
Source: The Loadstar