Seatrade Maritime: ONE forecasts red ink in H2

Japanese-owned container line Ocean Network Express (ONE) reported a second quarter net profit of $285 million for the FY2025 ended 31 March 2026.

The result was an improvement of an $86 million net profit in Q1, however was 86% lower than the $1.99 billion profit the company in Q2 FY2024. For the first half of FY2025 ONE reported a net profit of $371 million compared to $2.78 billion in the same quarter a year earlier.

ONE noted that container freight rates in Q2 “were significantly lower” than the same period in the previous fiscal year. “The average rate in 2Q was slightly higher than in 1Q, although spot rates declined toward the end of the quarter,” the company said.

“Despite the market fluctuations driven by geopolitical uncertainties, we delivered positive results and secured profitability for the first half of the fiscal year,” commented Jeremy Nixon, CEO of ONE.

Looking ahead the company expects the continued delivery of newbuildings in the second half of the year to impact market conditions. The container sector has a newbuilding orderbook of some 30% of existing capacity. 

The line is basing its forecasts on ships continuing to divert via the Cape of Good Hope between Asia – Europe rather than returning to Red Sea/Suez Canal transits that would require considerably less capacity putting further pressure on the market. Fellow container line CMA CGM is restarting limited transits via the Red Sea and the Cape of Good Hope.

ONE has lowered its forecast for H2 FY2025 to a loss of $61 million compared to a $150 million net profit previously. The company now expects a full year net profit for FY2025 of $310 million compared to $550 million profit previously forecast.

“We maintain a cautious outlook for the full year given current market dynamics. We will continue to take steps to adapt our network and optimize our fleet, ensuring we meet market demands and provide customers with long-term reliability,” said Nixon.