Container shipping company Ocean Network Express (ONE) reported a loss of $88 million for the third quarter of the 2025 fiscal year, ending December 31, citing a persistent increase in vessel supply and slow cargo movement. The result marked a significant decline from the $1.16 billion profit recorded during the same period the previous year.
The shipping company stated that cargo movement in the Asia to North America trade slowed due to front-loading during the first half of the year.
While Asia to Europe routes initially stagnated, ONE noted a gradual recovery later in the period. The continued delivery of new vessels led to an increase in market supply, which resulted in a looser supply and demand balance.
Revenue for the third quarter fell to $4.07 billion, representing a 16 per cent decrease compared to the $4.85 billion generated in the third quarter of the 2024 fiscal year. Total liftings for the quarter remained relatively flat at 3.25 million twenty-foot equivalent units (TEU).
Short-term freight rates remained lower than the same period last year. In the Asia to North America eastbound trade, the freight index dropped from 159 to 119. Similarly, the Asia to Europe westbound index fell from 218 to 142. ONE stated that short-term freight rates in the third quarter decreased from the previous quarter due to the persistent increase in supply.
Operating costs were affected by higher ship costs and port charges, though these were partially offset by a 12 per cent year-on-year decrease in bunker prices. The average bunker price for the third quarter was $489 per metric tonne, down from $557 in the previous year.
Regarding the current business environment, the company noted that the rerouting of vessels via the Cape of Good Hope has persisted. ONE stated it is focused on a, "continuous review of cargo portfolio to enhance yield management and maximize profitability."
The company also implemented revisions to port calls and rotation changes on some services to improve schedule reliability.
ONE mentioned that cargo movement from Asia to North America in October and November decreased compared to the previous year. Due to a surge in front-loading demand earlier in the fiscal year, which was driven by anticipated tariff hikes, ONE said a, "wait-and-see approach prevailed, resulting in weaker demand."
Looking toward the remainder of the fiscal year, ONE stated it expects a recovery in cargo volumes during the fourth quarter. The company forecast is based on the expectation that vessels will continue to route via the Cape of Good Hope, and ONE stated it, "will closely continue to monitor the situation in the Red Sea."
For the full 2025 fiscal year, ONE updated its profit forecast to $310 million, which would represent a 93 per cent decrease from the $4.24 billion profit achieved in the 2024 fiscal year.
As of December 31, 2025, the ONE fleet consisted of 279 vessels with a total capacity of approximately 2.18 million TEU. The company currently has 68 new vessels on order.