Ocean Network Express (ONE) has reported a steep 89 per cent drop in net profit for the first quarter of its 2025 financial year, as the container shipping market faced increased volatility, lower freight rates, and fluctuating demand. The company's revenue also saw a slight decline compared to the same period last year.
For the three months ending June 30, the Singapore-based container line posted revenues of $4.05 billion, a four per cent decrease from the $4.21 billion recorded in the first quarter of the previous financial year. The impact on profitability was far more severe, with net profit plummeting to $86 million from $779 million in the prior-year period.
The sharp decline in earnings was driven by a combination of lower freight rates and increased outgoings. The company's results show that higher operating costs, variable costs, and overheads all contributed to the reduced profit margin. ONE described the market as experiencing "greater volatility" with, "fluctuating demand amid uncertainties surrounding tariffs."
The company noted that while the rerouting of vessels away from the Red Sea persists, the continued delivery of new vessels is increasing global shipping capacity, adding pressure to the market.
In its outlook, ONE stated that the global environment remains “highly uncertain," citing ongoing security risks and trade uncertainties. In light of this, the company has revised its full-year forecast for fiscal year 2025, now projecting a net profit of $700 million, down from a previous forecast of $1.1 billion.