The unsettled state of ocean shipping continued to be a moneymaker for liner operators in late 2024.
Three-carrier alliance Ocean Network Express (ONE) said net profit in the 2024 October-to-December fiscal third quarter was $1.16 billion, up from a loss of $83 million in the year-ago quarter, on revenue higher at $4.85 billion from $3.36 billion.
The Singapore-based alliance of K-Line, MOL and NYK in an earnings release said results benefited from stable freight flows on the Asia-North America trade, thanks to strong consumer spending, and diversions away from East and Gulf Coast ports during union labor negotiations.
Operating earnings in the quarter rebounded to $1.05 billion from a loss of $248 million y/y. Pretax earnings totaled $1.6 billion, from $170 million.
Container volume in the quarter grew 4.5% y/y, below global growth of 5.3%, according to analyst Container Trade Statistics (CTS). At 38.1%, revenue per TEU trailed the CTS global rate of 38.6%.
The alliance reported the third consecutive quarter with 100% vessel utilization from Asia to North America. Asia-Europe utilization fell to 93% from 97% in Q3 and 100% in Q2.
For the fiscal year to date, profits were $3.9 billion, from $617 million y/y, on revenue of $14.9 billion, up from $10.7 billion. Operating profit was $3.6 billion against $1.04 billion, while pretax profit came in at $5.2 billion, from $1.4 billion in 2023.
The carriers, which are also part of the Premier Alliance, revised fiscal full-year profit guidance to $4.03 billion from $3.1 billion announced in October.
“The overall business environment for container shipping continues to be generally positive,” said ONE Chief Executive Jeremy Nixon in the release, “but with increased geopolitical and regional economic uncertainty. We are expecting a relatively quick recovery in cargo volumes after the Lunar New Year.”
Find more articles by Stuart Chirls here.
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