ONE posts 10% decline in profits for FY 2022

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The ONE (Ocean Network Express) full-year result for Financial Year 2022 was US$14,997 million, a decrease of US$1,759 million (10%) from the previous year.

The liner operator points out that strong market conditions continued during the 1H, but in 2H “the market weakened quickly due to the recovery of tonnage availability as a result of the normalization of the supply chain, and a sharp decrease of demand.

“A decline in demand became more pronounced in the 4Q, against a backdrop of a high goods inventory ratio in the US and falling consumption in Europe due to rising inflation.”

On the supply side, ONE says that tonnage utilization improved as congestion eased. Blank sailings continued since the end of the calendar year 2022 in response to the decrease in demand.

Supply and demand balance softened at an even faster pace despite blank sailings to address decrease of volume, resulting in decreased spot freights in Q4 QoQ.

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