Ocean Network Express Ltd. (ONE) has revealed its financial results for the third quarter of 2023, which show a 46 per cent fall in revenue to $3.35 billion.
ONE revealed that cargo movements from Asia to North America climbed by 13.1 per cent year-on-year (YoY) between October and December 2023, owing to high domestic demand levels in the US.
According to ONE’s figures, EBITA decreased 94 per cent from Q3 2022 to Q3 2023.
The financial report also shows a 103 per cent fall in the third quarter, with a net profit deficit of $83 million, which is significantly lower than the same period in 2022.
Additionally, ONE container shipments from Asia to Europe increased by 14.7 per cent in October 2023. ONE stated that this is due to a reactive spike, but continuous inflation has resulted in a halt to personal expenditure.
Sluggish consumer growth, less cargo movement during the low season, and an influx of new ships all contributed to ONE’s further softening of the supply and demand pattern, as well as low-level short-term freight costs in Q3.
In North America, the company revealed the domestic consumption remained firm consistent with the previous quarter, but marine cargo movements slowed as the low-season began.
In Europe, prolonged inflation has led to a stagnation in personal consumption, and with the additional uncertainty surrounding the situation in the Middle East, cargo movements have not seen a full-fledged recovery.