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ONE records USD 5.5 billion profit for Q1 FY2022 as freight rates climbs and bunker consumption falls

01 Aug 2022

Global container shipping company Ocean Network Express Pte Ltd (ONE) on Friday (29 July) recorded a profit of USD 5,499 million for the first quarter of FY 2022, an increase of 120% from USD 2,490 million from the same period last year, due to significantly higher freight rates.

The firm said freight rates remained firm despite some softening in supply-demand conditions. 

Global cargo demand in April-June remained steady, with no major breakdown despite the impact of Shanghai’s lockdown and the Ukraine crisis, the firm explains. 

On the supply side, port congestion showed signs of improvement in some areas, but supply chain disruptions continued around the world, including deterioration on the east coast of North America.

“As a result, freight rates remained significantly higher than those in the same period last year, increasing the profit amount,” said ONE. 

It also said while its ships’ costs increased, bunker consumption decreased due to a reduction in the number of operating vessels and port congestion, resulting in a similar level as the same period last year.

Its bunker consumption fell from 906,000 metric tonnes (mt) to 773,000 mt from the same period last year, a 15% decrease on year. 

On its full year forecast, it is extremely difficult to announce a reasonable business forecast for the current financial year due to factors such as increasing uncertainties such as the ongoing Russia/Ukraine crisis and the impact of China’s zero Covid-19 policy.

As such the company’s forecasts for FY2022 are yet to be finalised, said the firm. 

 

Photo credit: Ocean Network Express
Published: 1 August, 2022

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