Ocean Network Express (ONE) reported a net loss of $88 million in the third quarter of its fiscal year 2025, with revenues reaching $4.07 billion. This downturn is mainly due to ongoing overcapacity and lower demand in the container market.
The Singapore-based shipping company noted that its results for the October to December period were impacted by the consistent delivery of new ships, which increased fleet supply beyond demand. At the same time, cargo volumes have decreased across major trade routes.
“Our 3Q FY2025 results show that we are facing a tough operating environment,” said CEO Jeremy Nixon, highlighting the weaker market conditions despite efforts to manage capacity, control costs, and optimize operations.
This loss represents a significant drop from the previous quarter when ONE achieved a profit of $285 million, driven by increased shipments ahead of expected U.S. tariffs. That surge in demand, especially on transpacific routes, was short-lived as shippers took a more cautious approach.
Volume shipments from Asia to North America fell both from the previous quarter and compared to last year, with the most significant decline noted in October and November after the initial surge. Conversely, Asia to Europe trade volumes fared somewhat better, dipping after China's Golden Week but stabilizing toward the end of the year.
On the supply front, the continuous arrival of new vessels has disrupted the supply-demand balance, which has pressured utilization rates and kept spot freight rates lower than the previous year throughout this quarter. Rates have also dropped further from the already weak levels seen in the second quarter.
Operational costs remained high as vessels continued to take longer routes around the Cape of Good Hope to avoid security issues in the Red Sea and Gulf of Aden. While these longer journeys helped manage excess capacity, they also led to increased transit times and costs.
Looking ahead, ONE is adopting a cautious perspective, anticipating a slight recovery in the fourth quarter. This outlook depends on continued routing around the Cape and a gradual increase in volumes, although the company acknowledges that freight rates are still lower than expected.
The disappointing performance in the third quarter has affected ONE's full-year projections. After earning $371 million in the first half of fiscal 2025, the company now predicts a total profit of $310 million for the year, indicating a potential loss of $61 million in the second half.
ONE’s forecast comes at a time when some operators have started rerouting Suez Canal services back through the Red Sea temporarily, assuming that the security situation in the area remains stable.
Nixon mentioned that ONE is relying on operational flexibility and partnerships to adapt to ongoing market changes. The company has modified port calls and service rotations to enhance schedule reliability while continuously reviewing its cargo mix to maintain profitability.
ONE also announced plans for the Premier Alliance’s 2026 East-West network, which aims to stabilize services as the container market faces ongoing challenges.
ONE’s fiscal year runs from April 1 to March 31.