Singapore's Ocean Network Express (ONE) reported a slight but steady profit for fiscal year 2025, despite facing challenges like weak cargo demand, increased shipping capacity, and geopolitical issues impacting major tr...
Singapore's Ocean Network Express (ONE) reported a slight but steady profit for fiscal year 2025, despite facing challenges like weak cargo demand, increased shipping capacity, and geopolitical issues impacting major trade routes.
For the fiscal year ending in March 2026, the company recorded a total revenue of $16.6 billion and a net profit of $338 million, which represents a 14% decline in revenue and a staggering 92% drop in profit when compared to the previous year. In the fourth quarter, revenue was $4.04 billion, and profits fell to $55 million, down 82% year-over-year, even as shipping rates showed some recovery amidst low cargo volumes.
CEO Jeremy Nixon highlighted the company's focus on cost management and operational efficiency as key factors that helped maintain profitability in what he described as a “complex and volatile global environment.”
“Even with the increased volatility in the fourth quarter, our careful cost management and operational effectiveness allowed us to achieve a profitable year,” Nixon stated.
Weak Demand, Rising Supply
ONE's results reflect the challenging conditions affecting the shipping industry as a whole. Demand for cargo remained low throughout the year, especially on routes across the Pacific, while new ships continued to add to overall global shipping capacity.
However, the Asia–Europe route showed some positive results, with steady shipping volumes ahead of the Lunar New Year helping to balance out weakness in other areas. ONE also noted that port congestion and severe weather disruptions did little to bolster freight rates by tightening effective capacity, particularly towards the end of the fiscal year.
Like other companies in the industry, ONE has had to manage increasing costs linked to geopolitical tensions, particularly in the Middle East, where restrictions in the Strait of Hormuz remain in place. Nonetheless, the direct effect on fourth-quarter earnings was minimal.
The future remains uncertain. ONE pointed out that ongoing instability has complicated any significant return to routing through the Red Sea and Suez Canal, forcing vessels to navigate around the Cape of Good Hope, which increases both time and fuel expenses.
ONE anticipates staying profitable in FY2026, with a forecast of around $300 million in net income. However, this projection depends heavily on the assumption that stability returns to the Middle East by mid-year. The company has cautioned that disruptions in the Strait of Hormuz and broader regional tensions will keep putting pressure on costs and network dependability, even as it strives to maintain service levels.