Posted on: November 1, 2024 / Last updated: November 1, 2024
ONE Adjusts Full-Year Profit Forecast for Fiscal Year Ending March 2025 Due to Rising Freight Rates
Amid fluctuations in the global shipping industry, ONE has revised its full-year profit forecast for the fiscal year ending March 2025.
Driven by rising freight rates from the first half to mid-year, the CEO has adopted a cautious outlook on future industry trends.
Here, we’ll delve into the details behind this financial adjustment and the outlook ahead.
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ONE’s Profit Increases by $300 Million
Ocean Network Express (ONE) has revised its net profit for the fiscal year ending March 2023 upward by $300 million.
Initially forecasted at $2.745 billion, the new figure now stands at $3.095 billion.
This adjustment reflects the overall increase in freight rates across the shipping industry, with several other shipping companies making similar revisions.
Freight Rate Increase Starting in April 2023
Since April this year, freight rates have been on the rise.
Contributing factors include congestion in South African trade routes and a shortage of available cargo space.
Additionally, during the July to September quarter, steady demand from North America helped maintain stable pricing.
The East Coast port strike in North America also spurred early shipping movements by cargo owners.
CEO Highlights Uncertainties Ahead
ONE’s CEO, Jeremy Nixon, has voiced concerns about future uncertainties in the industry.
He highlighted geopolitical issues and the potential impacts of the U.S. presidential election as elements increasing industry risk.
Labor negotiations on the U.S. East Coast remain ongoing, adding to the overall uncertainty within the sector.
The CEO emphasized the need to stay alert to macroeconomic changes while managing global operations and customer service with flexibility.
Shipping Industry Outlook: Future Demand
Rising freight rates since early 2023 have significantly boosted profits for ONE and other shipping companies.
With increasing attention on the shipping industry, stakeholders are keenly watching for further developments.
