Ocean Network Express Posts $88 Million Q3 Loss Amid Freight Market Downturn
Ocean Network Express (ONE), one of the world's largest container shipping lines, reported a net loss of $88 million for its third fiscal quarter ending December 2024. The loss, on revenues of $4.07 billion, underscores the persistent challenges facing the global container shipping industry as demand softens and freight rates retreat from their pandemic-era highs.
The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) halved year-over-year to $1.2 billion, while operating profit (EBIT) plummeted to $667 million from $1.9 billion a year ago. The results reflect a significant market correction following years of unprecedented volatility and record profits for carriers.
"The third quarter presented a complex operating environment," said Jeremy Nixon, CEO of Singapore-based ONE. "While current market dynamics have pressured our financial performance, our focus remains on disciplined capacity management and optimizing our global network. We are reinforcing our service reliability through strategic partnerships to best support our customers during this cyclical downturn."
ONE, a joint venture of Japanese shipping giants NYK Line, Mitsui O.S.K. Lines, and "K" Line, pointed to a "persistent increase in supply from new vessels" and slower cargo movement as primary drivers for the decline. The critical Asia-North America trade lane was notably weak, partly due to shippers front-loading cargo earlier in the year to avoid potential U.S. tariff increases.
Operational data revealed the extent of the slump: eastbound Asia-U.S. volumes fell to 673,000 twenty-foot equivalent units (TEUs) from 730,000 TEUs a year prior. Asia-Europe westbound volumes also dipped to 434,000 TEUs from 451,000 TEUs. Overall, ONE's total liftings decreased slightly to 1.62 million TEUs.
Freight rates followed volumes downward. The average rate per container on Asia-U.S. services fell 40% year-over-year, while Asia-Europe rates were down 42%. Looking ahead, ONE expects a modest recovery in cargo volumes and rates in its fourth fiscal quarter. The carrier also confirmed that vessel diversions away from the Red Sea and around the Cape of Good Hope—a strategy adopted due to regional security threats—will continue, adding cost and transit time to certain routes.
With a fleet of over 260 vessels and a total capacity exceeding 2 million TEUs, ONE ranks as the world's sixth-largest container line. Its performance is a key barometer for the health of global trade.
Industry Voices React
Michael Chen, Logistics Director at a major retail importer: "This isn't surprising. The market has been cooling for months. For shippers, the rate decline offers some cost relief, but the Red Sea diversions create massive schedule uncertainty. Reliability, not just price, is our biggest headache now."
Sarah Elwood, Shipping Analyst at Maritime Insights Consultancy: "ONE's results highlight the industry's return to a more normalized, competitive cycle after an extraordinary boom. The influx of new vessel capacity ordered during the peak is now meeting subdued demand, creating a challenging oversupply situation that will pressure all carriers' margins well into next year."
Captain David R. Miller (Ret.), a veteran maritime consultant: "It's a stark reminder that the shipping boom was an anomaly, not the new normal. Carriers enjoyed windfalls while customers suffered. Now the pendulum swings back. Their focus on 'network optimization' often just means cutting services and consolidating power, which does little for long-term supply chain stability. The industry's boom-and-bust cycle continues, with everyday businesses bearing the brunt of the volatility."
Find more articles by Stuart Chirls here.
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