Ocean Network Express (ONE) has reported its best results since the company started operations in April 2018.
The Japanese grouping swung back into profit in the second quarter of 2020 (the first quarter of the Japanese fiscal year) with a positive result of $167 M.
The net profit result came despite lower revenues both on a month- on-month and year-on-year basis.
Liftings fell by some 20% in the quarter to 2,673,000 teu. However, a sharp drop in the bunker price, preceding a decrease in ONE’s bunker surcharge, plus higher freight rates brought the company into the black.
ONE reported a loss of -$27 M in the previous quarter and a small profit of $5 M in Q2 2019.
Eastbound Asia – North America saw a drop in liftings from 669,000 to 610,000 teu but a rise in the utilisation rate from 86 to 96%.
Westbound Asia-Europe saw a decline from 460,000 to 347,000 teu but a similar spike in the utilisation rate from 87% to 96%.
Meanwhile, bunker prices fell from an average $432 in Q2 2019 to $348 in Q2 2020.
Adding to that, overall bunker consumption in the period was lower due to the void sailings, at 877,000 tons, below the quarterly aver- age of 1.05 million in 2019.
Freight was up nearly 7% on the eastbound Asia-N America trade, but down 5.5% on the westbound Asia-Europe trade.
ONE says demand has improved in the current quarter, and cargo is presently around 10% down year-on-year.