Singaporean container line Ocean Network Express (ONE) saw a significant drop in its revenues, earnings and profits during the third quarter of its fiscal year 2022 (October - December), compared with the same period last year.
In particular, ONE's revenue fell to US$6.25 billion, earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased to US$3 billion, earnings before interest and taxes (EBIT) declined to US$2.73 billion, while the company's profit dropped to US$2.77 billion.
"The short-term freight rate market deteriorated sharply from the second quarter of the fiscal year (July - September) due to a further softening of the supply-demand balance resulting in a sharp fall in profitability," commented ONE in its announcement.
Additionally, during the period October - December 2022 period, ONE moved 2.6 million TEUs, translating to a year-on-year 10% decrease.
"Cargo demand decreased especially in East-West trades mainly due to the increase in inventories in North America which became clearer in July and August, and a decline in consumption in Europe due to progressive rising inflation," pointed out ONE, adding that "on the supply side, global port congestion improved, resulting in an increase in tonnage supply."
According to the full-year forecast of the Singaporean container shipping company, ONE expects full-year revenue of US$29.14 billion, EBITDA of US$16 billion, EBIT of US$14.74 billion and profit of US$14.73 billion.