Falling revenues failed to halt soaring profits at Ocean Network Express (ONE) as the Singapore-based carrier recorded net profits of US$167 million, in the period from April to June 2020, the carriers’ first quarter.
Aided by a 20% decline in the price of bunkers and careful capacity management during the peak of the Covid-19 lockdown in Europe and the US, bolstering freight rates, the line managed to limit its revenue decline to 4.8%, achieving income of US$2.74 billion: even as volumes decreased 20% in the period, compared to 2019 Q1 statistics.
MOL, a 31% shareholder in ONE, said, “In this business environment, profitability was achieved in this first quarter because ONE promoted cost reductions while minimising the fall in capacity utilisation rates through the additional reduction of services in both the Asia-North America and the Asia-Europe routes and also benefited from falling fuel prices.”
ONE is a member of THE Alliance with its partners Yang Ming, Hapag-Lloyd and HMM.
