- Japanese ocean carrier ONE reports a Q4 operating loss of $248m due to lower freight rates and increased newbuild ship deliveries.
- Despite a 17% YoY rise in transported TEUs, revenue collapsed by 46% to $3.4bn.
- The carrier anticipates a return to profitability in Q1 2024, benefiting from elevated rates linked to the Red Sea crisis.
- While consumption growth is sluggish and cargo movement has slowed, ONE focuses on flexible deployment and efficient equipment control for potential recovery.
Q4 Challenges: Freight Rates and Newbuild Surge Impact ONE
ONE faces a challenging Q4 marked by a $248m operating loss attributed to diminished freight rates and a surge in newbuild ship deliveries. Despite a 17% YoY increase in transported TEUs, revenue plummets by 46% to $3.4bn.
ONE Expects Profitability Amidst Rising Rates
Foreseeing a return to profitability in Q1 2024, ONE banks on the surge in rates following the Red Sea crisis. While low consumer demand hampers a robust recovery, the company emphasizes flexible tonnage deployment and efficient equipment control to maximize profits.
ONE Navigates Uncertainty with Focus on Profit Maximization
With an uncertain supply and demand outlook, ONE remains cautious about a swift recovery across its liner trades. The carrier’s focus lies on maximizing profits through flexible strategies, acknowledging the impact of geopolitical events like the Middle East situation and longer diversions via the Cape of Good Hope.
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Source: The Loadstar
