Ocean Network Express posted an $88 million loss in Q3 2023, driven by reduced volumes and lower freight rates, despite hopes for recovery.
Ocean Network Express reported a net loss of US$88 million on revenue of US$4.07 billion in its fiscal third quarter, as softer freight demand and weaker rates weighed on performance, reported New York's FreightWaves.
The carrier noted that Asia-North America volumes dropped to 673,000 TEU from 730,000 TEU, while Asia-Europe westbound traffic eased to 434,000 TEU from 451,000 TEU. Total liftings slipped to 1.62 million TEU compared with 1.64 million TEU a year earlier.
Average rates declined by about 40 basis points on Asia-US services and 42 basis points on Asia-Europe trades. Earnings before taxes, interest, depreciation, and amortization fell to US$1.2 billion from US$2.4 billion, while the operating margin dropped to US$667 million from US$1.9 billion.
Chief Executive Jeremy Nixon stated that the results reflected 'a challenging operating environment,' but he noted expectations for a recovery in cargo volumes and firmer rates in the fourth quarter, with vessels continuing to divert around Africa to avoid the Red Sea-Suez corridor.
ONE, jointly owned by Japan's NYK, MOL, and 'K' Line, operates more than 260 vessels with a capacity exceeding two million TEU, ranking it sixth among global container lines.
