ONE reports US$586 million net loss in first year of operation
JAPANESE container carrier Ocean Network Express (ONE), jointly owned by NYK, MOL and 'K' Line, posted an annual net loss of US$586 million drawn on revenues of $10
JAPANESE container carrier Ocean Network Express (ONE), jointly owned by NYK, MOL and 'K' Line, posted an annual net loss of US$586 million drawn on revenues of $10.88 billion in its first year of operation.
But the company said that in the current fiscal year, from April 1 to March 31, 2020, it will have a profit of $85 million on revenue of $12.7 billion.
It also said that in the final quarter of its fiscal year - three months to March 31 - the eastbound transpacific route trade was relatively weak after the Chinese New Year, due 'in part to a backlash downturn from the earlier rush demand ahead of additional US tariffs on China'.
Freight rates slightly declined from Q3 because of a decrease in demand, noted American Shipper.
Singapore-based ONE said it expects profits to gradually recover throughout the first half of its fiscal year with improved container volumes that will recover to the levels before NYK, MOL and 'K' Line integrated their liner operations.
ONE said that volumes that dropped due to teething problem when it began its services last spring have been restored.
'Measures will be taken to improve revenue and reduce expenditures such as improving the cargo portfolio, reducing fuel oil costs and cutting overhead costs,' said ONE.