Ocean Network Express experiences profits increase at end of 2020
In Q3 of 2020, Ocean Network Express (ONE) saw its profits grow from $939 million in the same stretch of 2019 to $944 million and said it expects seasonal variables and the resumption of trade to impact volumes and results in Q4.
The carrier said a steady recovery in the trend in global cargo volume has been observed. In trade between Asia and North America, the amount of cargo increased by 25% and trade between Asia and Europe also increased in Q3.
As volumes rose sharply, trade was affected by significant shore-side and inland congestion. This was mainly induced in North America and Europe by retailers restocking inventory ahead of the seasonal holiday season.
As vessels had to wait to call at sea, the resurgence of COVID-19 and the reintroduction of border constraints added to the congestion, which also meant greater volumes in the hinterland.
With current volumes of cargo, ONE expects after tax to make a net profit of US$ 900 mil. The entire global supply chain experienced significant disruption from the late half of 2020 due to a rise in freight volume.
ONE is the newest container shipping line in the COVID-19 pandemic to see profits grow. Other carriers, for example, A.P. Higher freight rates and lower bunkering prices have all helped Moller-Maersk, Hapag-Lloyd and CMA CGM.
The carrier reported that it had taken a range of steps to boost its competitiveness in the market.
Maritime Business World