Despite the start of the peak season, there was no strong recovery in cargo movement. The supply-demand balance softened due to an increase of newly built vessels, and short-term freight rate levels did not sustain their upward trend. The profit after tax for FY2023 Q2 was US$187 million, significantly lower than the same period last year.
- In North America, cargo movement showed some momentum in August, but lacked sustainability against the backdrop of weak general consumption and other factors. In Europe, a gradual recovery trend from the decline in demand caused by high inflation was seen, however it did not lead to a full-fledged recovery in cargo movement.
- On East-West routes, tonnage increased due to the addition of newly built vessels, although blank sailings and service rationalization were implemented.
- The above factors softened the supply and demand balance, particularly on East-West routes resulting in stagnant freight levels.
FY2023 full year forecast
Full-year results for FY2023 are expected to show a profit after tax of US＄ 851million, a decrease from the previous year, due to the deterioration of freight market caused by declining demand. (-US$ 14,146 million)
- Although it takes some time to see a solid recovery of cargo movements as high interest rates and inflation continues, a gradual recovery in the second half is expected.
- The oversupply of tonnage, caused by the delivery of a large number of newly built vessels in this fiscal year, is expected to continue through the second half.
- The freight market will remain weak in the second half due to the supply & demand gap described above, but ONE will focus on maximizing profit by flexible tonnage deployment and efficient equipment control based on demand.
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