Japanese carrier Ocean Network Express (ONE) has kicked off the quarterly financial results reporting season with a $167m net profit for April-June.
Despite seeing liftings slump by about 20% on its Q1 of last year, to 2.67m teu, the merged carrier’s revenue declined by just 4.8% to $2.74bn, as freight rates spiked in response to tight capacity on the major east-west tradelanes.
Additionally boosted by a 20% fall in the price of bunkers, to $348 per ton, and surcharges levied on shippers for low-sulphur fuel, ONE’s profit for the quarter soared by more than 3,000% over the $5m for the same quarter of 2019.
As suggested by OOCL’s operating performance update last week, the aggressive blanking strategies of the major container lines to mitigate the demand reduction impact of Covid 19 during the quarter has vastly improved the prospects of carrier profitability.
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Source: The Load Star