ONE endures US$5bn fall in profit as high interest rates and inflation affect global cargo demand

Ocean Network Express (ONE) saw its profit plunge by 91% to US$513m in Q1 fiscal year (FY) 2023 because of a drop in trade on East-West routes, as high interest rates and inflation in Europe and the US affected retail consumption.

The supply and demand balance has not recovered in the East-West trades, resulting in a gradual downward trend for short-term freight rate levels that has reduced profit margins.

Consequently, revenue fell by 58% to US$3.8bn and EBITDA declined by 87% to US$770m.