ONE quadruples quarterly net profit to $1.3bn and doubles forecast

Ocean Network Express (ONE) has doubled its full-year profit forecast to $2bn after more than quadrupling net profit for the three months to September, as surging rates and volumes delivered the carrier its strongest quarter of the fiscal year.

Net profit for the Singapore-based carrier's fiscal second quarter, covering July to October, reached $1.3bn, against just $285m in the same period a year earlier — more than a fourfold increase. Revenue climbed 41% year on year to $6.3bn.

CEO Till Ole Barrelet said: "The second quarter delivered a strong financial performance, contributing to a solid first half of FY2026, reflecting our team's success in growing volumes and achieving higher utilisation, despite a challenging environment."

What drove the profit surge?

The headline gain rests chiefly on rates. ONE's average revenue per box rose almost 50% year on year, from $1,252 per TEU in the same quarter of 2025 to $1,709 this year — an increase of $457 per container on every unit moved.

Volumes also contributed, though modestly. Liftings rose to 3.4m TEU from 3.26m TEU a year earlier, a gain of roughly 140,000 boxes.

The strong quarter marks a sharp contrast with a weak first three months. For the six months to October, ONE booked profits of $1.34bn, compared with $371m over the same period of 2025 — nearly four times last year's level — on revenues of $10.8bn.

"Reflecting this positive momentum, we are pleased to raise full-year outlook to $2bn," Mr Barrelet said. "Looking ahead, we will adapt our network in response to evolving conditions, with safety remaining our top priority."

Where is the strength concentrated — and where is it fading?

Transpacific trade has carried much of the momentum, supported by US inventory rebuilding and data centre demand, alongside solid performance on Latin American and intra-Asia lanes.

The picture on Asia-Europe is less encouraging. The gradual return of Suez Canal sailings is adding capacity pressure on those routes just as demand appears to be weakening, and ONE expects spot rates to ease in the second half as seasonal demand softens.

Even so, the carrier still expects rates to hold above the levels assumed in its earlier forecast, and anticipates a modest bump ahead of Chinese New Year. That outlook, however, depends on conditions in the Strait of Hormuz remaining unchanged — a caveat that links the forecast directly to geopolitical stability in the Gulf.

"We remain focused on advancing our ONE2030 strategy, building on our strong foundation to deliver long-term value to customers and stakeholders," Mr Barrelet said.

What does ONE's performance mean for K Line?

As one of ONE's three contributing shareholders, K Line felt the effect directly. The Japanese operator recorded an 81.4% year-on-year increase in first-half net profit, to $786m.

Equity earnings from unconsolidated subsidiaries and affiliates totalled $443m, of which ONE contributed $415m — roughly 53% of K Line's entire half-year profit. Despite the windfall, K Line left its full-year forecast unchanged at $1.2bn net profit, signalling caution about the second half.

How did Cosco's ports division perform?

Cosco Shipping Ports also reported this week, posting an 8.4% rise in third-quarter container throughput to 42.3m TEU. Revenue climbed 13% to $484m, while gross profit increased 19.3% to $128m.

For the first nine months of 2026, the ports division handled 122.4m TEU, up 8.1% on the same period of 2025. Revenue rose 12.6% to $1.39bn, generating a 19.7% increase in profit to $316.3m — evidence that the volume strength behind ONE's quarter extends across the terminal side of the chain as well.

For shippers and forwarders, the message is mixed: headline capacity discipline and Suez normalisation point to softer spot rates ahead, but ONE's own guidance keeps full-year earnings above earlier expectations unless conditions in the Strait of Hormuz shift.