Ocean Network Express (ONE), one of the world's largest container shipping lines, reported first-quarter fiscal year 2026 revenue of US$4.539 billion and a net profit of $31 million, while sharply raising its full-year profit forecast to $900 million from the previous guidance of $300 million.

For the April–June period, the Singapore-based joint venture of three Japanese container carriers posted revenue of $4.54 billion, up from $4.05 billion in the same quarter a year earlier. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose to $707 million from $616 million, while the EBITDA margin improved to 15.6% from 15.2%.

By comparison, French rival CMA CGM posted an EBITDA margin of 22.7%, while Maersk (OTC: AMKBY) reported 16.8%. The gap reflects differences in carrier mix, route exposure, and fleet composition across the major operators still navigating a volatile rate environment that has shifted sharply from the post-pandemic freight slump.

ONE's earnings before interest and taxes (EBIT) totaled $76 million, up from $38 million a year earlier, with EBIT margin improving to 1.7% from 0.9%.

However, net profit declined to $31 million from $86 million in the year-ago quarter, as rising fuel costs driven by the effects of the Iran war weighed on the bottom line. The conflict contributed to elevated bunker prices and sustained reroutings around the Middle East, adding to operating costs across the industry.

Container volumes grew to 3.257 million twenty-foot equivalent units (TEUs), up from 3.165 million TEUs in Q1 FY2025. The average freight rate climbed to $1,300/TEU, compared with $1,199/TEU year-over-year and up from $1,154 in Q4 FY2025.

The ONE consortium comprises Nippon Yusen Kaisha (NYK), Mitsui O.S.K. Lines (MOL), and Kawasaki Kisen Kaisha ("K" Line).

The company cited higher bunker fuel costs as a significant drag on profitability. Average bunker prices reached $666 per ton, up from $535 a year earlier and $440 in Q4 FY2025.

Despite elevated fuel and operating costs stemming from Middle East disruptions, ONE said it improved yields and sustained high vessel utilization as demand recovered through May and June.

Chief Executive Till Ole Barrelet pointed to improved yields, strong utilization, and operational agility as central drivers of the quarterly performance, while acknowledging continued geopolitical uncertainty. The tripling of ONE's full-year outlook signals the carrier expects freight rates to remain supportive through the remainder of its fiscal year, even as fuel costs and route uncertainties persist.

Source: FreightWaves