ONE REPORTS SOARING 2020 PROFITS, BUT STAYS CAUTIONS ON PREDICTIONS FOR THIS YEAR

On Apr 30th, Japanese container line ONE reported a $3.5bn profit for 2020 – an astonishing leap from the $105m profit declared for 2019.

 

Source: https://www.dreamstime.com/rotterdam-netherlands-july-one-minato-kobe-large-japanese-pink-container-ship-lying-harbour-being-disembarked-image171571672

 

The earnings surge came on the back of a 21% increase in annual revenue, to $14.4bn, as the container shipping market rebounded in the second half of last year.

 

ONE said: “During Q4, global container volumes continued to increase due to a strong demand for consumer goods. Asia-North America trade volume increased by 40% year on year.

 

“The global cargo volume also grew year on year in Q4, indicating a steady recovery trend from Q3, which is contrary to 2020’s first half when the cargo volume was seriously impacted by Covid-19.”

 

With a  raft of blank sailings introduced shortly after the outbreak of the pandemic, ONE managed to maintain near-100% utilisation on sailings on its two largest trades – the transpacific and Asia-North Europe.

 

Total volumes carried on the headhaul transpacific eastbound leg were 2.76m teu, compared with 2.69m teu in 2019, although its freight rates were 30% higher last year.

 

On Asia-Europe, 2020 volumes were 1.56m teu, compared with 1,830 teu in 2019. However, revenues were propped up by a 50% growth in freight rates.

 

But the carrier declined to provide a forecast for its 2021 performance. It said: “The pandemic is expected to ease with the global vaccination roll-out. But the resurgence of Covid-19 and possible variants are still a great cause for concern.

 

“The full-year 2021 economic environment will change as the global situation of Covid-19 changes. It is therefore extremely difficult to make a performance forecast and, as such, ONE’s forecasts for full-year 2021 are yet to be finalised.”

 

Source: Theloadstar by Gavin Van Marle

 


Related News

'I paid ridiculous charges, my cargo still got rolled and the carrier wanted more'
'I paid ridiculous charges, my cargo still got rolled and the carrier wanted more'

2108 Views

Short-term freight rates from China to North Europe have breached the $20,000 per 40ft mark, while transpacific carriers are quoting rates of up to $25,000 to the US west coast

Adoption of 'smart' cargo labels needs critical mass
Adoption of 'smart' cargo labels needs critical mass

1369 Views

DB Schenker has adopted ‘smart label’ stickers, incorporating GPS tracking devices thin enough to be used for pallets, gaylords, and even individual cartons – but success hinges on industry-wide adoption, experts say.

Full steam ahead: Why container ships are racing across the Pacific
Full steam ahead: Why container ships are racing across the Pacific

3339 Views

Higher speed should bolster carrier profits but it’s no panacea for cargo shippers


Comment
  • Your review
main.add_cart_success