Home / Shipping News / International Shipping News / K Line: ONE’s Profits Up By Some Margin

K Line: ONE’s Profits Up By Some Margin

In Q1, ONE’s profit significantly increased to US$2,559 Million compared to the same period last year (+US$2,392 Million).
This increase is mainly due to the continuous strong market.
• The global container trade volumes increased by approximately 20% Y to Y. Vessel utilization was at full capacity due to the strong cargo demand.
• The turmoil within the entire global supply chain continued in Q1. Severe shoreside and inland congestion was and is still ongoing.
• Long term freight increased and short term freight was significantly higher than expected.

FY2021 1st Quarter Results and PL Analysis

• Liftings: Increased due to global strong cargo demand compared to the same period last year, which was significantly affected by COVID-19.
• Operation costs: Increased due to faster vessel speeds to improve schedule reliability. Vessel delay due to port/terminal congestion is ongoing.
• Freight: Significantly improved due to increases in both long-term and shortterm market.
• Variable costs: Cost saving initiatives progressed, but additional costs increased due to shoreside and inland congestion.
• Bunker price: Further increased.
• Overhead costs: Agency fees increased.
• Others: Increased due to FX impact
• and interest rate, etc.

2. Liftings, Utilization Rates, Freight Index in Major Trades

Liftings, Utilization Rates : The lifting on Asia-North America E/B decreased from FY2020 Q4 due to blank sailings caused by port congestion or vessel delays, but the vessel utilization rate was maintained at 100%. Both lifting and utilization on Asia-Europe W/B improved. The lifting and utilization rate on both Asia-North America and Asia-Europe trade improved
compared to FY2020 Q1.

Freight Index : Both long and short-term freight market increased. It significantly improved compared to the same period last year.

3. COVID-19 Impact & Countermeasures

4. FY2021 Full Year Forecasts

Whilst the current demand is rapidly increasing, the excessive strain on the entire global supply chain triggered by operational restrictions resulting from COVID-19 pandemic still remains.

The COVID-19 pandemic is expected to ease with the global vaccination roll out. However, the resurgence of COVID-19 continues in some countries and possible variants are still a great cause for concern. It is difficult to predict when the pandemic and its effects will be over.

Under such circumstances, approximately US$6,000 million profit after tax would be expected for the FY21 1H at the present moment.

The economic environment is now changing 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 FY2021 are yet to be finalized.

5. Actions to Achieve Further Competitiveness

The launch of the new THE ALLIANCE product for FY 2021 which includes the new ASIA-US GULF service (EC6), the merger of the EC1 and EC3 in Asia- EC North America route through the deployment of larger vessels and a restructuring and capacity boost of the Transatlantic services, resulted in increased frequency, improved transit times, and provided a wider range of port pairs. The new Asia-East Africa (EAF) service, where growth is expected, successfully launched in April 2021 with vessels fully loaded.

E-Commerce function, ONE’s brand-new digital instant quotation and booking platform “ONE QUOTE” is successfully expanding since its launch in February 2021 and will enhance new functions, like Epayment and E-signature.

ONE conducted a 2nd successful trial using sustainable biofuel to power the M/V MOL Experience deployed in the Transatlantic service; a positive step forward for ONE’s sustainability initiatives.

ONE has been awarded ISO 9001 for ONE’s Quality Management System (established in April 2018). The system is a strict self-imposed safe ship management system, ensuring safe navigation and cargo operation which meets with international standards and complies with rigorous quality management principals.

ONE became a gold sponsor of ’Flying Angel Campaign’ by The Mission To Seafarers charity to support Seafarers’ Wellbeing under COVID-19 and crew changes despite travel restriction.

6. Reference
(Fleet Structure & Service Structure)

Full Report

Source: K Line, One Ocean Network Express

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping