For the Singapore-based liner shipping company ONE, still a partner of Hapag-Lloyd, the clocks tick a little differently, but the trend is the same: There are losses.
ONE’s financial year starts in April and ends in March. In this respect, the carrier led by CEO Jeremy Nixon has not reached the full year in the balance sheet review, as is the case with other liner shipping companies, but only the third quarter. However, the effects of the market, the economy and global disruptions are the same. [ds_preview]
The company, which currently sails the world’s oceans with 230 ships and has 45 newbuildings in its order book, has slipped into the red with a loss of $83 million. In the same quarter of the previous year, the company’s cash register was still ringing with $2.77 billion. Turnover fell by 46% year-on-year to 3.36 billion dollars. The shipping company cites low freight rates as the main reason for this.
ONE with more optimism in its forecast
The outlook for the year as a whole is apparently not quite as gloomy. At $856 million, the forecast for profit after tax is quite optimistic, but is nowhere near the figures for the previous year, when almost $15 billion was posted.
According to ONE, it now wants to react “flexibly” to the “extremely uncertain market conditions” caused by the crisis in the Red Sea and the drought in the Panama Canal. A Middle East service has been completely suspended, ships have been rerouted around the Cape of Good Hope and a land connection has been established via Panama to bypass the canal.
