Ocean Network Express (ONE) has booked a first-half profit of more than $6.7bn on the back of a stellar second-quarter performance.
The Japanese-owned company said the increase in its performance was due mainly to the continuous strong market, with global container trade volumes in July to September increasing by nearly 10% year on year.
"Vessel utilisation was at full capacity due to the strong cargo demand, while the turmoil within the entire global supply chain worsened in the second quarter," the Singapore-headquartered company said.
"The increased cargo demand, typhoons in Chinese ports and labour shortages due to the Covid-19 pandemic have worsened both port and inland congestion.
"Increased container dwell times occurred due to truck and chassis shortages, while international travel restrictions made flexible crew changes difficult."
The company forecast full-year profit after tax of $11.7bn on the back of the continued strong market. Full-year profit in 2020 was $3.48bn.
"Though the cargo demand is still strong, $5bn profit after tax would be expected for the second half of 2021, taking into consideration some cargo volume decrease due to seasonal influences, such as Chinese New Year," it added.
TradeWinds reported in mid-October that ONE was lining up an order for up to 15 neo-panamax dual-fuel containership newbuildings that could cost more than $2.5bn.
If the company takes the plunge, it will be its first newbuilding deal since its launch in 2018. The liner company does not own any containerships, with all its vessels chartered in.
ONE was formed in 2017 through the merger of the liner operations of K Line, Mitsui OSK Lines and NYK Line.
