Ocean Network Express more than quadrupled its second-quarter net profit and raised its full-year earnings forecast to $2 billion, as stronger freight rates and higher cargo volumes outweighed rising operating costs.
The Singapore-based container shipping company co-owned by three Japanese carriers reported net profit of $1.318 billion for the July–September quarter, compared with $285 million a year earlier. Revenue rose about 41% to $6.27 billion from $4.45 billion. The period represents the second quarter of its fiscal year ending March 2027.
The carrier increased its annual net profit forecast from $900 million to $2 billion and lifted its revenue outlook from $19.4 billion to $21 billion. It was the company’s second profit-guidance upgrade this fiscal year, following an increase from $300 million to $900 million after its first-quarter results.
ONE carried 3.396 million twenty-foot equivalent units, or TEUs, during the quarter, up 6.3% year-on-year. Its average freight rate increased to $1,709 per TEU from $1,252, helping offset higher fuel, vessel and other operating expenses.
“The second quarter delivered a strong financial performance, contributing to a solid first half of FY2026,” Chief Executive Till Ole Barrelet said in the company’s earnings announcement. “These results reflect our teams’ success in growing cargo volumes and achieving higher utilization despite a challenging operating environment.”
First-half revenue reached $10.812 billion, while net profit totaled $1.35 billion, compared with $371 million a year earlier. The figures show that nearly all of the company’s first-half profit came in the second quarter.
Demand on trans-Pacific routes benefited from U.S. inventory replenishment and shipments of equipment for data centers and industrial applications. Latin American and intra-Asian services also recorded positive demand, while Asia–Europe routes faced greater pricing pressure as available capacity increased.
Despite the stronger earnings, ONE expects seasonal demand to moderate and spot freight rates to ease during the second half. It nevertheless anticipates rates remaining above the levels assumed in its previous forecast, with a modest increase ahead of Chinese New Year.
The outlook remains sensitive to shipping disruptions in the Middle East and changes in routing through the Suez Canal. The company’s revised forecast assumes current conditions in the Strait of Hormuz persist through the fiscal year-end and Suez transits recover gradually. A return of more services to the Suez route could increase available capacity and put further pressure on freight rates.
“Looking ahead, we will adapt our network in response to evolving conditions, with safety remaining our top priority,” Barrelet said.
Why it matters: Higher freight rates and cargo volumes drive a sharp earnings rebound for Ocean Network Express, the 10th-largest ocean carrier, a good sign for the broader liner industy.
Read more articles by Stuart Chirls here.
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