Ocean Network Express predicts 75 per cent reduction in full-year profit for 2025/26 as a result of protectionist measures
Singapore-based container shipping group Ocean Network Express expects a dramatic downturn in its net profit over the next year, mainly as a result of the US administration’s decision to introduce a range of tariffs on imported goods.
In a report on its financial results for the year to March 2025, the company forecast a full-year profit after tax of approximately US$1.1bn, a figure that more or less cancels out the previous year’s 336 per cent increase in net profit to US$4.24bn.
“Considering the prevailing geopolitical landscape and the significant economic instability introduced by recent tariff developments in April, forecasting a precise full-year profit figure for FY2025 presents considerable challenges,” it noted.
In stark contract to the past year’s “relatively stable business environment”, it added, the “heightened uncertainty” created by Trump’s protectionist measures are expected to mean “potential headwinds such as weakened cargo volumes in specific trade lanes and reductions in freight rates across global markets”, it stated.
Strong performance
Jeremy Nixon, CEO of Ocean Network Express (One), said the company was pleased with the result it had achieved over the past year, especially considering the current “ongoing geopolitical tensions and regional economic uncertainties”.
The company said surplus vessel capacity had been absorbed over the previous 12 months by extended rerouting of vessels around the Cape of Good Hope and port congestion.
While it described overall cargo movement during the period as “stable”, it noted “weakness” in the market, particularly on east-west routes. “As a result,” it said, “the freight rates have continued to trend downward since the Lunar New Year.”
In February, One formed a partnership called The Premier Alliance with HMM and Yang Ming, to share vessels in trades between the US and Asia, the Middle East, and Europe.
Along with a number of other service partnerships, this has apparently enabled One to expand its global network further in 2024-25.
“We remain fully committed to delivering strong, reliable, and highly dependable end-to-end direct port container services to our valued customers,” Nixon commented.
