Ocean Network Express (ONE) reported more than doubling of profit at $5.5 billion for the first quarter ended June 30, 2022 on higher freight rates.

Revenue increased 56 percent to $9.01 billion from $5.8 billion in Q12021. Bunker price zoomed 61 percent to $750/MT from $465/MT in the corresponding period last year.

Liftings declined 5 percent at 2.9 million TEUs compared to 3.1 million TEUs in Q12021, according to a statement announcing the results.

"Compared to Q4FY2021, the lifting on Asia-North America E/B increased due to some improvements in port congestion but liftings and vessel utilisation on Asia-Europe W/B slightly decreased. Compared to the same period of the previous year, the liftings on both Asia-North America and Asia-Europe decreased."

The congestion has eased in Los Angeles and Long Beach but worsened at other North American ports (Vancouver, New York and Savannah, etc.), the release said. "Also, inland congestion is deteriorating again. Congestion in Europe (Hamburg etc.) continues.

"In China (Shanghai, Shenzhen etc.), reoccurring lockdowns have caused trucker shortages and yard congestion. Although the lockdown was lifted in June, subsequent strict measures have made recovery slow."

Initiatives for 2022
"ONE is implementing its ambitious fleet growth programme, and in May confirmed a $1.6 billion order of 10 Very Large Container Ships," says CEO Jeremy Nixon. "Scheduled to be delivered in 2025, the orders will be fulfilled by Japan's Nihon Shipyard and South Korea's Hyundai Heavy Industries yards. Each vessel will have a capacity of 13,700 TEU.

"Addressing the continued global container shortage, ONE has already purchased 3000 reefer containers and 30,000 dry containers in 2022."

Though there are some improvements, there remains an excessive strain on the entire global supply chain, the statement added.

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