Ocean Network Express (ONE) has sharply revised up its financial guidance following a solid second quarter, with higher freight rates and cargo volumes leading to a pronounced recovery in profitability.

The Singaporean container shipping firm, owned jointly by three Japanese shipping groups, said it posted a net profit of $1.318 billion in the July-September period. This was more than four times the $285 million recorded in the same quarter last year.

Revenue also surged, up about 41% to $6.27 billion from $4.45 billion in the comparable period a year ago. Results are for the second quarter of ONE’s fiscal year ended March 2027.

Following the strong performance, the carrier raised its full-year net profit forecast to $2 billion from its previous projection of $900 million. It also raised its revenue guidance, to $21 billion from $19.4 billion.

ONE has raised its earnings expectations for the current financial year for the second time. The company, which had already increased its net profit forecast to $900 million from $300 million after reporting first-quarter results,

Improved financial performance from increased freight rates

ONE’s earnings growth is driven by higher shipping volumes and freight rates.

The carrier handled 3.396 million twenty-foot equivalent units (TEUs) in the second quarter, a 6.3% increase year on year.

Average freight rates also rose significantly to $1,709 per TEU from $1,252 a year ago. This improvement in pricing helped to mitigate higher fuel costs, vessel operating costs and other operating expenditure.

Results reflected the impact of higher cargo volumes and better vessel utilization, Chief Executive Till Ole Barrelet said.

“The second quarter was a strong financial quarter and adds to a solid first half of FY2026,” Barrelet said in the company’s earnings announcement.

“The results reflect the teams’ ability to grow cargo volumes and achieve higher utilization in a challenging operating environment,” he said.

ONE’s half year financial numbers give a further picture of the magnitude of the rebound. Revenue came in at $10.812 billion, while net profit was $1.35 billion, up from $371 million in the first half of the previous financial year.

Indeed, almost all the profit for the first half came in the July-September quarter, highlighting how much financial performance improved during the period.

Demand conditions are mixed on trade lanes

Demand in ONE’s international network has not been evenly developed, with certain key trade lanes providing better support than others.

Trans-Pacific services were bolstered by a resurgence of U.S. inventory restocking and equipment shipments for data centers and industrial usage. These cargo flows helped sustain demand on routes between Asia and North America.

The company also said it saw positive demand conditions in Latin American services and intra-Asian trade.

The Asia–Europe market, however, saw more pricing pressure Shipping capacity was higher on these routes, adding pressure on freight rates and illustrating the ongoing challenge for carriers of matching vessel supply with cargo demand.

With shipping lines entering the second half of the financial year, pricing discipline and network management take on added importance in this uneven market environment.

The company is looking for softer rates in the second half

ONE is preparing for a possible weaker market for the rest of the fiscal year as it sees an improved earnings forecast.

The company anticipates a moderation in the seasonal demand and a decline in the spot freight rates in the second half of the year. Rates are expected to stay higher than management had projected in its last financial forecast.

The carrier is also looking for a modest increase in freight rates ahead of Chinese New Year which may provide some pricing support over the next few months.

But the outlook is still vulnerable to geopolitics and disruptions to global sea lanes, especially in the Middle East and near the Suez Canal.

ONE’s new financial estimates assume that the current situation in the Strait of Hormuz will continue to the end of its fiscal year. and they also expect to see a gradual recovery in vessel transits through the Suez Canal.

A broader resumption of shipping services on the Suez route could have major implications for the container market. The prospect of shorter routing distances would release further effective shipping capacity, improving vessel availability and putting downward pressure on freight rates.

The company said it continues to closely monitor developments as it adjusts its network to changing operating conditions.

“We will adapt our network to environmental changes going forward, with safety being our number one priority,” Barrelet said.

Major change in the world container shipping industry

The latest results from ONE are a positive sign of the earnings potential in container shipping, where freight rates and cargo demand are the main drivers of financial performance.

Ocean Network Express is a leading player in the global liner industry and the world’s 10th largest ocean carrier. Its return to much higher profitability is a demonstration of how higher freight rates, vessel utilization and cargo volumes can quickly turn around the financials of shipping companies.

But the outlook for the next few quarters is uncertain. Freight rates will be affected by seasonal demand trends, excess vessel capacity, geopolitical tensions, and the possible reopening of the Suez shipping corridor.

ONE’s challenge is to maintain the financial momentum it has built in the first half of the year while positioning its network for a potentially less favorable market environment.