Financial Results for FY2024 1st Quarter
July 31, 2024

1Index1.

FY2024 1st Quarter Results

P.3

2.

Liftings, Utilization Rates,P.4and Freight Index in Major Trades
3.

FY2024 Full Year Forecast

P.5

4.

ONE’s Response to Recent Changes in theP.6

Business Environment
5.

Reference (Fleet Structure, Service Structure &P.7

New Order)
6.

Appendix: Change of Demand and Freight

P.8

index

©2024 Ocean Network Express Pte. Ltd. All Rights Reserved

2

1. FY2024 1st Quarter Results
OutlineWith a steady recovery in cargo movements as the backdrop, the supply and demand situation for shipping capacity is becoming increasingly tight.
This is impacting spot freight rates which are continuing to rise. For 1Q, ONE’s net profit is US$ 779 million, up 52% from the same quarter of the lastyear.
• Cargo movements are in a recovery trend, with personal consumption spending remaining strong in North America and consumer demand recovering due to easing
inflation in Europe.
• High tonnage supply continued due to the influx of new vessels. However, the continued uncertainty surrounding the situation in the Middle East has led to longer
transit routes with vessels diverting around the Cape of Good Hope (CoGH), resulting in a reversal of oversupply. This same situation has impacted container
equipment availability in some areas.
• Spot freight rates increased compared to 4Q FY2023, across multiple tradelanes including Asia - North America and Asia – Europe due to tight supply and increased
demand.

FY2024 1st quarter results and PL analysis

Revenue
EBITDAEBIT
Profit/Loss
Bunker Price (US$/MT)
Bunker consumption (K MT)
Lifting (K TEU)

1Q
Results
3,765770385513

2Q
Results
3,549
43631187

1H
Results
7,314
1,206
416700FY 2023
3Q
Result3,357
170-248-83$590
799
2,825

$565
862
3,087

$577
1,661
5,911

$625
859
3,105

FY2023 1Q vs FY2024 1Q
Profit/Loss

4Q
Result
3,864
668
223
356

2H
Results
7,221
838-24274

Full Year
Results
14,536
2,044
392
974

$587
934
3,002

$605
1,793
6,107

$592
3,454
12,019❑❑

Increase
Decrease❑❑❑❑© 2024 Ocean Network Express Pte. Ltd. All Rights Reserved.

FY 2024
1Q
Results
4,211
1,217
667779
$594
900
3,142

vs FY2023 1Q
ChangeChange(%)
446
12%
447
58%
28273%
26652%
$4
101
317

1%
13%
11%

(Unit: Million US$)vs FY2023 4Q
ChangeChange(%)
3479%
54982%
444
199%
423
119%
$7-34
140

1%
-4%
5%

Lifting：Increased as cargo demand improved.
Operating Cost ：Increased ship costs and bunker consumption due to the usage ofCoGH diversion：Improved in main trade lanes especially in east-west bound trades.
Freight
Variable Cost
：Hiked container storage cost and inland transportation cost
resulting from higher lifting volume and inflation
Bunker Price：Slightly increased
Overhead Cost ：Increased year on year32. Liftings, Utilization Rates,and Freight Index in Major Trades(Unit: 1,000TEU)
FY2023
Liftings / Utilization by Trades

FY2024

1Q

2Q

1H

3Q

4Q

2H

Full Year

1Q

Results

Results

Results

Results

Results

Results

Results

Results

2,553

673

Asia - North America
EastboundLifting

578

706

1,284

653

616

1,269

Utilization

82%

95%

89%

94%

97%

96%

92%

100%

Asia - Europe
WestboundLifting

385

434

819

382

382

764

1,584

434

Utilization

94%

92%

93%

90%

93%

91%

92%

100%

Asia-North AmericaWestboundLifting

291

295

586

327

295

621

1,208

290

Utilization

44%

40%

42%

46%

49%

48%

45%

43%

Asia-Europe
EastboundLifting

240

221

461

232

238

470

931

245

Utilization

54%

45%

49%

50%

55%

52%

51%

48%

(Unit: 100 = average freight rates as of FY2018 1Q)
FY2023

Freight Index by Trades
Asia-North America
EastboundAsia-Europe
Westbound

FY2024

1Q

2Q

1H

3Q

4Q

2H

Full Year

1Q

Results

Results

Results

Results

Results

Results

Results

Results

126

109

117

108135

121

119

137

139

116

127

106

183

144

135

201

➢ Liftings, Utilization rates: For Asia - North America eastbound, liftings largely improved compared to the previous quarter and YoY, due to a steady growth indemand, as well as the likely impact of early shipments in anticipation of US tariff increases on China. Liftings for Asia - Europe westbound also increased
thanks to the recovery in consumption, and a boost in ocean cargo volume due to increased voyage days. The utilization rate increased largely in both North
America and Europe trades as the supply and demand situation for ships became tighter.

➢ Freight Index : With a steady recovery in cargo movements and prolonged rerouting through the CoGH as the backdrop, the tight supply-demand situation
persisted. Spot freight increased.

© 2024 Ocean Network Express Pte. Ltd. All Rights Reserved.

4

3. FY2024 Full Year Forecast
OutlineThe outlook for the supply-demand balance remains uncertain beyond 2Q. Although forecasting the fullyear of 2024 is extremely challenging, considering various factors and circumstances to the greatest
possible, full-year results for FY2024 are expected to show a profit of US$2,745million.
•••

In particular, the outlook for the 2Q and beyond is extremely uncertain.
The normalization of the Middle East situation is expected to take some time.
ONE will monitor evolving conditions and maintain agile and efficient operations, with a focus on delivering high quality
service to customers.

FY2024 Full Year Forecast(Unit: Million US$)

Previous Forecasts
1H
2H
Forecasts Forecasts

Profit/Loss800200© 2024 Ocean Network Express Pte. Ltd. All Rights Reserved.

Latest Forecasts

Full YearForecasts

1Q
Results

2Q
1H
2H
Forecast Forecasts Forecasts

Full YearForecasts

1,000779

1,466

2,745

2,245500

54. ONE’s Response to Recent Changes in theBusiness Environment

Events➢Cargo movements from Asia to North America during April to June increased by 8.1% year-on-year thanks to the continued
domestic consumption levels in the United States. Movements that appear to be an increase in shipments anticipating theintroduction of additional tariffs on China further boosted cargo movement. Additionally, cargo movements from Asia toEurope increased by 4.4% in April, due to inflationary pressures subsiding and personal consumption starting to pick up. Inaddition, as transportation times become longer due to necessary routing via the CoGH, the volume of on-board cargo has
also increased in certain trades.
➢The increase in supply caused by the influx of the large number of new vessel deliveries has continued. However, surplus
vessel capacity is being absorbed, mainly on Asia-Europe route, due to the prolonged rerouting through the CoGH.
➢Due to increased cargo movement, congestion at major ports, and a shortage of containers, tight supply and demandsituation has spread not only to North America and Europe, but also to north-south routes and intra-Asia routes.
➢In the Panama Canal, restrictions on the number of daily transit and permissible draught are gradually being lifted as thewater level of Gatun Lake improves.

ONE’sresponse➢Implemented flexible counter measures to minimize supply chain disruptions caused by the situation in the Red Sea/Gulf ofAden.
➢In light of the ease of the Panama Canal's traffic restrictions, the North America East Coast service that used to route via
the CoGH has been reverted to via the Panama Canal.
➢Temporarily deployed additional ships on routes with strong demand.
➢In response to port congestion and the shortage of empty containers, a careful review and redesign of our services andports of call has been conducted, as well as the temporary deployment of additional vessels to reposition empty containers.
Proactively procured more containers.

Maximize operational efficiency through flexible vessel deployment and optimization of container flow

©2024 Ocean Network Express Pte. Ltd. All Rights Reserved

65. Reference（Fleet Structure, Service Structure& New Order)
Fleet Structure

Service StructureSize
20,000 TEU>=Capacity (TEU)

1) As of end of2) As of end of JunMar 2024
2024264,600
264,600-

20,000 TEU

Capacity (TEU)

9,800 TEU-

10,500 TEU

Capacity (TEU)

Vessels

Vessels

7,800 TEU-

9,800 TEU

Capacity (TEU)
Vessels

6,000 TEU-

7,800 TEU

Capacity (TEU)
Vessels

5,200 TEU-

6,000 TEU

Capacity (TEU)
Vessels

4,600 TEU-

5,200 TEU

Capacity (TEU)
Vessels

4300 TEU-

4,600 TEU

Capacity (TEU)
Vessels

3,500 TEU-

4,300 TEU

Capacity (TEU)
Vessels

2,400 TEU-

3,500 TEU

Capacity (TEU)
Vessels

1,300 TEU-

2,400 TEU

Capacity (TEU)
Vessels

1,000 TEU-

1,300 TEU

Capacity (TEU)
Vessels0 TEU-

1,000 TEU

12120

657,920
47

46,116
3

110,200
11110,200
110
0346,38939

329,257
37-17,132-2

172,61826

207,12831

34,510533,112
6

28,116
5-4,996-1

78,06816

78,06816

0
058,29413

62,87214

4,578
150,304
12

58,813148,509
284,37031

84,37031

0020,49412

20,49412

0
0

13,96213

14,002
13

40
0

0
0

0
0

0
0

1,844,215
235

1,915,840
243

71,625
8

Capacity (TEU)
Vessels

Total

Capacity (TEU)
Vessels

0611,804
44

Vessels

10,500 TEU2)-1)（FY2024 1Q Structure of dominant andnon-dominant space allocation）

Others22%

Asia-North
America
32%

Intra-Asia
22%
Asia-Europe
23%

Current Orders of New Vessels(Including Long-Term Chartered Vessels)
No. of Order Book (Vessels)

As of end ofMar 2024
46

Delivered in 1Q
FY20246©2024 Ocean Network Express Pte. Ltd. All Rights Reserved

New Order in 1Q
FY2024
5

As of end ofJun 2024
45

7

6. Appendix Change of Demand and Freight index
Liftings(TEU)©2024 Ocean Network Express Pte. Ltd. All Rights Reserved

Freight Index(FY2018 1Q=100)8