Japan’s largest ocean shipping lines saw Q2 profits decline on the effects of the U.S. tariff war, and cut their forecast for all of 2025.
Ocean Network Express on Tuesday said revenue for the June-August fiscal 2025 second quarter was $4.46 billion, down 24% from $5.9 billion in the year-ago quarter, with net profit of $285 million, off 86% from $1.9 billion in 2024.
Profits for the joint venture of Japan’s K Line, MOL and NYK initially soared in 2024 as attacks by Yemen-based Houthi militia forced global shipping lines to re-route services away from the Red Sea and Suez Canal on longer, more costly voyages around Africa.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was $881 million, down from $2.4 billion and earnings before interest and taxes (EBIT) was $282 million, from $2.5 billion.
“Our FY2025 2Q results underscore ONE’s resilience and stability in a challenging market,” said Chief Executive Jeremy Nixon, in a release. “Despite the market fluctuations driven by geopolitical uncertainties, we delivered positive results and secured profitability for the first half of the fiscal year. We maintain a cautious outlook for the full year given current market dynamics. We will continue to take steps to adapt our network and optimize our fleet, ensuring we meet market demands and provide customers with long-term reliability.”
China’s second-quarter exports to the United States fell by $30 billion year-on-year, according to the International Trade Centre, even as Beijing made up the difference with expanded sales to Vietnam, Hong Kong, the European Union, and others. The ITC said July exports from China and Singapore to the U.S. were 40% lower y/y.
The carriers revised full-year EBIT down from $400 million to $250 million, and profit from $700 million to $310 million as both are expected to be negative in the second half y/y. EBITDA is unchanged.
Container volume increased 1%, trailing growth of 3.7% per industry-wide data compiled by Container Trade Statistics (CTS). Revenue per twenty foot equivalent (TEU) unit dropped by 24.8% y/y, on par with a CTS decrease of 24.9%.
The U.S. trade war hit trans-Pacific eastbound volumes, down 2.6%, and backhaul westbound volumes, lower by 26.7% y.y.
Asia-Europe westbound volumes increased 11.1% and eastbound volumes were better by 6.6%.
Vessel utilization on the eastbound trans-Pacific fell from 100% to 91% y/y and from 39% to 24% westbound.
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