Ocean Network Express container liftings decrease on blank sailings, port congestion

Japanese container carrier ONE said Jan. 31 its container liftings for its fiscal third quarter trended lower amid operational bottlenecks and reduced vessel sailings.

Container liftings on the Asia-North America trade registered a 13% decrease to 564,000 TEU against the company's second quarter. Similarly, Asia-to-Europe liftings dropped just over 7% to 411,000 TEU.

"The liftings on Asia-North America E/B decreased from Q2 due to the Chinese National Day and end of year holidays," the company said in an earnings statement. "The liftings also decreased compared to FY2020 Q3 due to port congestion mainly in the U.S. West Coast terminals.

Vessel utilization remained at or near 100% for the Asia-to-Europe and Asia-to-North America trades but dipped as low as 69% during Q3 on the Europe to Asia backhaul.

The company also expects earnings to improve significantly and projects an EBIT of just over $12 billion for the fiscal year ending April 30.

Most ocean liners are expected to report significantly improved financial results for 2021, as global logistical constraints propped freight rates to record highs.

The Platts Container Rate Index – a weighted average of Platts' key assessments – rose Jan. 31 to $6,987.25, an increase of 63% on the year.

"We continue to experience a dislocation in the capacity and velocity of supply chains between the marine and inland operational environments," ONE said. "The operational port situation is expected to remain challenging globally for the majority of calendar 2022 based on latest assessments."

ONE is a container shipping joint venture between Japanese shipowners NYK, MOL and "K" Line and a member of THE Alliance.