ONE Reports $4 Billion Quarterly Profit and Expects $12 Billion For The Year

Japanese ocean carrier Ocean Network Express (ONE) said it now expects a net profit of nearly $12bn for its financial year ending 31 March 2022, following a $3.5bn surplus the year before.

ONE posted a profit of $4.2bn for its second quarter, for an H1 result of $6.76bn, but said although cargo demand was still strong, it expected some “volume decrease” around Chinese New Year and anticipates $5bn of profit for H2.

Revenue for Q2 was $7.6bn, up 125% on the year before, from just a 4% increase in liftings, to 3.2m teu, for an average rate of $2,375 per teu. This compares with $1,032 per teu previously.

24000 x 2375 = 57,000,000 dollars profit for one fully loaded eastbound transpacific trip. Note the profit is per TEU ( 20 foot equivalent unit) . We used to carry 350 reefer containers full of fish, beef, pork to Asia every trip plus other cargo on the return trips when I worked at APL. We didn’t return empty to Asia. I heard that APL was paid $10;000 / reefer container which equals $3.5 million just for only 350 boxes. That paid for the return trip by itself back in 2009. Remember a 40 foot container carries 40,000 pounds of products. We used to hit Dutch Harbour in the summer and load fish on the way to Yokohama, Busan, and Xiamen. $10000 dollars only adds 25 cents / pound to the the product cost at that time not todays prices.

I have sailed on what was a “fully loaded” container ship with Maersk out of Kaohsiung, Taiwan . I don’t know if every container was full or not. Point being that the shipping companies are making bank and the Filipino, and Indian seamen are making peanuts. I met a Filipino seamen off the Emma Maersk in Genoa Italy while waiting for a ride out to the gate in the terminal. I said wow thats a big ship. His reply “ Big ship, little money.” It was the largest container ship in the world at that time, 2007.

lots of 3rd world deck crew are starving at home so you can get them for $20-$50 per day helps with the bottom line whilst the rates are the highest the world has ever seen.

Supply and demand = Capitalism
Maximize profit for the stake holders = Capitalism

Conclusion:
ONE is practicing Capitalism, as does companies in other countries and industries.

Examples:
High tech companies that try to monopolize market and minimize taxes while pretending to be “good citizens” of their home country.

That draw the ire of Governments worldwide.
But that last bit will soon come to an end now, if we are to believe the latest news.