Japan’s largest shipping lines saw their profits decline in the second quarter due to the effects of the United States tariff war and reduced their forecasts for all of 2025.
Ocean Network Express said on Tuesday that revenue for the second quarter of fiscal 2025 from June to August was $4.46 billion, down 24% from $5.9 billion in the prior-year quarter, with net profit of $285 million, down 86% from $1.9 billion in 2024.
Profits from the joint venture of Japan’s K Line, MOL and NYK initially soared in 2024 when attacks by the Yemen-based Houthi militia forced global shipping lines to divert services away from the Red Sea and Suez Canal on longer, more expensive voyages around Africa.
Earnings before interest, taxes, depreciation and amortization (EBITDA) were $881 million, down from $2.4 billion, and earnings before interest and taxes (EBIT) were $282 million, down from $2.5 billion.
“Our second quarter fiscal 2025 results underscore ONE’s resilience and stability in a challenging market,” CEO Jeremy Nixon said in a statement. “Despite market fluctuations driven by geopolitical uncertainties, we delivered positive results and secured profitability during the first half of the fiscal year. We maintain a cautious outlook for the full year given the 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.”
The airlines revised full-year EBIT downwards from $400 million to $250 million, and profits from $700 million to $310 million, as both are expected to turn negative in the second half year-on-year. EBITDA remains unchanged.
Container volume rose 1%, trailing growth of 3.7% according to industry-wide data compiled by Container Trade Statistics (CTS). Revenue per twenty-foot equivalent unit (TEU) fell 24.8% year-over-year, matching a CTS decline of 24.9%.
The US trade war affected eastbound trans-Pacific volumes, down 2.6%, and return westbound volumes, down 26.7% year-on-year.
Westbound Asia-Europe volumes increased 11.1% and eastbound volumes improved 6.6%.
Eastbound TransPacific vessel utilization fell from 100% to 91% year-on-year and from 39% to 24% westbound.
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