Ocean Network Express (ONE) slipped into the red in the third quarter of its fiscal year 2025, reporting a net loss of $88 million on revenue of $4.07 billion as persistent overcapacity and softer demand weighed on container markets.

The Singapore-based carrier said results for the October–December period were undermined by continued newbuild deliveries that kept fleet supply ahead of demand, even as cargo volumes cooled across major trade lanes.

“Our 3Q FY2025 results reflect a challenging operating environment,” said Jeremy Nixon, CEO of Ocean Network Express, citing weaker market conditions despite efforts to manage capacity, control costs, and optimize the network.

The loss marks a sharp reversal from the previous quarter, when ONE posted a $285 million profit fueled by front-loading ahead of anticipated U.S. tariffs. That burst of demand—particularly on the transpacific—proved short-lived, with volumes fading as shippers shifted to a more cautious stance.

Asia–North America volumes declined both quarter-on-quarter and year-on-year, with the sharpest weakness seen in October and November after the front-loading wave subsided. Asia–Europe trades held up slightly better, with volumes dipping after China’s Golden Week before stabilizing toward year-end.

On the supply side, the steady arrival of new vessels continued to loosen the supply-demand balance, pressuring utilization and keeping spot freight rates below year-ago levels throughout the quarter. Rates also slipped further from already-soft second-quarter levels.

Operational costs remained elevated as vessels continued routing around the Cape of Good Hope to avoid security risks in the Red Sea and Gulf of Aden. While longer voyages helped absorb some excess capacity, they also increased transit times and expenses.

Looking ahead, ONE struck a cautious tone, forecasting a modest recovery in the fourth quarter. The outlook assumes continued Cape routings and a gradual improvement in volumes, though the carrier acknowledged freight rates remain softer than expected.

The weak third quarter is reflected in ONE’s full-year guidance. After earning $371 million in the first half of fiscal 2025, the company now expects full-year profit of $310 million—implying a $61 million loss in the second half.

ONE’s outlook comes as some operators have begun rerouting Suez services back through the Red Sea on an interim basis, assuming the security situation in the region remains unchanged.

Nixon said ONE is leaning on operational flexibility and partnerships to navigate ongoing volatility. The carrier has adjusted port calls and service rotations to improve schedule reliability and continues to review its cargo mix to support yields.

ONE also unveiled the Premier Alliance’s planned 2026 East-West network, aimed at stabilizing services as container markets remain under pressure.

ONE’s fiscal year runs from April 1 through March 31.