Ocean Network Express (ONE) anticipates a marked improvement in its annual financial results, driven by a rise in freight rates, according to ShippingWatch.
The container carrier, jointly owned by Japanese shipping groups, is benefiting from firmer market rates that are expected to lift full-year earnings compared to previous projections, ShippingWatch reports.
Suez Diversions to Persist
According to ShippingWatch, ONE expects to continue routing vessels around the Cape of Good Hope rather than through the Suez Canal well into 2027. The extended diversion reflects the carrier’s outlook that conditions preventing safe Suez transit will remain in place for a prolonged period, rather than easing in the near term.
Sailing around the southern tip of Africa adds significant distance and time to Asia-Europe voyages compared with the Suez Canal route, a factor that has shaped shipping line capacity planning and contributed to elevated freight rates industry-wide since the diversions began.
Bunker Costs Rise Sharply
ShippingWatch also reports that ONE’s bunker fuel costs increased substantially in the most recent quarter. The carrier paid USD 666 per metric ton of bunker fuel, up from USD 535 per metric ton in the same quarter last year, according to the figures cited by ShippingWatch.
The increase in fuel costs comes even as longer voyage distances from Cape route diversions typically raise overall fuel consumption per journey, adding further cost pressure onto carriers navigating the extended routing.
Does This Matter to You?
For those monitoring bunker fuel pricing trends and vessel routing patterns, ONE’s reported cost increase and continued Cape of Good Hope diversions offer a data point on how major carriers are managing fuel procurement and voyage planning amid ongoing Red Sea-related disruptions. Bunker traders and vessel operators tracking fuel cost trends across major carriers may find the year-over-year price increase relevant when assessing broader market cost dynamics. The extended diversion timeline into 2027 also signals that Suez Canal transit disruptions, and their associated effects on shipping costs and voyage durations, are expected to remain a factor in industry planning for longer than earlier anticipated, according to ShippingWatch.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: ShippingWatch
