Shutdown! Profits down $5 billion!!!ONE: No choice but to rise to the occasion!

Jeremy said the phenomenally high profits achieved by ONE and its liner shipping industry peers in 2021-2022 were an exceptional phenomenon caused by a specific set of events, rather than one that is expected to continue indefinitely.

This comes after ONE said in late July, when announcing its latest financial results, that global freight demand had fallen sharply, particularly on east-west routes, as retail spending stagnated in Europe and the US.

On the supply side, capacity has increased as port congestion eases and there has been no significant improvement in the weak supply/demand balance. This meant that freight rates remained sharply lower and margins were reduced, and Jeremy pointed to the measures being taken to respond to the new market conditions, hinting at a reduction in the size of the liner network.

When asked to elaborate on these measures, Jeremy flatly stated that ONE would be eliminating some of its trans-Pacific routes on the trans-Pacific routes it operates in partnership with Han Shin Marine Transportation (HMM) and Yang Ming Marine Transportation.

"We actually operate 15 sailings per week, so we are eliminating a schedule program that is specifically for China/Pacific Southwest. This is just an example of how we are just realigning our route capacity by temporarily downsizing to match current demand forecasts. If demand improves in the third or fourth quarter, the service could resume again."

Although the liner industry's high times are over, Jeremy is confident of steady growth in the future.

He says: "We've had a compounded annual growth rate of 6% over the last 25 years. we'll probably be less than 6% in 2023, but let's see what 2024 will look like. We still believe that this business is a good business in the long run and will continue to grow."

ONE is committed to investing $20 billion by 2030 in ships, terminals, containers and IT systems. The company remains committed to doing so based on its positive long-term market outlook.

In addition, the CEO emphasized that the liner industry will always be hit by different events that affect efficiency and reduce capacity, thus affecting freight rates and revenues. He said that such challenges will always affect the container transportation market, where liner companies have no choice but to rise to the occasion.