SINGAPORE: Merged Japanese container carrier Ocean Network Express (ONE) has posted a $105mn net profit for full-year 2019 after post-merger synergies improved its bottom line.

It represented a massive reversal of fortunes for a carrier which posted a $586mn loss in 2018, coming about with a 9.1% increase in revenue to $11.9bn, as well as further cost cuts.

Increased cost efficiency was one of the main reasons behind linking the three container lines, and the merged carrier said that, by the end of last year, it had achieved its target of eliminating more than a million dollars from its combined cost base $440mn was gained from revising variable costs such as inland transport, terminal procurement and container maintenance with another $310mn gained through reduced fixed overheads and $300mn saved via network optimisation and bunker cost savings. Its volumes for the year amounted 12.4mn TEU.

ONE’s financial year runs April to March and its fourthquarter liftings –  ie, Q1 2020 – were modestly robust: on the headhaul, eastbound transpacific trade saw it carry 585,000 TEU and achieve a vessel utilisation rate of 92%, while the westbound Asia-Europe trade brought 443,000 TEU with 100% vessel utilisation.

This came despite the initial effects of the Covid-19 pandemic, which ONE said resulted in stagnating volumes and extra variable costs, but mitigated by its already reduced fixed cost and stable freight rates. This meant its results were in line with forecasts.

However, for the remainder of year, all bets are effectively off, as lockdowns in across the world’s economies have decimated demand.

ONE partner MOL said: “Recent shipments are down by around 10%-20%. Although ONE has taken measures to flexibly reduce service frequencies, a further significant decrease in cargo trade is anticipated, mainly in Europe and the US, due to sluggish demand.”

ONE uses LiveChat to stay connected online to Customers in 10 Countries

Ocean Network Express (ONE) has also announced that it has introduced LiveChat to customers in Mexico, reaching a total of 10 countries to currently have access to this online tool. The service is available in:

* United States of America

* Brazil

* Hong Kong, China

* Netherlands

* Singapore

* Thailand

* South Korea

* Malaysia

* India

* Mexico

ONE started using LiveChat when it launched in 2018 to provide support answering export and import queries. Since the implementation of the LiveChat tool program, ONE has received an average of 8000 chats weekly as well as daily feedback from customers with satisfaction rates at more than 95%. ONE will further enhance its LiveChat service by adding more functions, developing frequently used functions, implementing ChatBot, and expanding the service to a further 8 countries by the end of March 2021.