The Japanese company Mitsui OSK Lines (MOL) wants to unblock its ships blocked near the Strait of Hormuz as soon as possible, but must first guarantee the safety of the passages and receive directives from the Japanese government, its general director said on Thursday.
Although US President Donald Trump agreed to a two-week ceasefire with Iran on Tuesday, there is no sign yet that Tehran has lifted its blockade on the strategic waterway, which has disrupted global energy supplies and crippled supply chains.
“It is not yet clear how this ceasefire will be implemented in the waters concerned,” MOL President and CEO Jotaro Tamura told Reuters in an interview. “It must be confirmed that the security risks are sufficiently low.”
He added that the company was also awaiting instructions from the Japanese government.
Three of MOL’s tankers – an LNG carrier and two LPG vessels – crossed the strait earlier this month, becoming the first Japan-linked vessels to do so since the start of the conflict. Mr. Tamura declined to comment on these crossings, but said several ships remain in the Gulf.
Mr. Tamura, promoted to his current role on April 1, said the company had secured enough fuel oil for its operations until the end of May.
If the conflict drags on, shortages of raw materials could affect manufacturing activity and reduce freight volumes, he said. Longer term, however, the crisis could benefit the maritime sector if companies work to strengthen the resilience of their supply chain.
“If reassessments occur in the resources and energy sectors, decisions that previously relied on economic rationality in normal times could be judged rational even if they are not profitable,” he said, referring to sourcing from more remote sites or higher costs, or the creation of additional stocks which would previously have been perceived as an unnecessary expense.
REVISION OF RESULTS FORECASTS
Elliott Investment Management has taken a “significant” stake in MOL, pushing the shipping carrier to improve shareholder returns and capital efficiency.
Mr Tamura declined to comment on discussions with individual shareholders, but said the mid-term management plan announced in March had not been influenced by Elliott’s demands.
Under the plan, MOL expected a pre-tax profit of 200 billion yen ($1.26 billion) for the financial year that began this month.
However, Mr Tamura said the company plans to revise its outlook when it announces its annual results later this month. He did not specify whether this revision would be upwards or downwards.
($1 = 158.9700 yen)
