The CEO of Mitsui OSK Lines Ltd., a prominent Japanese shipping company, has warned that disruptions in the Strait of Hormuz will be longer-lasting than expected. CEO Jotaro Tamura highlighted that escalating attacks are raising the risks for tankers trying to transport oil through this crucial waterway. He expressed doubts about any operational recovery by the year’s end, stating, “The situation continues to be well beyond the level of risk we can accept.”
Tensions between the U.S. and Iran over control of the Strait have intensified, posing increased threats to vessels carrying crude oil. Following the outbreak of conflict, cautious Japanese shipping firms have largely refrained from navigating the region, prompting Japan’s oil refiners to seek alternative sources, including U.S. supplies, while depleting national stockpiles to prevent shortages. Initially, Mitsui OSK had anticipated a gradual resumption of transit, starting this month, but Tamura indicated that this timeline is likely to be extended.
Despite Japanese tankers avoiding locomotion through the Strait in recent months, other ships have navigated the route, sometimes turning off transponders to evade detection. Approximately 6 to 8 million barrels of crude were estimated to traverse the Strait daily, though this figure could have changed after the latest attacks. For Mitsui OSK to resume regular transits, Tamura emphasized the necessity of ensuring safe passage across several voyages, rather than evaluating risk individually per journey. On a brighter note, as Japanese refiners diversify their crude supplies, Mitsui OSK is witnessing increased demand from the U.S. and West Africa, indicating a potential expansion of routes for Japan’s shipping industry.
