3 Major Japan Shipping Firms Forecast Profit Falls for FY 2026

Tokyo, May 11 (Jiji Press)--Three major Japanese shipping companies have projected net profit falls for fiscal 2026, due to rising fuel prices linked to tensions in the Middle East.

Nippon Yusen K.K.'s annual net profit is forecast to decrease 7.9 pct from the previous year to 195 billion yen, Mitsui O.S.K. Lines Ltd.'s profit is seen dropping 20.3 pct to 170 billion yen, and Kawasaki Kisen Kaisha Ltd.'s profit is expected to slump 28.6 pct to 95 billion yen.

Nippon Yusen estimates that the situation in the Middle East could reduce its ordinary profit by nearly 20 billion yen. "Fuel prices will greatly impact (the company's earnings)," its president, Takaya Soga, said at a press conference. "We have no idea whether oil prices will normalize soon."

While the shipping companies expect the de facto closure of the Strait of Hormuz to end as early as July, Soga noted that a prolonged closure could decrease maritime traffic volume. "It's difficult to quantify (the impact of the situation) at this point," he added.

Mitsui O.S.K. Lines is bracing for a negative impact of about 24 billion yen. "We're not considering the potential positive effects (of the reopening of the strait) at this stage," CEO Jotaro Tamura said at a news conference on April 30.

[Copyright The Jiji Press, Ltd.]