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

Nippon Yusen estimates that the situation in the Middle East could reduce its ordinary profit by nearly ¥20 billion. "Fuel prices will greatly impact (the company's earnings)," its president, Takaya Soga, said at a news 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. "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.

Kawasaki Kisen attributes about half of an estimated ¥9.1 billion decrease in its ordinary profit to the blockade of the Strait of Hormuz, according to President and CEO Takenori Igarashi.

In fiscal 2025, which ended in March, the three shipping companies saw their respective net profits nearly halve, partly due to falling freight rates caused by an increase in the supply of new container ships.

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