Hormuz disruption boosts shipping rates, Mitsui O.S.K. CFO says

Japanese shipping operator Mitsui O.S.K. Lines is experiencing higher freight rates and an earnings boost due to the de facto closure of the Strait of Hormuz, according to Chief Financial Officer Kazuya Hamazaki. The vital waterway has been effectively closed for approximately one month, impacting global energy and commodity flows.

CEO Jotaro Tamura stated that shipowners are likely to delay resuming transit through the Strait of Hormuz for several weeks until they are assured that the recently announced US-Iran agreement is effectively implemented. He indicated that a "material" agreement, translating into tangible security improvements, is necessary before shipping companies regain confidence to fully return to the route. Tamura suggested a gradual return of shipping activity could take "at least a couple of weeks, if not a month," even after a political agreement is reached.

Despite indications from US President Donald Trump that oil-laden vessels have begun moving through a secure southern route in the Strait, industry sentiment remains cautious. Shipowners are prioritizing operational safety and waiting for sustained stability before resuming normal transit levels. The disruption has impacted not only crude and LNG shipments but also key commodities such as aluminum and urea, which are critical for global supply chains.

Mitsui O.S.K. Lines, one of Japan’s largest shipping firms with a fleet exceeding 900 vessels, is closely monitoring security conditions in the region. The company has described the impact of the Iran war on Strait of Hormuz transit as an "urgent issue" for its operations, with the safety of crews being the highest priority.