Mitsui OSK CEO says shipping in Gulf continues, closely monitoring situation
SINGAPORE: Japan's second-largest shipping company, Mitsui O.S.K. Lines (MOL), is operating as usual in the Gulf while closely monitoring the situation in the region, CEO Takeshi Hashimoto said on Tuesday.
"We are operating so many containers, car carriers and chemical tankers so that it is very, very difficult for us to reduce or stop with the service," Hashimoto told Reuters on the sidelines of the Energy Asia conference.
Shippers re-routed via the Cape of Good Hope after Yemeni Houthis attacked ships in the Red Sea, but there is no alternative route for shipments in the Gulf, he added.
About a fifth of the world's total oil consumption passes through the Strait of Hormuz, a critical waterway between the Gulf and the Gulf of Oman.
MOL has 15-20 vessels that regularly go through the Gulf, Hashimoto said, adding that the company is watching the situation 24/7 and evaluating risks across its fleet.
Ships that are related to Israel or carry U.S. and UK flags are at maximum risk, Hashimoto said.
MOL could increase ocean freight rates at some stage with the addition of insurance and security costs, he added.
The company will also continue to avoid shipping in the Red Sea, Hashimoto said.
Separately, MOL, the world's largest LNG carrier, is in talks with the European Union to lift sanctions from its liquefied natural gas tankers.
"We provided a tanker to Yamal LNG project which was not a target of sanctions," Hashimoto said, referring to the Russian export project. "Therefore we are strongly confident that our vessel should not be a target of sanctions."
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