Mitsui O.S.K. Lines Expects Strong Capesize Dry Bulk Demand

Mitsui O.S.K. Lines anticipates a robust demand for Capesize dry bulk cargo. In the crude oil tanker market, the supply-demand imbalance was exacerbated due to an increase in ton-miles following the alternative procurement of Middle Eastern cargoes and a decline in effective vessel supply caused by the deteriorating situation in the Middle East and the de facto closure of the Strait of Hormuz.

The Tanker Business, however, saw an uptick in profit compared to the previous year. In the LPG carrier market, the supply-demand imbalance mirrored that of the crude oil tanker market, attributed to a shift in demand towards North American cargoes and congestion in the Panama Canal. The FPSO business continued to generate stable profits from long-term charter contracts.

The LNG and Ethane Carrier Business, however, saw a drop in profit for the quarter due to the absence of a one-time profit from a refinancing project carried out in the previous fiscal year. The Energy Business, incorporating various segments, also experienced a decrease in profit, partly due to the termination of contracts. The Chemical Logistics Business saw earnings rise as Waterfront Shipping Limited, an affiliate, performed solidly.

In the Chemical Tanker Business, although cargo volumes fluctuated due to U.S. tariffs and the Middle East situation, earnings improved due to rising freight rates from April onwards. The Tank Terminal Business, supported by increased export demand from the U.S. for petroleum products and chemicals, remained stable despite goodwill amortization and other expenses.

Profit in the Containership Business increased as freight market rates rose due to strong cargo demand, mainly on routes from Asia to North America and Europe. Profit in the overseas container terminal business remained firm despite higher fuel costs, as Vietnam's import and export cargo volumes increased due to a partial shift of supply chains to Vietnam.

The Logistics Business experienced a decline in profit due to the impact of Middle East tensions on supply chains. The tugboat business, however, saw a rise in profit. Overall, Mitsui O.S.K. Lines anticipates a strong Capesize dry bulk demand outlook for FY2026.