Three major Japanese shipping companies have projected net profit declines for fiscal 2026 due to rising fuel prices linked to tensions in the Middle East, reports the Japan Times.

Nippon Yusen expects its net profit to fall by 7.9 percent to JPY195 billion (US$1.23 billion). Mitsui OSK Lines forecasts a 20.3 percent drop to JPY170 billion, while Kawasaki Kisen Kaisha projects a 28.6 percent slump to JPY95 billion.

Nippon Yusen President Takaya Soga stated that fuel prices could reduce ordinary profit by nearly JPY20 billion, adding that it remains unclear when oil prices might normalize. He warned that a prolonged closure of the Strait of Hormuz could further reduce traffic volumes.

Mitsui OSK Lines CEO Jotaro Tamura mentioned that the company is bracing for a negative impact of about JPY24 billion and is not factoring in potential benefits from a reopening of the Strait of Hormuz.

Kawasaki Kisen President Takenori Igarashi attributed about half of an estimated JPY9.1 billion decrease in ordinary profit to the blockade of the Strait of Hormuz.

In fiscal 2025, which ended in March, the three companies saw net profits nearly halve, partly due to falling freight rates caused by an increased supply of new containerships.