Mitsui O.S.K. Lines Ltd. (MOL), one of the world’s leading multimodal shipping and marine transportation companies, forecasts a tougher fiscal year 2026 for its logistics business due to rising fuel costs and increased costs resulting from the impact of Middle East tensions.
MOL issued its forecast for fiscal year 2026, ending in March 2027, following the recent release of its first quarter financial performance. The forecast is based on the assumption that navigation in the Persian Gulf will not normalize until around July 2026, and navigation through the Red Sea will remain unavailable until the end of March 2027.
For its containership business, MOL expects continued increases in vessel supply from new vessel completions and rising fuel costs against the backdrop of Middle East tensions are anticipated. However, through route restructuring and agile vessel deployment, a certain level of profit will be secured for the full fiscal year 2026.
In the vehicle transport business, a partial decrease in profit is expected due to the impact of the closure of the Strait of Hormuz on vessel deployment to the Persian Gulf and rising fuel costs.
The company said it will closely monitor global political and economic conditions affecting automobile sales and completed build-up vehicle transport. It will achieve efficient operations through agile vessel deployment.
In the terminal business, MOL said that handling volumes at domestic container terminal operations are expected to remain firm. Regarding overseas container terminal operations, the company plans to continue proceeding with the transfer of shares in remaining terminal companies.
In the logistics business, while changes in customer needs resulting from external factors such as Middle East tensions and fluctuations in procurement costs are anticipated,
The company said it will work to improve its financial results through agile sales and procurement activities to address changes in customer needs resulting from external factors such as the Middle East tensions and fluctuations in procurement costs.
Accordingly, MOL said that the overall Product Transport Business expects a decrease in profit compared to the previous fiscal year.
