Nippon Yusen, the largest shipping company, has canceled Red Sea sailings due to rising tensions between Yemen's Houthi rebels and the US military, and has been forced to bear the burden of additional fuel costs and other costs incurred by using detour routes. We have indicated that we will continue to negotiate with the shipper regarding this issue.
In response to rising tensions between Yemen's Houthi rebels and the U.S. military, three major Japanese shipping companies, including Nippon Yusen, have temporarily canceled sailings in the Red Sea and are moving to destinations such as the Cape of Good Hope in Africa. I'm using a roundabout route.
NYK Executive Officer Takashi Yamamoto said at a press conference on the 5th to announce the company's financial results that shipping companies are temporarily bearing the additional fuel costs and other costs that arise from using the detour route, and added, ``Customer "We have to consult with the shipper regarding costs," he said, indicating his intention to negotiate with the shipper's company regarding how the burden should be borne.
Executive Officer Yamamoto also said that the transportation of automobiles, especially between Europe and Asia, has been in a tight situation for some time due to a lack of ships to transport them, and not being able to pass through the Red Sea has caused costs to rise and He predicted that the impact would be even greater, with transportation taking longer.