Mitsui O.S.K. Lines (MOL) from Japan is pausing the movement of its vessels through the Strait of Hormuz until it gets clearer safety assurances and guidance from the Japanese government. The CEO, Jotaro Tamura, emphasized the ongoing uncertainty despite a temporary ceasefire in the area.

Tamura, who recently became president and CEO, mentioned that the company is ready to resume operations when it is safe to do so but is being cautious due to the risks that remain after the recent U.S.-Iran conflict.

“It’s not yet clear how this ceasefire will be put into action in the relevant waters,” Tamura told Reuters. “We need to ensure that safety risks are at a low level.”

While a two-week ceasefire has eased some tensions, there is no confirmation that Iran has completely lifted the restrictions on this crucial waterway, which is vital for about 20% of the world's oil supply. Shipping activities in the area have been significantly affected, leading to tightened energy supply chains and increased shipping and insurance costs.

Tamura added that MOL is also waiting for official instructions from Tokyo before moving forward. “We are looking for guidance from the Japanese government,” he said, stressing the need for coordination due to the security risks involved.

Some shipping has started again. Earlier this month, three MOL-operated tankers, including one carrying liquefied natural gas (LNG) and two carrying liquefied petroleum gas (LPG), successfully crossed the strait. This marked the first Japan-related shipments through Hormuz since the conflict began. However, many vessels continue to remain in the Gulf, waiting for safer conditions to pass.

The company has enough fuel supplies to continue operations until the end of May, according to Tamura. However, he cautioned that ongoing instability could negatively impact global manufacturing and shipping demand.

“If the conflict continues, shortages of raw materials could hurt manufacturing and lead to reduced cargo volumes,” he warned.