CONFLICT in the Middle East forcing ships to avoid the Red Sea was a key market influence in the containership and car carrier sectors during 2025, Mitsui O.S.K Lines has confirmed.
The Japanese company has just released its figures for the fiscal year ending 31 March, with revenue of US$17.3bn (around AU$19bn) compared with US$16.24bn the year before.
The operating profit ratio increased to 8.5 percent from 6.3 percent.
The company has issued a forecast a similar revenue figure for the year ending 31 March, 2026.
MOL operates vessels across the maritime sector including dry bulk, box ships, ro-ro and liquefied natural gas.
MOL reported that containership spot rates had remained high, with the impact of larger numbers of ships being offset by tight supply as shipping companies undertook the longer transit via the Cape of Good Hope, avoiding strife-torn Yemen and the southern Red Sea.
“As a result, Ocean Network Express, the company’s equity-method affiliate, also posted a significant year-on-year increase in profit,” MOL reported.
Car carrier shipping demand was said to have remained firm with profits due to improved operating efficiency and favourable exchange rates, even with the impacts of port congestion and “continued avoidance of the Red Sea”.
A research briefing for the UK Parliament earlier this year noted that from November 2023 onwards the Houthis in Yemen launched attacks in the Red Sea against commercial and naval ships, “causing vessels to be diverted away from the region”.
In the MOL dry bulk division, the company reported that capesize market rates remained generally firm in the first half due to steady iron ore shipments from Western Australia and Brazil as well as bauxite shipments from West Africa.
The market rates for Panamax and smaller vessels were said to have been bolstered by solid coal and grain shipments and strong shipments of steel materials from China.
The liquefied natural gas (LNG) carrier business was said to have generated “stable profit” due to existing long-term charter contracts.
In the tanker business, the very large crude carrier (VLCC) market rates were reported to have held steady, with upward pressure due to limited new vessel supply and heightened geopolitical risk offset by downward pressure such as weak demand in China and OPEC as well as oil output changes.