Yen volatility disrupts global shipping markets

Mitsui OSK Lines Chairman Takeshi Hashimoto stated that extreme volatility in the Japanese yen creates a confused situation in global financial markets. The company generates the majority of its revenue in U.S. dollars, a structure that inherently benefits from a depreciating yen. However, Hashimoto warned that the magnitude of recent currency swings poses operational risks that outweigh the accounting advantages.

Hashimoto specified a comfortable exchange rate range of 150 to 155 yen per dollar. The currency recently traded near the 153 level, sitting within this preferred band. This stability is critical for planning and hedging strategies across the shipping sector, according to the executive.

Currency instability drives market uncertainty

The Japanese currency hit multi-decade lows in 2026 before Tokyo intervened. Washington joined in a joint intervention that temporarily strengthened the yen. These rapid reversals create unpredictability for international trade partners and investors. Mitsui OSK, the world’s largest tanker owner and operator, faces direct exposure to these fluctuations. The company’s competitive position depends on predictable cost structures in foreign currencies.

Strait of Hormuz traffic hits lows

Hashimoto expressed pessimism regarding a quick recovery in shipping services through the Strait of Hormuz. He described the resumption of normal service in the waterway as almost impossible for the current period. Data from analytics firm Kpler confirmed a sharp decline in transit volumes. An average of only 10 commodity ships passed through the strait daily over the past 10 days. This represents the lowest recorded figure since May.

The executive anticipates that diplomatic talks between Iran and Persian Gulf nations will influence the situation. He expects a reasonably good outcome from negotiations with Oman and Qatar. However, he emphasized that the process will take time. Market participants are advised to maintain conservative projections for regional logistics in the near term. Hellenic Shipping News reported on the broader implications of these geopolitical and financial shifts.