MOL Maintains Gulf Shipping Amid Heightened Tensions, Pushes for LNG Sanctions Waiver
Japan’s second-largest shipping company, Mitsui O.S.K. Lines (MOL), has confirmed it will continue operating 15 to 20 vessels through the Gulf region despite mounting geopolitical and security concerns. CEO Takeshi Hashimoto emphasized at the Energy Asia conference on June 17, 2025, that with such a large fleet—including container ships, car carriers, and chemical tankers—it is virtually impossible to halt Gulf services. He noted that alternative routes are unfeasible, particularly as the company avoids the Red Sea due to recent Houthi attacks.
Approximately one‑fifth of global oil consumption passes through the Strait of Hormuz, a vital choke point between the Gulf and the Gulf of Oman. MOL has implemented 24/7 monitoring via its Safety Operation Center, continuously evaluating risk levels. Hashimoto pointed out that vessels flagged to the U.S. or U.K., or those linked to Israel, face the highest level of exposure.
The company also issued a caution that ocean freight rates may rise to offset the higher costs of insurance premiums and enhanced security measures.
Concurrently, MOL is engaging with European Union officials to lift sanctions targeting its LNG carriers. The company argues that its vessels serving Russia’s Yamal LNG project—namely North Moon, North Ocean, and North Light—were not involved in restricted activities and therefore should not be subject to sanctions. These discussions include coordination with the Japanese government and direct negotiation with EU regulators.
MOL is also navigating broader geopolitical headwinds stemming from U.S.–China trade friction. China requires LNG ships calling at its ports to be domestically built, which affects MOL’s new-build strategy. The company continues constructing vessels in China but is reassessing long-term plans for future builds.
Despite these challenges, MOL remains committed to expanding its LNG carrier fleet. The company plans to grow from 108 vessels to approximately 150 by 2030, positioning itself for sustained long-term demand in global LNG transport.
The Strait of Hormuz is a critical artery for global oil shipments—any significant disruption could destabilize energy markets. MOL’s decision to continue Gulf operations underscores the fragile balance between commercial necessity and security risks. Additionally, rising insurance and security expenses may ultimately ripple through to customers in the form of higher freight costs. Finally, the ongoing negotiations over LNG tanker sanctions highlight the complex interplay between international trade, geopolitical strategy, and regulatory compliance.
