Japan's Kawasaki Kisen prepared to reroute more ships away from US over tariffs, CEO says

"There person been times erstwhile ships couldn't beryllium afloat loaded connected immoderate routes, and erstwhile we reduced the frequence of instrumentality services from East Asia to the U.S.," Igarashi, who took his station successful March, told Reuters successful an interview.

"We're adjusting our fleet capableness according to cargo volumes."

One of Japan's large shipping companies, Kawasaki Kisen has factored successful a 30 cardinal yen ($200 million) interaction from U.S. tariffs for the fiscal twelvemonth done March 2026, citing a deed to the car bearer concern and little instrumentality volumes and freight rates.

Igarashi said that the instrumentality vessel concern would beryllium particularly affected by the result of U.S.-China tariff negotiations, which the institution was intimately watching.

U.S. President Donald Trump has threatened higher tariffs connected a scope of trading partners unless they hold commercialized deals earlier an August 1 deadline.

Depending connected the tariff rates that assorted countries yet look and what they bash to commercialized flows, determination could beryllium immoderate affirmative interaction if shipping distances lengthen, Igarashi said.

To set to tariff-related request astatine the operational level, Kawasaki Kisen could redirect vessels from U.S. routes to Europe, the Middle East, Australia and Africa, helium said.

"When it comes to strategical adjustments, we may, for example, trim assets successful the signifier of vessels a bit, but unless we are wide astir the absorption of commercialized policies, we can't abruptly marque drastic cuts," helium said. "We're inactive successful the wait-and-see phase."

($1 = 149.8000 yen)

(Reporting by Kentaro Okasaka. Editing by Chang-Ran Kim and Mark Potter)