MOL Awaits Government Clearance to Resume Gulf Vessel Movements

This updated text incorporates the latest developments regarding the ceasefire, the “BLUE ACTION 2035” management plan, and the pressure from activist investors.

MOL Awaits Safety Clarity and Government Guidance to Resume Gulf Vessel Movements

TOKYO – Mitsui O.S.K. Lines (MOL) is prepared to resume the movement of its vessels currently anchored near the Strait of Hormuz but will remain on standby until it receives official safety clearances and guidance from the Japanese government, President and CEO Jotaro Tamura said on Thursday.

While U.S. President Donald Trump secured a tentative two-week ceasefire with Iran on Tuesday, evidence has yet to surface that Tehran has fully lifted its blockade of the strategic waterway. The disruption has already tightened global energy markets and created significant bottlenecks in international supply chains.

“It is not yet clear how this ceasefire will be implemented in the relevant waters,” Tamura told Reuters in an interview, marking his first major press appearance since assuming the CEO role on April 1. “We must confirm that the safety risks are sufficiently low before moving forward.”

Strategic Impact and Operational Readiness

Despite the general standoff, some movement has occurred. Three MOL-operated tankers—one LNG carrier and two LPG vessels—successfully crossed the strait earlier this month, becoming the first Japan-linked ships to do so since the regional conflict escalated. While Tamura declined to discuss those specific crossings, he confirmed that multiple other vessels remain within the Gulf awaiting passage.

To mitigate immediate risks, the company has secured a sufficient supply of fuel oil to maintain operations through the end of May. However, Tamura warned that a prolonged crisis could have a cooling effect on global trade.

• Short-term risks: Raw material shortages could stifle manufacturing activity, leading to a drop in total cargo volumes.

• Long-term shifts: The crisis may force a “reassessment of economic rationality.” Tamura noted that companies might prioritize supply chain resilience over pure cost efficiency, potentially sourcing energy from more distant locations or holding larger inventories—actions previously dismissed as “uneconomical” during times of stability.

Financial Outlook and Activist Pressure

The geopolitical tension comes as MOL faces internal pressure from Elliott Investment Management. The activist investor recently built a “significant” stake in the company, publicly pushing for improved shareholder returns and better capital efficiency.

Tamura clarified that MOL’s new medium-term management plan, “BLUE ACTION 2035,” which was unveiled in late March, was finalized without influence from Elliott’s specific requests. However, Elliott has since released a statement calling for the plan to go further in closing the valuation gap between MOL and its global peers.

Under the current plan, MOL has forecast a pre-tax profit of 200 billion yen ($1.26 billion) for the fiscal year that began this month. Notably, this projection assumes that the instability in the Strait of Hormuz will settle by the end of April

Tamura indicated that the company intends to provide a revised outlook when it announces its full annual results later this month, though he did not specify whether the target would be adjusted upward or downward in light of the ongoing blockade.