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Mitsui OSK CEO: Shipping in Gulf is continuing, and we are closely monitoring the situation

Japan's second-largest shipping company, Mitsui O.S.K. Takeshi Hashimoto, CEO of Lines (MOL), said that the company is continuing to operate as usual in Gulf while closely watching the situation in the area.

Hashimoto said on the sidelines the Energy Asia Conference that "we are operating so many container, car carriers, and chemical tankers, so it is very difficult for us reduce or stop the service."

He added that although there was no alternative route in the Gulf for shipping, it had been re-routed to the Cape of Good Hope following the attack by the Yemeni Houthis on ships in the Red Sea.

The Strait of Hormuz is a vital waterway that connects the Gulf of Oman to the Gulf of Arabia. It accounts for about a fifth of all oil consumed worldwide.

MOL's fleet includes 15-20 vessels which regularly travel through the Gulf. Hashimoto added that MOL is monitoring the situation 24 hours a day and evaluating the risks to its entire fleet.

Hashimoto stated that ships with Israeli flags or those flying the U.S. or UK flags were at greatest risk.

MOL may increase its ocean freight rates in the future, when insurance and security costs are added.

Hashimoto stated that the company would continue to avoid shipping on the Red Sea.

Separately MOL, which is the largest LNG carrier in the world, has been in talks with the European Union about lifting the ban.

The following are some of the sanctions that may be imposed on you

From its liquefied Natural Gas tankers.

Hashimoto, in reference to the Russian export project, said: "We provided a vessel to Yamal LNG Project which was not a targeted of sanctions." We are therefore confident that our vessel will not be targeted by sanctions. (Reporting and editing by Alex Richardson, Louise Heavens, and Yuka Obayashi; Additional reporting in Tokyo by Yuka Tan)

(source: Reuters)