MOL CEO on Global Shipping Outlook

So we are seeing potential pricing looking more favourable as a result of some of these geopolitical tensions. Do you think broadly on balance is that more of an upside or are you more concerned about the impact on trade volumes? Yeah, yes, there are various factors that the since the the Palestinian the problem happened that the Suez Canal we could not use therefore that the generally that the demands and supply balance it's relatively tight. In addition to that the recently that that we observed that the the total cargo volume from Asian markets to both North America and Europe are steadily increasing and it's create the the tight the market situation perhaps that this trend will continue for a time being. How much concern are you really feeling at the moment when it comes to the impact of US tariffs on Chinese goods, potential retaliation, any kind of volatility and impact on global trade following the November US election. Yeah that the, the little bit too early to say, but the the the certainly that this can be the quite big the, the potential factor for us. But that look at the market out of today that the total volume of the cargo flow from Asian markets to North America is actually increasing not decreasing. And the perhaps the one of the reason is that the relocation of the the export terminal from the the China to other Asian countries including India, so that the rapidly rapidly increasing so that the total volume of the Asian U.S. trade is quite steadily the recovering in time with the US economic recovery. That is our observation as of today. So perhaps a little bit of wait and see on that one. But where you are directly being impacted it is from the sanctions on Russia due to its war in Ukraine. And and we know that you you own three LNG vessels that you had actually planned to charter to the Arctic LNG 2 project in Russia. Can you give us an update on, on what you're doing with those vessels? Yeah, the first of all that the existing energy projects like Sakharin or Yamar is still not the target of sanction. So therefore that we are continuing our service to provide that energy transportation from Russia to the both European and Asian markets. But as you correctly mentioned that the the new project architect Two is at the target of the sanction and the So that the the we we recognise that that we cannot provide a service to architect two and that now nowadays that we are studying that the how to transfer our business to to somebody either who can continue that the the the business which architect. But it seems to me that very complicated that the political the process and the that we we are carefully that the analyzing that the that the detail of detail of the sanction regime of course that the other one of the the shipping company in Japan that we will follow we should follow that the sanction regime decided by US and the G7 countries. So who would you be looking to sell to and and also what sort of timeline are you looking at as well. So the the situation is not so simple because that it is, it is it is very, very difficult to sell our asset to to for example the Russian, Russian companies that it is also that that create the the potential that sanction, sanction target. Therefore that that we have to be very very careful that the how how to protect the our our own interests to the and without to without vibrating that violating that a sanction regime. How much extra money is Matsui making as a result of the sanctions. So that it's it's it's very very difficult to say but if you look at the the positive side and negative side of the sanction regime that would perhaps that the in total that that that we that we can gain the quite a lot additional income from that. The other the sanction regime because that the IT created that a completely new completely new that the transportation requirements for the global market. The the for example that there are so many, so many goods before sanction that the so many the volume of cargoes are coming from Russia to Asian market but not nowadays that instead the the, the, the alternative route the very long way from the Northern Europe to the to to that to the Asia, the via through the the the the the, the the South South African route. So that created the the quite big volume of the additional transportation requirements. So that such kind of the things that that created to the additional additional business opportunities for us. But at the same time that the VE we we dramatically reduce that to the our volume of the direct trade with Russian market especially that the Russian Far East. Therefore, if you look, if you analyze that the pros and cons of the sanction regime, to me it's very, very difficult to say that but perhaps that not not quite the serious, the negative impact financially at least Takashi very briefly because we don't have much time but we know that that the Tokyo Stock Exchange is putting a lot of pressure on Japanese companies to improve their capital efficiency. How are you looking to improve your your price to book ratio. Yeah that's that's true. But the seating industry the the bit the exceptional one that that we are very, very the shipping market is a very volatile and quite cyclical industry. So therefore that that I, I I really want to re balance that our business portfolio and to achieve that the more stable return and the stable growth for the other company therefore that to do so that gradually gradually that diversify our business and to to to to materialize that quite quite stable growth for coming 5 to 10 years time and it will create that the additional value for our shareholders I I strongly believe.