Japanese shipping company Nippon Yusen is engaging in early-stage talks with domestic refiners to facilitate the import of crude oil from Latin America and Africa as Japan seeks to diversify its energy sources away from the Middle East. The discussions come amid ongoing disruptions caused by the conflict in the region, which previously accounted for over 90% of Japan’s oil imports.
In an interview, Nippon Yusen CEO Takaya Soga emphasized that refiners are exploring whether countries such as Brazil, Mexico, and various African nations can reliably supply crude to Japan. This strategic shift follows supply uncertainties resulting from the U.S.-Iran war and challenged navigation through the Strait of Hormuz, a critical global oil artery that saw near-standstill traffic during the early stages of the conflict. Though flows have since rebounded, with about 6 million to 8 million barrels per day now passing through according to trading estimates, Japanese energy stakeholders continue to prioritize reducing dependency on Middle Eastern sources.
To date, Nippon Yusen has been transporting increased volumes of U.S. crude oil to Japan and is witnessing growing demand along these routes. The company’s clients are also evaluating alternative delivery paths for Saudi Arabian crude, including transit through the Mediterranean Sea. While these routes involve longer travel times and higher costs, Soga noted that the shipping line has been able to transfer these expenses to customers and that negotiations have remained reasonable.
Beyond the immediate diversification efforts, Nippon Yusen is assessing broader maritime security risks linked to strategic chokepoints such as the Panama and Suez Canals and the Taiwan Strait. The company plans to incorporate geopolitical risk considerations into its next long-term business strategy, reflecting a growing awareness of the vulnerabilities in global shipping lanes.
Regarding liquefied natural gas (LNG), the situation remains largely stable, as Japan’s dependence on Middle Eastern LNG supplies is comparatively low. This has allowed LNG deliveries to continue without significant disruption despite the regional tensions affecting crude oil transport.
Japan’s efforts to broaden its energy sourcing underscore an increasingly cautious approach to geopolitical risks, seeking to enhance supply security amid an evolving and uncertain international landscape.