Takenori Igarashi, CEO of Japanese shipping company Kawasaki Kisen (K-Line), said on July 16 that the company is adjusting its US routes and preparing to redeploy more ships to other regions in response to possible US tariff increases, according to Reuters.
Takenori Igarashi, who took office in March this year, revealed: “Some routes have already experienced insufficient ship loading rates, so we have reduced container shipping routes from East Asia to the United States. We are adjusting the fleet capacity according to cargo volume.”
K-Line, one of Japan’s major shipping companies, expects to suffer a loss of 30 billion yen (about $200 million) in fiscal 2025 (ending March 2026) due to the US tariff policy, mainly due to the impact on the automobile transportation business and the decline in container shipping volume and freight rates. Takenori Igarashi stressed that the container ship business will be particularly affected by the outcome of the US-China tariff negotiations, and the company is closely following the progress of the negotiations.
US President Donald Trump has threatened to impose higher tariffs on trading partners if they fail to reach a trade agreement by the August 1 deadline. Takenori Igarashi analyzes that, depending on the final tariff rates imposed on each country and the impact of these rates on trade flows, there may be some positive effects if shipping distances are extended.
He added, “In response to changes in operational demand related to tariff policies, K-Line may move ships from the US route to Europe, the Middle East, Australia and Africa. As for strategic adjustments, for example, we may appropriately reduce ship assets, but unless the direction of trade policy is clear, we will not suddenly reduce capacity significantly. We are still in a wait-and-see stage.”