Nippon Yusen to negotiate cargo rates amid Red Sea route disruption

Japan's largest shipping company Nippon Yusen, also known as NYK Line, has suspended routes that pass through the Red Sea. The company has expressed its willingness to negotiate with cargo owners on additional fuel costs incurred by alternative routes.

Volatility has heightened due to Yemen's Houthi rebels attacking vessels in the Red Sea and the responses by US Forces and their allies.

Three major Japanese shipping firms, including NYK Line, are using other routes, including those going around the Cape of Good Hope in South Africa.

At a news conference to announce financial results on Monday, NYK Line Executive Officer Yamamoto Takashi said the company is temporarily shouldering the burden of extra fuel and other costs.

He added that the firm will have to negotiate prices with clients in the near future.

He also revealed that there has been a shortage of ships to transport vehicles, especially between Europe and Asia.

Yamamoto said that along with the disruption to traffic in the Red Sea, vehicle shipments will also be impacted by rising costs and delays in transportation.