Japan-Controlled Tankers Resume Direct Oil Pickups in Middle East

Japan-controlled oil tankers have begun picking up cargoes directly in the Middle East for the first time since conflict began in February. For over seven months, Japanese refiners and shipowners avoided the Persian Gulf to mitigate risk, relying instead on ship-to-ship transfers conducted off the coast of India or in Southeast Asia.

While these alternative logistics protected crews and cargoes, the strategy increased dependence on sellers and led to lost profits. The decision to return to the region is driven by soaring freight and logistics costs associated with the avoidance strategy.