TAMAI STEAMSHIP CO., LTD.

Business Details

Centered on the transport of imported grain from North America and aluminum hydroxide from South America using controlled vessels, this segment also secures stable earnings through short-term chartering of a portion of controlled vessels. The fleet now includes a newly built vessel completed in June 2025. In the current period, the ratio of operations shifted from cargo transport to short-term chartering, resulting in lower freight revenue but higher charter hire income. This core business accounts for approximately 79% of consolidated operating revenue.

Recent Overview

Operating profit decreased 21.9% year on year due to increased vessel costs from the newly built vessel's completion and a shift in operational mix.

For FY2026 (ending March 2026), operating revenue for the Ocean-going Shipping Business was ¥4,047 million (down ¥233 million, or 5.5%, year on year), and operating profit was ¥996 million (down ¥279 million, or 21.9%, year on year). Freight revenue decreased and charter hire income increased due to a rise in the ratio of short-term chartering relative to cargo transport. Meanwhile, increased vessel costs associated with the newly built vessel completed in June 2025 weighed on profit. The increase in tangible fixed assets expanded significantly to ¥2,755 million from ¥531 million in the prior period, reflecting progress in fleet investment through the acquisition of the new vessel. In the January–March 2026 quarter, market conditions remained firm, supported by the tonne-mile effect from concentrated US-China soybean trade via the Cape of Good Hope route and increased exports of construction-related raw materials from China.

Key Products

Growth Drivers

• Expansion of fleet capacity and enhanced transport capability through the newly built vessel completed in June 2025
• Tonne-mile effect from concentrated transport of US-China soybean trade (approximately 12 million tons in scale) via the Cape of Good Hope route
• Increased tonne-miles from rising exports of cement, slag, and other construction-related raw materials from China and expanded exports to Africa
• Continuation and expansion of long-term and medium-to-long-term transport contracts with Nippon Light Metal, Zen-Noh, and others
• Efficient vessel allocation and improved profitability through geopolitical risk response (route selection, reduced ballast voyages)
• Potential contribution to increased tonne-miles and market uplift from US USTR port call fees on China-built vessels

Risks

• Risk from fluctuations in the ocean-going dry bulk market (large-scale deliveries of Kamsarmax and Ultramax vessels expected)
• Route changes and cost increases due to geopolitical risks (prolonged Russia-Ukraine war, tensions in the Middle East, extended closure of the Strait of Hormuz)
• Risk of reduced cargo volume from shrinking global trade due to Trump tariff policy and suspension of US soybean shipments to China
• Continued decline in demand for bulk cargo such as iron ore and coal due to the ongoing slowdown in the Chinese economy (real estate slump, deflationary pressure)
• Risk of profit pressure from increased vessel costs associated with completion of newly built vessels
• Increased costs to comply with IMO environmental regulations (EEXI, CII, GHG reduction targets) and risk associated with transition to next-generation fuels