Nippon Yusen Seeks Diversified Oil Supplies from Latin America and Africa

Nippon Yusen, Japan's largest shipping company, is in talks with refiners to import oil from Latin America and Africa. The discussions aim to diversify supplies and reduce dependence on the Middle East, according to a report by The Japan Times.

CEO Takaya Soga said the talks are at an early stage, with refiners assessing whether countries like Brazil, Mexico, and those in Africa can be reliable sources of crude oil for Japan. These regions could play an increasingly important role in supplies.

Before the conflict between the US and Iran, Japan received more than 90% of its oil from the Middle East. The disruption prompted the country to review its approaches to energy procurement, with Japan seeking alternative volumes primarily in the US and using strategic reserves to avoid shortages and sharp price increases.

Nippon Yusen already transports US crude oil to Japan and has seen growing demand for shipments on this route, Soga said. The company's clients are also exploring alternative routes for transporting Saudi oil, including via the Mediterranean Sea.