Soaring Food and Energy Prices and Sanctions Risk Stemming from Russia’s Invasion of Ukraine
First written in FY2022. 3 of 7 entries say "Worsened", first in FY2023-Q2. Latest entry: FY2026.
Meiji Shipping Group moved to the "Worse" side of this theme in 2024, 1 year after the typical company in this theme (2023).
0 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「During the consolidated fiscal year, the global economy generally maintained a trend of moderate recovery, as major countries moved toward monetary easing against a backdrop of slowing inflation. Meanwhile, uncertainty about the outlook remained high due to geopolitical risks and uncertainty surrounding international affairs.」
The discussion expanded from specific factors such as the situations in Ukraine and the Middle East to the broader view that geopolitical risks and uncertainty surrounding international affairs were increasing uncertainty in the global economy and shipping markets. - FY2026-H1ReframedAnnual report
「For product tankers, exports from India and the Middle East increased as the circumvention of sanctions on Russian products continued. Although a temporary seasonal correction was also observed, transport demand, particularly within Asia, increased and the market remained relatively firm.」
The impact of the situation in Russia and sanctions was described as changes in market conditions by vessel type, through the diversion of petroleum product shipments and increased exports from India and the Middle East. The discussion expanded from the previous focus on the downward pressure on the global economy from soaring food and energy prices and sanctions to the specific impact on shipping routes and demand. - FY2025WorsenedAnnual report
「Avoidance of the Suez Canal and Red Sea routes in particular had an impact. Conditions were generally firm in the first half of 2024, but shifted to a downward trend in the second half, particularly due to a decline in transport demand to China. After the start of 2025, conditions surged in a reversal under the impact of stronger U.S. sanctions on Russia, and signs of recovery emerged. An unstable situation with wide fluctuations continues.」
In addition to the situations in Ukraine and the Middle East, the US intensification of sanctions against Russia was identified as a source of volatility in shipping markets. Tanker markets have become increasingly unstable, surging sharply after declines, for example. - FY2024WorsenedAnnual report
「In the ocean shipping business, we believe that changes in the geopolitical environment, including Russia's invasion of Ukraine and the situation in the Middle East, and in the global economic environment, including foreign exchange rates and interest rates, will have a significant impact on overall shipping market conditions. We will closely monitor future developments,」
The situation in the Middle East, in addition to the situation in Ukraine, was explicitly identified as a geopolitical risk affecting overall shipping market conditions. - FY2023RestatedAnnual report
「We believe that Russia's invasion of Ukraine will continue to have a significant impact on market conditions across all vessel types. We will closely monitor future developments and proceed with the maintenance and enhancement of our fleet to respond appropriately to these changing circumstances.」
The view that Russia's invasion of Ukraine would affect market conditions for each vessel type, and the policy of monitoring developments and responding through fleet maintenance, remained unchanged. - FY2023-Q2WorsenedAnnual report
「During the six months ended the second quarter of the current fiscal year, the global economy was recovering from the COVID-19 crisis, but gradually showed signs of weakening due to Russia's invasion of Ukraine, pressure on households from prolonged and broad-based inflation, and the slowdown in the Chinese economy.」
The impact of Russia's invasion of Ukraine was described as continuing and expanding beyond higher food and energy prices to include prolonged and broader inflationary pressure, pressure on household finances, and a slowdown in the Chinese economy. - FY2022First statedAnnual report
「The slowdown in growth is becoming a reality due to rising food and energy prices associated with Russia's invasion of Ukraine, sanctions imposed on Russia by Western countries, and other factors.」
In addition to the previous COVID-19 pandemic and U.S.-China trade friction, Russia's invasion of Ukraine, soaring food and energy prices, and sanctions against Russia were identified for the first time as new downside factors for the global economy.