To everyone in the “K” LINE Group, I would like to wish you and your families a Happy New Year. I hope that you were able to spend an enjoyable year-end and New Year period, and that you are ready to start 2026 feeling refreshed.
Looking back on 2025, the business environment surrounding our Group was marked by geopolitical risks that became apparent throughout the year. These included the rivalry between the US and China, heightened tensions in the Middle East, and the prolonged Russia-Ukraine situation. In addition to these, concerns over a global economic slowdown and uncertainty surrounding energy and environmental policies in various countries further compounded the situation, leaving the future business environment facing a high degree of uncertainty.
In particular, the impact of tariff policies (primarily in the United States), the introduction of punitive port fees by the US Trade Representative (USTR) targeting ships (though temporarily suspended), and the responses of China and other countries to these measures became major factors disrupting global trade and maritime transport demand. For our Group, which focuses on the shipping industry, this past year also forced us to deal with such disruptions.
In terms of environmental regulations, the IMO MEPC meeting held last October postponed the adoption of medium-term measures to reduce greenhouse gas (GHG) emissions from international shipping, delaying the establishment of unified international rules. Some countries and regions have also seen setbacks in certain decarbonization initiatives, necessitating careful attention to future national energy mix policies. Despite these circumstances, the global trend toward GHG reduction from a medium to long-term perspective remains unshaken, and “K” LINE is committed to steadily implementing its various measures to reduce environmental impact.
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