Trading Houses Stand Out in Maintaining Supply Chains Amid Middle East Crisis

2026-08-09

Trading houses keep supply chains connected amid Middle East crisis

Mitsubishi Corporation President Katsuya Nakanishi says, 'Trading houses live by Japan's national interests.' This spring's Middle East crisis once again brought that role into sharp relief. The effective closure of the Strait of Hormuz disrupted Japan's energy supply chain and also stalled the distribution of Middle Eastern naphtha.

Mitsubishi Corporation Chemical released inventories from storage tanks at 10 locations in Japan, while Mitsubishi Corporation's head office also moved ahead with imports from South Korea and elsewhere. Liquefied natural gas (LNG) was supplemented with Canadian output that the company develops. Customer companies made repeated requests such as, 'We need it immediately, even just one drum,' prompting the subsidiary and head office to respond in coordination.

Priority on maintaining supply chains

Japan's energy self-sufficiency rate remains at about 15%. For a resource-poor country, tensions in the Middle East became its first crisis in some time. Major general trading houses, which are eyeing record profits for the fiscal year ending March 2027, also prioritized maintaining supply chains over near-term earnings.

Marubeni President Masayuki Omoto notified employees internally that 'maintaining supply chains is the priority.' Marubeni handles about 40% of Japan's naphtha imports, but because the United States was tied up by Western resource majors, the company moved to secure alternative procurement. In mid-April, based on information from local expatriate staff, it developed new trading partners in Peru, India and elsewhere.

Although some naphtha deliveries were delayed, they did not lead to a shortage of feedstock. Takayuki Tanaka, a professor at Senshu University who is knowledgeable about trading houses, says, 'Trading houses are thoroughly familiar with global supply chains and can demonstrate their strength by reconfiguring them.'

The trading house model linking national interest and profit

The roots of trading houses can be traced back to Kameyama Shachu, later Kaientai, formed in Nagasaki in 1865 by Ryoma Sakamoto and others. The foundations of Mitsubishi Corporation and Mitsui & Co. were zaibatsu that moved in step with the country's industrial promotion. Trading houses have not only pursued profits, but also played a role in shaping a vision for the nation's future.

Even after the postwar dissolution of the zaibatsu, they continued to function behind the scenes in support of Japan's processing trade. Although they have accumulated business investments and are no longer mere trading companies, their character as 'infrastructure companies' that keep supply chains connected in emergencies remains unchanged. As the world becomes more divided, countries are moving to secure resources, while food, water and digital resources such as artificial intelligence (AI) are also becoming targets of competition.

Japan has a high dependence on imports, with imported goods recently accounting for 20% of gross domestic product (GDP). The five major trading houses, Mitsubishi Corporation, Itochu Corporation, Mitsui & Co., Sumitomo Corporation and Marubeni, have together earned more than 3 trillion yen in net profit annually over the past five years. Their high level of profitability is not unrelated to intensifying competition over resources and supply chains.

In Europe, there are voices saying, 'Learn from Japan's SHOSHA.' German manufacturers such as BMW are said to have proposed that the German government study a trading house-style model that works with domestic government agencies to explore rare earth interests around the world in response to China's export restrictions. U.S.-based OpenAI is also said to have shifted toward a development stance that takes security into account under the Trump U.S. administration, forcing companies to become conscious of balancing their businesses with national interests.

At the same time, businesses linked to national policy also involve losses. General trading houses have recorded large losses many times in the past, but they have continued to manage their businesses by overcoming those setbacks and accumulating profits. In recent years, they have also established themselves near the top of rankings of popular employers among university students, with their raison d'etre of 'earning profits and supporting Japan' attracting younger generations. The trading house model also offers implications for companies in Japan and abroad.

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