TOKYO, July 16 (Reuters) - Japanese shipper Kawasaki

Kisen (K-Line) is adjusting its U.S. services and is

prepared to reroute more ships away to other regions as it

braces for potentially higher U.S. tariffs, CEO Takenori

Igarashi said on Wednesday.

"There have been times when ships couldn't be fully loaded

on some routes, and when we reduced the frequency of container

services from East Asia to the U.S.," Igarashi, who took his

post in March, told Reuters in an interview.

"We're adjusting our fleet capacity according to cargo

volumes."

One of Japan's major shipping companies, Kawasaki Kisen has

factored in a 30 billion yen ($200 million) impact from U.S.

tariffs for the financial year through March 2026, citing a hit

to the car carrier business and lower container volumes and

freight rates.

Igarashi said that the container ship business would be

especially affected by the outcome of U.S.-China tariff

negotiations, which the company was closely watching.

U.S. President Donald Trump has threatened higher tariffs on

a range of trading partners unless they agree trade deals before

an August 1 deadline.

Depending on the tariff rates that various countries

ultimately face and what they do to trade flows, there could be

some positive impact if shipping distances lengthen, Igarashi

said.

To adjust to tariff-related demand at the operational level,

Kawasaki Kisen could redirect vessels from U.S. routes to

Europe, the Middle East, Australia and Africa, he said.

"When it comes to strategic adjustments, we may, for

example, reduce assets in the form of vessels a bit, but unless

we are clear about the direction of trade policies, we can't

suddenly make drastic cuts," he said. "We're still in the

wait-and-see phase."

($1 = 149.8000 yen)