Japanese shipping giant, Nippon Yusen KK, is confident U.S. tariffs won’t hurt its business as much as initially expected, with bookings already recovering and set to stay strong over the next three months.

The biggest shipper by market capitalization — which operates container and cruise lines, specialized carriers, and air freight — saw a robust recovery in container shipping orders following an easing in tensions between the U.S. and some of its trading partners in May, said Chief Executive Officer Takaya Soga. That’s after booking volumes had slumped by a third as President Donald Trump announced sweeping tariffs in April. 

“Even if things continue as they are now, there will probably not be another decline in bookings from tariffs this year,” he told Bloomberg News on May 28.

Specifically with regard to shipping autos, which have faced a 25% U.S. tariff since April 3, Soga said bookings “have not dropped at all.” 

Separately, rival Mitsui OSK Lines Ltd. also said an expected decline in shipping volume had not materialized as of April and May. “In a sense, it is a happy miscalculation,” Chief Executive Officer Takeshi Hashimoto told Bloomberg News.

A good order book would help Nippon Yusen focus on quickly expanding its shipping business through mergers and acquisitions, Soga said.

Nippon Yusen became the world’s largest operator of liquefied petroleum gas carriers last month after it acquired the non-crude oil tanker shipping business from ENEOS Ocean, a subsidiary of ENEOS Holdings Inc., for 76 billion yen ($526 million). The company took over 47 vessels, including LPG carriers and chemical tankers. 

Soga said acquiring part of ENEOS Ocean “was a very good deal, and I’m currently looking into other similar opportunities.” He declined to name any potential targets.

When asked about the planned port-entry fee from the U.S. targeting Chinese vessels, Soga said he sees the policy having limited impact on Nippon Yusen as only 8% of its fleet is China-built. He added his company has no plans to exclude Chinese shipyards from future shipbuilding orders. Earlier this week, Mitsui OSK said it is hard to buy Chinese vessels for the time being as the U.S. ramps up scrutiny.