Risks of Transport Constraints and Cost Increases Due to Driver Shortages
First written in FY2018-Q2. 6 of 13 entries say "Restated". Latest entry: FY2025-H1.
The whole theme swung hardest in 2017: 8 of 15 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2025-H1MitigatedAnnual report
「The logistics business reported steady revenue and operating profit, as general freight and food transportation remained solid and the Company advanced initiatives to adjust freight rates appropriately and improve operating efficiency through digitalisation.」
In response to higher logistics costs, including labor and fuel costs, the company pursued appropriate adjustment of contract fees and operational efficiency through digitalization, and explains that sales and profit in the business remained firm. - FY2023RestatedAnnual report
「In addition, labor shortages in delivery and meter-reading operations are beginning to emerge, particularly in rural areas.」
Labor shortages in logistics and energy delivery remain an ongoing issue, and the company continues to address them through efficiency improvements using LPWA, expansion of logistics facilities, ICT and AI. - FY2023-Q1MitigatedAnnual report
「The logistics business remained solid. Against a backdrop of an expanded in-house logistics network and growing logistics demand from online shopping, freight volumes handled on trunk routes linking Hokkaido and eastern Japan increased. This, together with higher volumes of infectious waste handled in the collection and transport of industrial and medical waste, offset the impact of rising diesel prices.」
The cost burden from higher diesel prices continues, but the company explained that the impact was offset by expansion of its logistics network and increased volumes of trunk transportation and infectious-waste handling. - FY2021AdvancedAnnual report
「Focusing on the cold-chain logistics field, where market growth is expected to continue, the company is expanding its network of in-house logistics bases, introducing ICT and AI in warehouses to reduce and streamline labor-intensive work, and developing a system capable of meeting diverse needs, including smaller shipment lots.」
Measures to address driver shortages and rising labour costs have taken concrete form through appropriate freight-rate adjustments, delivery management systems, expansion of temperature-controlled logistics facilities, and labour-saving initiatives using ICT and AI in warehouses. - FY2021-Q2RestatedAnnual report
「The food logistics-focused 3PL business performed steadily as handling volumes for supermarkets increased amid requests to refrain from going out, utilization rates at temperature-controlled logistics centers improved, and the impact of higher labor costs was offset by appropriately revising contract rates.」
While logistics costs remain under pressure from rising personnel expenses, the company is offsetting the impact by appropriately revising contract fees. - FY2020RestatedAnnual report
「The food logistics-focused 3PL business performed steadily. Higher volumes handled at the newly established temperature-controlled logistics center and the start of contracted delivery services for convenience stores in new areas contributed, while the impact of labor-shortage-related cost increases was offset through appropriate adjustments to contract charges and higher productivity in warehouse operations.」
Although logistics costs continue to rise because of labor shortages, the Company is reaffirming measures to offset the impact by bringing contract fees to appropriate levels and improving productivity in warehouse operations. - FY2020-Q3RestatedAnnual report
「Across the business as a whole, the company was affected by cost increases stemming from labor shortages, but minimized the impact by improving delivery efficiency through the introduction of a new delivery management system and adjusting contract delivery fees appropriately.」
Although logistics costs caused by labor shortages continue to rise, the Company is containing the impact through delivery management systems, more efficient deliveries, and appropriate adjustments to contract charges. - FY2020-Q2MitigatedAnnual report
「The 3PL business, centred on food logistics, performed steadily, supported by new contracts in the northern Tohoku region and progress in adjusting freight rates appropriately, an initiative pursued since the previous fiscal year.」
While personnel expenses, diesel prices and other costs continue to rise, progress in adjusting 3PL rates has helped contain the impact of the cost burden. - FY2019-Q3MitigatedAnnual report
「Although rising personnel expenses and diesel costs created a challenging operating environment, the impact was minimized as negotiations with consignors, mainly in the 3PL business, continued and the normalization of contract rates progressed steadily.」
Although labor costs and light oil prices continue to rise, we are limiting the impact of higher logistics costs through negotiations with shippers and progress in bringing contracted transportation fees into line with appropriate levels. - FY2019-Q2RestatedAnnual report
「Although rising personnel expenses and diesel costs created a challenging operating environment, the impact was minimized by working to normalize contract rates, mainly in the 3PL business.」
The Logistics business continues to bear higher costs from increases in labour costs and diesel prices. The impact is being contained through appropriate adjustments to contract rates. - FY2018WorsenedAnnual report
「As difficult business conditions continued, with the impact of higher costs due to increased delivery expenses resulting from driver shortages, higher personnel expenses and rising diesel prices, the company worked to appropriately adjust freight rates charged to customers.」
Higher costs resulting from the driver shortage and increases in diesel prices and labour costs continued throughout the fiscal year, and ordinary profit in logistics-related businesses was 83.5% of the level in the same period of the previous year. - FY2018-Q3RestatedAnnual report
「Meanwhile, the transportation business, which comprises general freight transport and chassis (trailer) transport using ferries between Hokkaido and Honshu, faced difficult conditions. Although it worked to acquire new shippers and optimize the balance of chassis departures and arrivals, it was affected by higher diesel prices and labor costs.」
In the transportation business, the company pursued the acquisition of new shippers and optimization of the number of chassis arrivals and departures, while the impact of higher diesel prices and labor costs has continued. - FY2018-Q2First statedAnnual report
「The Transportation business, comprising general freight transportation and chassis (trailer) transportation using ferries between Hokkaido and Honshu, was affected by higher costs associated with the driver shortage, rising diesel prices and vehicle replacement investments, despite increased freight volumes in general freight transportation.」
The shortage of drivers in the logistics business was identified separately for the first time as an operating constraint and cost-increase factor in the transportation business, alongside higher diesel prices and vehicle replacement investments.