Structural Reform of the Logistics Business

「The logistics business remained firm, supported by progress in appropriately revising contract fees for major food-logistics customers and new contracts for rice logistics, among other factors.」

「The logistics business aims to expand by increasing cargo volumes in food logistics, general freight and fresh produce through collaboration, while expanding its temperature-controlled logistics network, including the opening of the Chiba Temperature-Controlled Center in February 2025.」

「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 this business, the company also strengthened its own logistics network, including by beginning operations at new logistics centers in Mie and Iwate prefectures.」

「The 3PL business, centered on food logistics, began full-scale operations at the Sapporo No. 2 Low-Temperature Center, while the volume of goods handled in e-commerce-related logistics increased at the Atsugi Logistics Center.」

「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.」

「In addition, since August 2021, the company has newly consolidated Repro Work Holdings Co., Ltd., which operates an industrial waste transportation and treatment business in Hokkaido.」

「In this segment, the company is focusing on the temperature-controlled logistics business, where demand is expected to expand, while building its own logistics network to improve profitability. At the same time, it is working to create synergies among businesses by rationalizing costs through the centralization of logistics across the Group and improving efficiency through the effective use of warehouses. The company is also developing waste-related transportation, whose importance is increasing as society moves toward a circular economy.」

「In the transport business, order-taking activities leveraging the locations of logistics centres developed in northern Kanto and Hokkaido secured a major contract for an e-commerce operator, while trunk-line freight volumes also increased due to the recovery of chassis transport volumes on ferry routes. Higher productivity at the company's logistics bases and increased transport of medical waste also contributed, offsetting the impact of higher diesel prices, and the business progressed smoothly. The 3PL business, centred on food logistics, maintained high handling volumes for supermarkets, supported by stronger demand for prepared and home-cooked meals as people stayed home. Operations at the Sapporo Low-Temperature No. 2 Center, expanded in May this year, also contributed, and the business progressed smoothly.」

「Although freight volumes in the transportation business declined overall, particularly for building materials, the impact was offset by more efficient deliveries through the newly established centralized dispatch center and lower costs resulting from lower diesel prices. The business also benefited from the inclusion in consolidation of Katsura Tsusho Co., Ltd., acquired through M&A, which operates transportation and warehousing businesses mainly in western Japan.」

「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.」

「In addition, 株式会社桂通商, which operates transportation and warehousing businesses mainly in western Japan and was acquired through an M&A transaction during the cumulative first-quarter period, was newly consolidated.」

「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.」

「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.」

「The transportation business performed steadily as the volume of construction materials, agricultural feed, and other cargo handled increased mainly in Hokkaido, while the introduction of a new delivery management system improved delivery efficiency. The 3PL business, centered on food logistics, also performed well due to new contract business in northern Tohoku and progress in adjusting contract rates, an initiative underway since the previous fiscal year. The vehicle body business remained solid, supported by firm replacement demand and the contribution of capital investment made in the previous fiscal year to increase production capacity.」

「The transportation business remained firm as cargo volumes for construction materials, agricultural feed and other products increased, mainly in Hokkaido. The 3PL business, centered on food logistics, progressed steadily as new contracts were secured in the northern Tohoku region and the fee adjustment initiatives launched in the previous fiscal year advanced. The vehicle body business also remained firm following capital investment in the previous fiscal year to increase production capacity.」

「The transportation business performed well as cargo volumes increased following the acquisition of new shippers, while the balance of chassis transportation between Hokkaido and Honshu improved. The 3PL business, centered on food logistics, significantly outperformed the same period of the previous year after newly beginning to handle temperature-controlled deliveries for a major convenience-store chain. Although higher labor and diesel costs created a challenging operating environment, the company continued negotiations with shippers, mainly in the 3PL business, and minimized the impact by making steady progress in bringing contracted rates into line with costs. 東日本エア・ウォーター物流㈱ North Kanto Distribution Center Logistics Center 1,420 November 2019」

「By focusing on expanding new orders, the transport business increased freight volumes for steel frames, lumber and other products in chassis transport between Hokkaido and Honshu, in addition to general freight transport, and also expanded steadily in specialised logistics fields such as medical and environmental services. The 3PL business, centred on food logistics, also significantly exceeded the previous fiscal year's level as volumes handled in delivery operations for major convenience-store chains increased.」

「The transportation business focused on expanding new orders, resulting in increased cargo volumes, mainly construction materials, in chassis transportation between Hokkaido and Honshu. The 3PL business, centered on food logistics, also handled a larger volume of logistics operations for major convenience-store chains. Despite a challenging operating environment, including higher diesel prices and labor costs, the company worked mainly in the 3PL business to bring contracted rates into line with costs.」

「The food logistics-focused 3PL (third-party logistics) business significantly expanded both shipment volumes and service areas for major convenience-store chains, as delivery volumes increased and new bases were opened in connection with contracts in new areas. The transportation business, which handles general freight transportation, worked to strengthen regional operations and trunk transportation through active capital investment, including the opening of 2 new bases in the Honshu area.」

「The 3PL (third-party logistics) business, centred on food logistics, remained solid as freight volumes for major retail chains increased through expanded delivery contracts in new areas, in addition to efforts to improve the productivity of warehouse operations.」

「The 3PL business, centered on food logistics, progressed steadily as cargo volumes for major retail chains increased following the start of new contracts in new areas, and productivity in warehouse operations improved, offsetting the impact of higher costs, including labor costs. The vehicle body business, which designs and equips truck bodies and other products, also progressed steadily as productivity improved through continued expansion of plants and effective investment in machinery and equipment to meet strong demand.」

「Meanwhile, the 3PL business remained firm as cargo volumes handled for distribution chains increased and the company worked to improve productivity in warehouse operations.」

「Because building infrastructure and networks for logistics is essential to the Group's future growth strategy, the Group is proceeding with the in-house operation of logistics activities within the Group under the leadership of the newly established logistics company, while further expanding its logistics business.」

「The logistics business performed well, as food logistics benefited from increased cargo volumes and efforts to improve efficiency. In the vehicle body outfitting business, orders for trailer bodies increased following the expansion of production lines. Through the steady implementation of measures adapted to changes in the operating environment, the company is building a highly stable business structure.」

「In the logistics business, the company is building a resilient operating structure by simultaneously expanding operations, including winning new food logistics business in the Tohoku region, and improving the efficiency of delivery and warehouse operations across the business.」

「The logistics business performed well due to expanded transportation volumes from increased general logistics cargo and new contracts for food logistics and medical-environment logistics, as well as lower costs resulting from the decline in diesel prices.」

「We will promote further expansion of our overseas business and structural reform of our logistics business.」