Impact of the 2024 Logistics Problem on Transport Capacity and Logistics Costs
First written in FY2023. 4 of 7 entries say "Restated". Latest entry: FY2026.
Nichia Steel Works moved to the "Worse" side of this theme in 2026, 2 years after the typical company in this theme (2024).
The whole theme swung hardest in 2024: 10 of 30 companies on the "Worse" side.
1 other company's latest entry also says "Reframed".
- FY2026ReframedAnnual report
「Demand in the construction and civil engineering fields may remain sluggish due to labor shortages following the application of overtime-work limits (960 hours per year) to logistics- and construction-related work under the April 2024 amendments to the Labor Standards Act.」
The scope has expanded from risks related to logistics costs and transportation capacity to the risk of continued weakness in construction and civil engineering demand through labor shortages in the logistics and construction industries. - FY2026-H1RestatedAnnual report
「Meanwhile, on the cost side, labor costs increased, along with transportation, secondary raw material and energy costs.」
Regarding existing logistics cost risks related to the 2024 logistics issue, higher logistics costs continued to be reflected in the results explanation for the interim period. However, the text does not explicitly state a direct causal relationship between the increase and the 2024 issue. - FY2025RestatedAnnual report
「Meanwhile, on the cost side, in addition to higher labor costs to secure personnel and improve employee engagement, the company expects further increases in transportation costs attributable to the 2024 problem and energy costs following the end of government cost-relief measures.」
The expected increase in logistics costs attributable to the 2024 logistics issue continues to be stated, and higher logistics costs also appeared as a cost factor for the current fiscal year. - FY2025-H1MaterialisedAnnual report
「Meanwhile, on the cost side, transportation and energy costs, as well as labor costs, increased in addition to primary and secondary raw material prices.」
Higher logistics costs appeared in the explanation of results for the current interim period. However, the text does not explicitly state a causal relationship with the 2024 logistics issue or the amount of the impact. - FY2024RestatedAnnual report
「Following the April 2024 amendments to the Labor Standards Act, the “2024 issue,” arising from the application of an annual 960-hour cap on overtime work for motor vehicle drivers, may affect the transportation capacity and logistics costs of the Company’s group.」
The possibility of an impact on transportation capacity and logistics costs resulting from the annual 960-hour cap, and the policy of taking timely and appropriate measures, continue to be stated. - FY2024-Q3RestatedAnnual report
「Meanwhile, prices for primary and secondary raw materials and energy, which had risen substantially through FY2022, remain elevated. Conditions on the cost side have become even more challenging, including measures to address the 2024 logistics problem.」
The 2024 logistics issue was explicitly included as an existing risk related to transportation capacity and logistics costs, including in the explanation of costs. No specific impact amount or actual occurrence was stated. - FY2023First statedAnnual report
「Following the April 2024 amendments to the Labor Standards Act, the “2024 issue,” arising from the application of an annual 960-hour cap on overtime work for motor vehicle drivers, may affect the transportation capacity and logistics costs of the Company’s group. The Company will assess the impact of the “2024 issue” and take timely and appropriate measures.」
The possibility of reduced transportation capacity and higher logistics costs associated with the application of the annual 960-hour cap on overtime work for motor vehicle drivers was explicitly identified as a new business risk.