Risk of Surging Ocean Freight Costs
First written in FY2021. 1 of 2 entries say "Mitigated", first in FY2022. Latest entry: FY2022.
The whole theme swung hardest in 2022: 11 of 24 companies on the "Worse" side.
9 other companies' latest entry also says "Mitigated".
- FY2022MitigatedAnnual report
「For some transactions with overseas customers, the contract transfers responsibility for costs at the time of shipment, with freight costs borne by the customer. As a result, the Group has been largely unaffected by the worldwide surge in transportation costs.」
For some transactions with overseas customers, responsibility for freight costs transfers to the customer at the time of shipment, so the Company explains that it has been largely unaffected by higher freight costs. - FY2021First statedAnnual report
「The proportion of overseas projects in the Group's revenue varies by fiscal year but is high at 60% to 80%, and ocean freight is used to transport products overseas and procure components from overseas. While the number of ocean freight services worldwide has declined during the COVID-19 pandemic, demand has increased as economic activity has recovered. As a result, ocean freight costs could rise sharply and affect the Group's performance.」
With 60% to 80% of projects overseas and reliance on ocean freight, the Company newly disclosed the possibility that higher freight costs caused by reduced shipping capacity and increased demand could affect performance.