Profitability Pressure from Rising Logistics Costs

「原材料費及び物流コスト等の高騰や国際情勢によるエネルギー価格の高止まりに加え円安による輸入価格の高止まりなどによる、日用品や食料品等の物価高により、消費者の生活防衛意識が高まっており、厳しい業界環境が続いております。」

「However, the effects of energy prices and the de facto closure of the Strait of Hormuz, among other factors, are affecting a wide range of industries. In addition, in the seafood wholesale business, issues involving the protection of marine resources, the aging of fishing industry workers and higher labor costs are affecting prices. For imports, procurement costs remain elevated due to the impact of higher labor costs in addition to higher crude oil prices.」

「Across the food sector, successive price increases resulting from higher raw material, logistics and personnel costs have further heightened consumers’ focus on protecting their household finances, and difficult industry conditions continue.」

「In addition to higher energy and raw material prices, various prices, including logistics costs, remain elevated. As a result, price increases are expected to continue not only for processed products but for food products generally, and the business environment remains difficult.」

「Seafood wholesalers are struggling because they have been unable to pass on some costs, including logistics expenses, to sales prices.」

「As a result of soaring prices for various raw materials due to yen depreciation and higher labor costs to secure workers, fishing and aquaculture costs, logistics expenses and material costs have risen, and the trend toward higher fish prices is continuing.」

「In the seafood wholesale industry surrounding our company, demand from food-service businesses and inbound consumption had begun to recover. However, the industry has been significantly affected by higher procurement costs, including sluggish consumer sentiment amid rising prices for food and daily necessities due to the international situation described above, higher logistics costs, and declining seafood imports.」

「In the seafood wholesale industry surrounding our company, demand from food-service businesses and inbound consumption had begun to recover. However, the industry has been significantly affected by higher procurement costs, including sluggish consumer sentiment amid rising prices for food and daily necessities due to the international situation described above, higher logistics costs, and declining seafood imports, and the difficult industry environment has continued.」

「In the cold storage business, storage fee revenue increased due to sales efforts, including soliciting customers for stored goods, as well as the easing of the impact of COVID-19. However, cooling costs increased unexpectedly as energy prices rose due to the Russia-Ukraine situation and yen depreciation.」

「In the seafood wholesale industry surrounding our company, export-related business has been progressing steadily due to the weaker yen. However, the industry has been significantly affected by higher procurement costs resulting from the unstable international situation, including increased logistics costs, particularly due to surging resource prices, declining seafood imports, and higher material prices.」

「The company continues to be significantly affected by higher procurement costs resulting from the prolonged Russia-Ukraine situation, including soaring resource prices and higher logistics costs, declining seafood imports, and higher material prices.」

「The company has been significantly affected by higher procurement costs resulting from the Russia-Ukraine situation, including soaring resource prices and higher logistics costs, declining seafood imports, and higher material prices.」

「Japan’s economy during the current consolidated fiscal year faced an extremely challenging year, as social and economic activity was intermittently restricted through emergency declarations and priority preventive measures issued in response to the spread of COVID-19 since early 2020, compounded by the impact of the Russia-Ukraine situation since the beginning of the year and higher import prices due to the weaker yen.」

「In the seafood wholesale industry surrounding our company, the difficult industry environment has continued amid structural issues including declining catches due to fluctuations in the marine environment and weather conditions, shrinking within-market distribution, intensifying competition across industries and business formats, and higher logistics costs. Other factors include higher procurement costs resulting from expanding international seafood consumption, efforts to protect marine resources, and consumers' entrenched preference for saving money.」

「Higher logistics costs, together with relocation-related expenses, including the closure of the Tsukiji on-site cold storage facility and the transfer of goods held there to the Toyosu cold storage facility, increased expenses.」