Deteriorating Logistics Environment Due to Sluggish Freight Volumes, Driver Shortages and Intensifying Competition

「In the logistics industry, including our Group, labor shortages, particularly driver shortages, have become a problem in recent years. In addition, the challenges relating to human capital have become more serious due to work-style reforms in the logistics industry, including tighter regulations on drivers’ working hours, as part of what is known as the “Logistics 2024 Problem.”」

「In the logistics industry, the operating environment remained challenging as domestic freight volumes were expected to decline, while costs continued to rise, including persistently high fuel costs and labor costs associated with addressing the “Logistics 2024 Problem.”」

「Although domestic freight transport volumes were expected to recover, expenses increased due to persistently high energy prices, labor shortages, and other factors, and the environment surrounding corporate management remained challenging.」

「In the logistics industry, including the Group, labor shortages centered on driver shortages have become an issue in recent years. From the current consolidated fiscal year, the work-style reforms in the logistics sector, including stricter regulations on drivers' working hours, and the so-called "2024 problem" have made issues concerning human capital more serious.」

「In the logistics industry, although the e-commerce market remains strong, companies have not yet recovered handling volumes because of stagnation in semiconductors and components sourced overseas, and it cannot be said that overall cargo movement has recovered. In addition to the response to the 2024 problem and rising fuel and electricity prices, these factors have made the operating environment surrounding the Group extremely challenging.」

「In the logistics industry, although the e-commerce market remains strong, companies have not yet recovered handling volumes because of stagnation in semiconductors and components sourced overseas, and it cannot be said that overall cargo movement has recovered. In addition to the response to the 2024 problem and rising fuel and electricity prices, these factors have made the operating environment surrounding the Group extremely challenging.」

「As a result, shipments have become smaller, dispersing trucks and lowering load factors; longer waiting times at logistics facilities have extended drivers'拘束時間; and the Group must address driver shortages and the 2024 problem, defined as the issue expected to arise in the logistics industry under the work-style reform legislation. Together with rising fuel and electricity prices, these factors have made the operating environment surrounding the Group extremely challenging.」

「As a result, shipments have become smaller, dispersing trucks and lowering load factors; longer waiting times at logistics facilities have extended drivers'拘束時間; and the Group must address driver shortages and the 2024 problem, defined as the issue expected to arise in the logistics industry under the work-style reform legislation. Together with rising fuel and electricity prices, these factors have made the operating environment surrounding the Group extremely challenging.」

「In the logistics industry, overall transport demand is expected to remain stagnant because of production volume stagnation in the manufacturing sector due to semiconductor shortages and other factors, as well as weak personal consumption. Meanwhile, the e-commerce market continues to expand as lifestyles have become more established, with broader product sales and services, and parcel volumes continue to increase. As shipments become smaller, trucks are dispersed and load factors decline; longer waiting times at logistics facilities extend drivers'拘束時間; driver shortages are becoming chronic; and companies must respond to the 2024 problem. Together with persistently high fuel prices, these factors are expected to keep the logistics industry in a challenging operating environment.」

「In the logistics industry, the operating environment has deteriorated due to soaring fuel prices associated with the situation between Russia and Ukraine, while production in the manufacturing sector and overall consumption have continued to decline. As a result, domestic freight transport demand continues to slow. Meanwhile, the e-commerce market remains on an expansionary trend due to lifestyle changes, and parcel volumes continue to increase. Combined with smaller shipments and lower truck load factors, longer waiting times between logistics facilities and the resulting issue of drivers'拘束時間, and driver shortages that are becoming chronic, the industry is expected to face a challenging period ahead of the 2024 problem.」

「In the logistics industry, as the global impact of COVID-19 continues, including production disruptions in the manufacturing sector caused by semiconductor shortages and other factors, there is a possibility that repeated issuance and application by the government of a state of emergency and priority preventive measures in response to rising infections and developments in the medical system and government response could lead to reduced personal consumption due to restrictions on people's movements and, consequently, stagnant overall transport demand, resulting in conditions even more challenging than those experienced to date.」

「In the logistics industry, as the impact of COVID-19 continues both in Japan and overseas, overall domestic transport demand remains stagnant because of production disruptions in the manufacturing sector caused by semiconductor shortages and other factors, as well as declining personal consumption due to repeated states of emergency and restrictions on people's movements. Meanwhile, companies continue to promote telework, and the e-commerce market continues to expand on the back of stay-at-home demand, supporting logistics services. However, shipments are becoming smaller, lowering truck load factors, and longer waiting times are making drivers'拘束時間 increasingly prolonged and chronic. Together with driver shortages and other factors, this means that the challenging operating environment for the logistics industry continues.」

「In the logistics industry, amid the ongoing global spread of COVID-19, overall domestic transport demand has remained stagnant because of production disruptions in the manufacturing sector caused by semiconductor shortages and other factors, and weak personal consumption resulting from restrictions on people's movements. Meanwhile, the e-commerce market remains firm on the back of stay-at-home demand, and parcel volumes are progressing steadily. However, the industry continues to face challenging conditions because shipments have become smaller, lowering truck load factors, waiting times have lengthened, raising concerns over drivers'拘束時間, and driver shortages are becoming chronic.」

「Domestic freight transport demand has slowed as production and consumption have declined. Meanwhile, the e-commerce market continues to expand on the back of stay-at-home demand, and the number of parcels handled continues to increase. As a result, the industry remains in a challenging environment because shipments have become smaller, lowering truck load factors, waiting times between logistics facilities have lengthened, and driver shortages are becoming chronic.」

「In these circumstances, another state of emergency was declared. Combined with chronic shortages of drivers, skilled staff, and other personnel and rising labor costs associated with work-style reforms, this is expected to prolong the challenging operating environment.」

「In the logistics industry, even during the state of emergency, logistics was classified as an essential industry for maintaining social life. After the state of emergency was lifted, the Company continued to provide logistics services while implementing measures to prevent the spread of COVID-19, fulfilling its role as infrastructure supporting social life. However, the chronic shortages of drivers, skilled staff, and other personnel, together with rising labor costs associated with work-style reforms, are expected to prolong the challenging operating environment.」

「In the logistics industry, shortages of drivers, skilled staff, and other personnel have become chronic, making the operating environment increasingly challenging. In addition to rising labor costs associated with work-style reforms, the deterioration in economic conditions resulting from the impact of COVID-19 is expected to prolong the challenging operating environment.」

「In the logistics industry, shortages of drivers, skilled staff, and other personnel have become chronic, and the challenging operating environment is expected to continue, partly because of rising labor costs associated with work-style reforms. Intensifying competition between companies, lower freight rates and prices due to customers' cost-cutting efforts, and worsening employment conditions are also expected to prolong the challenging operating environment.」

「In the logistics industry, shortages of drivers, skilled staff, and other personnel have become chronic, making the operating environment increasingly challenging. In addition, concerns over higher crude oil prices and rising labor costs mean that the industry remains in a challenging environment.」

「In the logistics industry, shortages of drivers, skilled staff, and other personnel have become chronic, making the operating environment increasingly challenging. In addition, concerns over higher crude oil prices and rising labor costs mean that the industry remains in a challenging environment.」

「In the logistics industry, shortages of drivers and workers have become chronic, making the operating environment increasingly challenging. In addition, concerns over higher crude oil prices and rising labor costs mean that the industry remains in a challenging environment.」

「In the logistics industry, shortages of drivers and workers have become chronic, making the operating environment increasingly challenging. In addition, concerns over higher crude oil prices and rising labor costs mean that the industry remains in a challenging environment.」

「In the logistics industry, shortages of drivers and workers have become chronic, making the operating environment increasingly challenging. In addition, concerns over higher crude oil prices and rising labor costs mean that the industry remains in a challenging environment.」

「In the logistics industry, shortages of drivers, workers, and other personnel have become chronic, and the challenging operating environment is expected to continue. Concerns over persistently high fuel costs due to rising crude oil prices, lower freight rates and prices resulting from intensifying competition between companies and customers' cost-cutting efforts, and worsening employment conditions are also expected to prolong the challenging operating environment.」

「In the logistics industry, shortages of drivers, workers, and other personnel have become chronic, making the operating environment increasingly challenging. In addition, concerns over higher crude oil prices resulting from OPEC production cuts and other factors, together with rising labor costs, mean that the industry remains in a challenging environment.」

「In the logistics industry, shortages of drivers, workers, and other personnel have become chronic, making the operating environment increasingly challenging. In addition, concerns over higher crude oil prices resulting from OPEC production cuts and other factors, together with rising labor costs, mean that the industry remains in a challenging environment.」

「In the logistics industry, shortages of drivers, workers, and other personnel have become widely recognized as a social issue, making the operating environment increasingly challenging. In addition, concerns over higher crude oil prices resulting from OPEC production cuts and other factors, together with rising labor costs, mean that the industry remains in a challenging environment.」

「In the logistics industry, transport volumes are expected to decline due to weaker corporate earnings and production declines associated with inventory adjustments. In addition, concerns over higher crude oil prices resulting from OPEC production cuts and yen depreciation, as well as higher costs due to chronic driver shortages and other factors, mean that the industry remains in a challenging environment.」

「In the logistics industry, transport volumes are expected to decline due to weaker corporate earnings and production declines associated with inventory adjustments. Although low and stable crude oil prices have provided support, the industry remains in a challenging environment because of higher costs resulting from driver shortages and other factors.」

「In the logistics industry, total transport volumes have declined amid prolonged weakness in personal consumption. Although low and stable crude oil prices have provided support, the industry remains in a challenging environment due in part to higher costs resulting from driver shortages and other factors.」

「Although the operating environment is expected to remain challenging, partly because of higher costs such as outsourcing expenses resulting from driver shortages, domestic freight volumes are also expected to remain sluggish. Concerns remain over persistently high fuel costs following a renewed rise in crude oil prices, lower freight rates and prices due to intensifying competition between companies and customers' cost-cutting efforts, and worsening employment conditions, and the operating environment is expected to remain challenging.」