Declining domestic freight volumes, labor shortages, and intensifying competition
First written in FY2016. 18 of 39 entries say "Worsened", first in FY2017-Q3. Latest entry: FY2027-H1.
Japan Logistic Systems Corp. moved to the "Worse" side of this theme in 2018, 2 years before the typical company in this theme (2020).
The whole theme swung hardest in 2020: 6 of 9 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「The logistics industry in which our group operates remained challenging, as domestic cargo volumes generally stagnated amid the effects of rising prices, while profitability remained under pressure from persistently high labor and fuel costs. In addition, following the enforcement of amended logistics-related legislation, which entered the full-scale operational phase in 2026, structural reforms aimed at optimizing the entire supply chain and ensuring fair business practices accelerated.」
In addition to sluggish domestic cargo volumes and persistently high labor and fuel costs, the full-scale implementation of amended logistics-related legislation and the acceleration of structural reforms were identified. - 2026-08-10WorsenedResults
「2026年より本格運用される改正物流関連法の施行を受け、荷主企業にもサプライチェーン全体の最適化や効率化に向けた対応が強く求められるなど、業界は大きな転換期を迎えております。」
改正物流関連法の本格運用により、荷主企業を含むサプライチェーン全体への対応要求が強まった。 - FY2026WorsenedAnnual report
「Amid more active efforts to respond to regulatory requirements following amendments to logistics-related legislation and industry consolidation, efforts to address the severe labor shortage and improve structural issues accelerated.」
Responses to regulations arising from amendments to logistics-related legislation, more active industry consolidation, and the severe labor shortage were identified together, indicating that issues requiring action on the industry structure are continuing and becoming more concrete. - FY2026-H1WorsenedAnnual report
「The logistics industry in which our group operates faced a challenging environment, as domestic cargo volumes generally remained sluggish while various costs, including labor costs, increased. In addition, efforts to address labor shortages and improve structural issues are accelerating, alongside stronger regulatory measures arising from legal amendments and more active industry consolidation.」
In addition to rising costs such as labor costs and sluggish domestic cargo volumes, stronger regulation arising from legal amendments and more active industry consolidation were identified. - FY2025MaterialisedAnnual report
「The logistics industry faced a challenging environment, as cargo volumes generally remained sluggish amid stagnant personal consumption caused by rising prices, while pressure from rising costs such as labor and fuel increased. In addition, efforts to improve logistics efficiency through legal amendments and industry consolidation accelerated further in response to the 2024 problem.」
Sluggish cargo volumes due to stagnant personal consumption, pressure from rising costs, and the acceleration of legal amendments and industry consolidation against the backdrop of the 2024 problem were identified as the actual industry environment. - FY2025-H1WorsenedAnnual report
「The logistics industry in which our group operates faced a challenging environment, as cargo volumes generally remained sluggish amid stagnant personal consumption, while pressure from rising costs such as labor and fuel increased. In addition, industry consolidation has accelerated against the backdrop of labor shortages and the 2024 problem.」
In addition to sluggish cargo volumes and increased pressure from rising labor and fuel costs, the acceleration of industry consolidation against the backdrop of labor shortages and the 2024 problem was identified. - FY2024-Q3RestatedAnnual report
「The logistics industry in which our group operates faced a challenging environment, as cargo volumes generally remained sluggish and costs increased due to higher labor costs and persistently high fuel prices. In addition, addressing labor shortages and the 2024 problem has become an urgent issue.」
In addition to sluggish cargo volumes and higher costs due to rising labor costs and persistently high fuel prices, addressing labor shortages and the 2024 problem continues to be an urgent issue. - FY2024-Q2WorsenedAnnual report
「The logistics industry faced a challenging environment, as cargo volumes generally remained sluggish and costs increased due to higher labor costs and surging fuel prices. In addition, addressing labor shortages and the 2024 problem has become an urgent issue.」
Sluggish cargo volumes and higher costs due to rising labor costs and surging fuel prices were identified, along with addressing labor shortages and the 2024 problem as urgent issues. - FY2024-Q1WorsenedAnnual report
「The logistics industry in which our group operates faced a challenging environment, as cargo volumes remained sluggish because the recovery in demand lacked strength, while earnings were squeezed by persistently high fuel prices and rising costs such as electricity charges. In addition, addressing labor shortages and the 2024 problem has become an urgent issue.」
Weak demand recovery, persistently high fuel prices and rising costs such as electricity charges were identified, along with addressing labor shortages and the 2024 problem as urgent issues. - FY2023WorsenedAnnual report
「The logistics industry in which our group operates faced a challenging environment, with cargo volumes remaining flat, loading efficiency declining as shipments became more diverse and moved in smaller lots, various costs including fuel prices increasing, and companies needing to address a chronic labor shortage. In addition, as the 2024 problem approaches, efforts across society to achieve sustainable logistics are accelerating to avoid disruptions to logistics.」
In addition to the existing issues of stagnant cargo volumes, labor shortages and rising costs, the risk of lower loading efficiency due to more diverse shipments and smaller lots, and the risk of logistics disruptions arising from the 2024 problem were identified. - FY2023-Q3Sluggish cargo volumes related to production and construction, alongside rising costsAnnual report
「The logistics industry in which our group operates faced a challenging environment, as cargo volumes related to production and construction remained sluggish and earnings were squeezed by increases in various costs, including fuel prices.」
Sluggish cargo volumes related to production and construction, and pressure on earnings from increases in various costs, including fuel prices, were identified as features of the industry environment. - FY2023-Q2WorsenedAnnual report
「The logistics industry in which our group operates faced a challenging environment, as earnings were squeezed by increases in various costs, including persistently high fuel prices, while production-related logistics stagnated due to the global semiconductor shortage and other factors, despite resilient cargo volumes for consumer goods.」
While cargo volumes for consumer goods remained resilient, the stagnation of production-related logistics due to the global semiconductor shortage and increases in various costs were newly identified, indicating a worsening industry environment. - FY2023-Q1Resilient cargo volumes alongside rising costsAnnual report
「The logistics industry in which our group operates faced a challenging environment, as earnings were squeezed by increases in various costs, including persistently high fuel prices, despite generally steady cargo volumes.」
Cargo volumes were generally steady, while increases in various costs, including persistently high fuel prices, squeezed earnings. - FY2022WorsenedAnnual report
「In addition to population decline and the declining birthrate and aging population, the logistics industry is promoting greater efficiency as the 2024 problem, under which limits on drivers' overtime hours will apply in fiscal 2024 as part of work-style reforms, approaches.」
In addition to population decline and the declining birthrate and aging population, the 2024 problem, namely the application of limits on drivers' overtime hours in fiscal 2024, was identified as a specific industry challenge, highlighting the need for greater logistics efficiency. - FY2022-Q3RestatedAnnual report
「The logistics industry in which our group operates faced a challenging environment, as transportation costs increased due to fuel prices remaining high, despite continued strength in parcel deliveries and an overall recovery trend in business-to-business logistics.」
While parcel deliveries remained strong and business-to-business logistics showed a recovery trend, transportation costs continued to rise as fuel prices remained high, confirming the challenging industry environment. - FY2022-Q2Recovery in intercompany logistics alongside higher fuel and labor costsAnnual report
「The logistics industry in which our group operates faced a challenging environment, as costs increased due to surging fuel prices and higher labor costs, despite resilient demand for parcel deliveries and an overall recovery trend in business-to-business logistics.」
Demand for parcel deliveries remained resilient and business-to-business logistics showed a recovery trend, while cost increases due to higher fuel and labor costs continued. - FY2022-Q1Freight volume improvement alongside higher fuel and labor costsAnnual report
「Although firm transport demand, particularly for parcel freight, led to signs of improving freight volumes, the recovery remained gradual and the logistics industry faced a severe operating environment, with higher fuel prices and labor costs putting pressure on earnings.」
While freight volumes showed signs of improvement, particularly for parcel freight, the recovery was gradual and higher fuel and labor costs were putting pressure on earnings. - FY2021-Q3RestatedAnnual report
「Although freight volumes at some companies became more active as stay-at-home demand increased, intercompany logistics struggled to grow due to stagnant production activity and declining personal consumption, leaving handled volumes generally weak and the operating environment severe.」
While some companies performed well due to stay-at-home demand, intercompany logistics continued to struggle and handled volumes remained weak due to stagnant production activity and sluggish personal consumption. - FY2021-Q2RestatedAnnual report
「Although freight volumes at some companies were relatively strong due to “stay-at-home demand” and other factors, the logistics industry faced a severe operating environment, with handled volumes generally weak due to stagnant production activity and declining personal consumption.」
While some companies performed well due to stay-at-home demand, handled volumes across the industry were described as weak due to stagnant production activity and declining personal consumption, and the severe environment continued. - FY2021-Q1WorsenedAnnual report
「Although the impact varied by customers’ industries and business types, the operating environment was severe, with freight volumes becoming sluggish overall as production and sales activities contracted.」
In addition to the previous labor shortages and rising costs, the note specifically identifies contractions in production and sales activities and sluggish freight volumes due to COVID-19. - FY2020WorsenedAnnual report
「The logistics industry in which our group operates faced a severe environment, with domestic freight volumes weak amid changes in social conditions, while labor-related costs rose due in part to increasingly severe labor shortages.」
The description of domestic freight was strengthened from “struggling to grow” to “weak volumes,” while increases in labor-related costs due to labor shortages continued. - FY2020-Q3RestatedAnnual report
「The logistics industry in which our group operates faced a severe environment, with domestic freight volumes struggling to grow and costs including labor costs continuing to rise amid increasingly severe labor shortages.」
Weak domestic freight volumes, increasingly severe labor shortages, and rising costs including labor costs continue to be described as factors contributing to the logistics industry’s severe environment. - FY2020-Q2WorsenedAnnual report
「The logistics industry in which our group operates faced a severe environment, with domestic freight volumes lacking momentum and costs including labor costs continuing to rise amid increasingly severe labor shortages.」
The description of domestic freight changed from previously being firm to lacking momentum, while increasingly severe labor shortages and continued increases in costs including labor costs are also specifically noted. - FY2020-Q1RestatedAnnual report
「The logistics industry in which our group operates faced a severe environment, with increasingly severe labor shortages and rising costs including labor costs.」
Increasingly severe labor shortages and rising costs including labor costs continue to be described as factors contributing to the logistics industry’s severe environment. - FY2019WorsenedAnnual report
「Although domestic freight volumes, particularly consumer-related freight, remained firm, the logistics industry faced a severe operating environment, with costs including labor and external outsourcing expenses rising amid increasingly severe labor shortages and changes in working conditions.」
While domestic freight remains firm, the note specifically identifies rising labor and external outsourcing costs resulting from increasingly severe labor shortages and changes in working conditions. - FY2019-Q3RestatedAnnual report
「Although domestic freight volumes remained firm, the logistics industry faced a severe operating environment, with costs, particularly labor-related costs, rising due to labor shortages and changes in working conditions.」
While domestic freight remains firm, rising labor-related costs associated with labor shortages and changes in working conditions continue to be identified as an industry risk. - FY2019-Q2WorsenedAnnual report
「The logistics industry in which our group operates faced a severe environment, with labor-related costs rising amid shortages of drivers and other personnel and changes in working conditions, while fuel prices remained high and natural disasters damaged transport infrastructure.」
In addition to the longstanding labor shortages and increases in labor-related costs, the note specifically identifies continued high fuel prices and damage to transport infrastructure from natural disasters. - FY2019-Q1WorsenedAnnual report
「Although domestic freight volumes remained firm, the logistics industry faced a severe operating environment, with labor-related costs rising amid shortages of drivers and other personnel and changes in working conditions, while fuel prices also continued to rise.」
While domestic freight remains firm, the note specifically identifies continued increases in fuel prices in addition to labor-related costs associated with labor shortages and changes in working conditions. - FY2018WorsenedAnnual report
「The logistics industry in which our group operates faces a severe environment that is expected to remain so, with numerous issues requiring attention, including responding to increasingly diverse and sophisticated logistics needs resulting from the expansion of the e-commerce market and addressing structural problems such as driver shortages and long working hours.」
In addition to the previous driver shortages and increasingly sophisticated logistics needs, the note specifically identifies long working hours as a structural issue and states that numerous issues require attention. - FY2018-Q3RestatedAnnual report
「Although domestic freight volumes remained firm, the logistics industry faced a severe operating environment, with costs including labor and external outsourcing expenses rising as operators addressed increasingly diverse and sophisticated logistics needs and labor shortages.」
While domestic freight remains firm, rising labor and external outsourcing costs associated with labor shortages and increasingly sophisticated logistics needs continue to be identified as industry risks. - FY2018-Q2RestatedAnnual report
「Although domestic freight volumes remained firm, the logistics industry faced a severe operating environment, with costs including labor and external outsourcing expenses rising as operators addressed increasingly diverse and sophisticated logistics needs and labor shortages.」
While domestic freight remains firm, rising labor and external outsourcing costs associated with labor shortages and increasingly sophisticated logistics needs continue to be identified as industry risks. - FY2018-Q1Domestic freight remains firm while costs continue to riseAnnual report
「Although domestic freight volumes remained firm, the logistics industry faced a severe operating environment, with labor and external outsourcing costs rising as operators addressed increasingly diverse and sophisticated logistics needs and labor shortages.」
The description changed from the previous sense of stagnation to domestic freight being firm, while labor and external outsourcing costs continued to rise against a backdrop of labor shortages. - FY2017RestatedAnnual report
「The operating environment was severe, with labor and external outsourcing costs rising as the industry addressed driver shortages and increasingly diverse and sophisticated logistics needs.」
Driver shortages, increasingly sophisticated logistics needs, and rising labor and external outsourcing costs are described as factors contributing to the logistics industry’s severe environment. - FY2017-Q3WorsenedAnnual report
「The logistics industry in which our group operates continues to face a severe operating environment, with domestic freight volumes showing signs of stagnation and labor and outsourcing costs rising against a backdrop of labor shortages.」
The increase in outsourcing costs is also specifically noted, broadening the scope of cost increases. - FY2017-Q2RestatedAnnual report
「The logistics industry in which our group operates continues to face a severe operating environment, with domestic freight volumes showing signs of stagnation and labor costs rising against a backdrop of labor shortages.」
The note continues to describe stagnant domestic freight volumes and rising labor costs due to labor shortages as factors contributing to the logistics industry’s severe environment. - FY2017-Q1RestatedAnnual report
「The logistics industry continues to face a severe operating environment, with domestic freight volumes showing signs of stagnation and labor costs rising due to higher fuel prices and labor shortages.」
Stagnant domestic freight volumes, rising fuel prices, and higher labor costs due to labor shortages continue to be industry challenges. - FY2016First statedAnnual report
「Against a backdrop of declining domestic freight volumes due to population decline and stagnant personal consumption, rising labor and outsourcing costs due to labor shortages, and increasingly diverse and sophisticated logistics needs, corporate restructuring through M&A and business alliances is advancing, and competition among operators is expected to intensify further.」
The industry faces declining domestic demand, labor shortages, increasingly sophisticated logistics needs, corporate restructuring, and intensifying competition.