Higher Transport Costs and Difficulty Passing Them Through Due to Shortages of Frontline Transport Labor
First written in FY2017. 12 of 15 entries say "Worsened", first in FY2018-Q2. Latest entry: FY2027-H1.
Hyoki Kaiun moved to the "Worse" side of this theme in 2017, 4 years before the typical company in this theme (2021).
The whole theme swung hardest in 2025: 6 of 6 companies on the "Worse" side.
4 other companies' latest entry also says "Restated".
- FY2027-H1RestatedAnnual report
「For companies, addressing labor shortages, rising labor costs and higher energy costs continues to be an important management issue.」
Labor shortages and rising labor costs, together with higher energy costs, continue to be identified as important management issues. - FY2026WorsenedAnnual report
「As in the previous year, securing seafarers and improving working conditions remain priority measures. In addition to securing seafarers through affiliated companies, the Company will continue strengthening its direct employment of seafarers, which it has carried out independently since fiscal 2025.」
The continuing shortage of seafarers is identified as an issue requiring stronger direct employment. Labor shortages caused by aging and retirements among warehouse workers, as well as challenges in transferring skills, have also become apparent. - 2026-04-30AdvancedResults
「In addition, the newly invested ISO tank container terminal on Rokko Island still faces the challenge of improving profitability by strengthening cargo-collection sales.」
Although investment was made in the ISO tank container terminal on Rokko Island, improving profitability through cargo-collection sales was identified as an issue. - FY2025WorsenedAnnual report
「In the domestic shipping business, challenges include deteriorating profitability due to higher vessel operating costs, as well as the closure of owner-operators due to shortages of seafarers and the aging of the seafarer workforce.」
In addition to seafarer shortages and aging, the closure of owner-operators was explicitly identified as an issue, expanding the scope of the impact from transportation labor shortages. - FY2024WorsenedAnnual report
「In addition to the medium- to long-term decline in the number of coastal seafarers, the number of small shipowners choosing voluntary closure is expected to increase as a result of factors including the aging of seafarers.」
In addition to the existing shortage of drivers, the decline in the number of coastal seafarers, the aging of seafarers and the expected voluntary closure of small shipowners are expanding the risk of transportation labor shortages. - FY2024-Q2WorsenedAnnual report
「In the domestic shipping business, the cost burden continues to increase due to persistently high vessel fuel oil prices and higher labor costs for seafarers.」
In addition to the previous risk of higher costs due to a shortage of transportation labor, higher seafarer labor costs were explicitly identified, and the burden of labor costs in coastal shipping continues. - FY2023WorsenedAnnual report
「In the port transport business, the impending 2024 issue concerning outsourcing to ocean container and truck transport operators, which are essential business partners, namely the stagnation of logistics due to a shortage of drivers, has become an urgent industry-wide issue in port areas requiring countermeasures.」
The previous risk of higher costs caused by driver shortages materialized as the logistics disruptions resulting from the 2024 problem, an urgent issue facing the industry as a whole. - FY2021-Q3WorsenedAnnual report
「In the port transportation business, handling volumes for both exports and imports remained sluggish due to restrictions on economic activity worldwide resulting from the spread of COVID-19. However, revenue increased 4.1% year on year to ¥3,528 million, driven by orders from new stable customers, increased imports of fertilizers and other products relatively unaffected by the pandemic, and increased imports of food from Europe, where freight rates were high, amid stronger demand for eating at home. Operating profit declined 74.3% year on year to ¥16 million, owing to higher administrative expenses and the increased burden of transportation costs.」
Revenue increased on higher imports from new stable customers and of fertilizers and European food products, while operating profit in the port transportation business fell 74.3% year on year due to the increased burden of transportation costs and other factors. The impact of rising transportation costs is deepening. - FY2020-Q3WorsenedAnnual report
「Although the company worked to reduce administrative expenses, the increased burden of transportation costs also weighed on earnings, resulting in a 9.8% year-on-year decline in operating profit to ¥63 million.」
Although administrative expenses were reduced, the increased burden of transportation costs remained, and operating profit in the port transportation business fell 9.8% year on year. - FY2019-Q3WorsenedAnnual report
「Meanwhile, transportation costs continued to rise against a backdrop of chronic labor shortages and persistently high fuel prices, while administrative expenses also increased. Although revenue rose 7.8% year on year to ¥3,555 million, the higher cost burden was substantial, and operating profit fell 23.4% to ¥70 million, resulting in lower profit.」
The burden of higher transportation costs caused by chronic labor shortages continued, and the port transportation business posted a 23.4% year-on-year decline in operating profit despite higher revenue. - FY2019-Q2WorsenedAnnual report
「Meanwhile, conditions have become more difficult as transport costs rise due to persistently high fuel prices and labor shortages, and the Company has been actively pursuing negotiations to revise freight rates.」
The company states that the burden of higher transportation costs due to labor shortages is becoming more severe and is pursuing negotiations to revise freight rates as a response to passing costs through to prices. - FY2019-Q1WorsenedAnnual report
「In the port transport business, handling volumes of export cargo, particularly machinery, increased as overseas economies gradually recovered, resulting in revenue of ¥1,169 million, up 9.3% year on year. However, operating profit fell to ¥25 million, down 22.9%, due to higher truck transport costs caused by a shortage of drivers and increased administrative expenses.」
A shortage of drivers became an actual cost pressure through higher truck transportation costs, and the port transportation business posted a 22.9% year-on-year decline in operating profit despite higher revenue. - FY2018WorsenedAnnual report
「The Company is also exposed to severe operating conditions, including the difficulty of passing on increases in truck freight rates caused by labor shortages and the loss of market share against competitors amid major regulatory deregulation, such as the liberalization of customs offices handling customs declarations.」
The labor shortage has materialized as higher truck freight rates and difficulties passing costs through to prices, and the risk of rising transportation costs continues to intensify. - FY2018-Q2WorsenedAnnual report
「As companies increasingly felt the effects of labor shortages and employment continued to grow, personal consumption remained firm.」
The company states that it recognizes worsening labor shortages among businesses, indicating that the external environment surrounding the labor-shortage risk is deteriorating. - FY2017First statedAnnual report
「The chronic shortage of transport labor and the shift in fuel oil prices from a bottoming phase into a recovery phase are expected to push up transport costs and make negotiations to pass these increases on through pricing more difficult.」
The company identifies a chronic shortage of workers engaged in actual transportation as a new business-environment risk and expects higher transportation costs and difficult negotiations to pass them through to prices.