Rise in transportation procurement prices driven by fuel prices and demand for vessel capacity
First written in FY2018. 9 of 23 entries say "Restated". Latest entry: FY2027-H1.
The whole theme swung hardest in 2025: 5 of 10 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「Persistently high fuel prices resulting from the situation in the Middle East are affecting not only ocean freight but also domestic delivery, driving up logistics costs.」
Persistently high fuel prices resulting from the situation in the Middle East are affecting domestic delivery as well as ocean freight, contributing to higher transportation procurement costs. - FY2026-H1RestatedAnnual report
「As ocean freight rates rose from around last summer, the current interim consolidated accounting period began with rates higher than in the same period of the previous year, although the gap versus the same period a year earlier narrowed toward the end of the period.」
The interim period began with ocean freight rates higher than in the same period of the previous year, and the gap narrowed toward the end of the period. Upward pressure on transportation procurement costs remains. - FY2025WorsenedAnnual report
「In ocean transportation, freight rates are trending higher as tight supply and demand caused by the situation in the Red Sea, congestion at major ports worldwide and rising demand for ocean transportation have created shortages of container capacity.」
Ocean freight rates, which had been declining through the previous fiscal year, turned upward against a backdrop of the situation in the Red Sea, port congestion and insufficient vessel capacity. - FY2025-H1WorsenedAnnual report
「In addition, in ocean transportation, container capacity has become insufficient due to tight supply and demand caused by the situation in the Red Sea, congestion at major ports worldwide and rising demand for ocean transportation, and ocean freight rates are also trending higher.」
In addition to the shortage of container capacity, the situation in the Red Sea, congestion at major ports and rising transportation demand have contributed to renewed increases in ocean freight rates. - FY2024MitigatedAnnual report
「To avoid the impact of unstable price fluctuations, our group has entered into agreements with some actual carriers concerning transportation freight rates and is working to fix rates for specified periods. If transportation procurement costs fluctuate due to rapid changes in market conditions or other factors, we generally pass higher procurement costs through to selling prices, and lower selling prices or make adjustments when procurement costs decline, taking into account trends among competitors and other factors.」
In response to the risk of fluctuations in transportation procurement costs, the company identifies as specific measures the fixing of freight rates for specified periods under agreements with some carriers and the passing through or adjustment of selling prices in line with changes in procurement costs. - FY2024-Q3RestatedAnnual report
「As for the environment surrounding the Group, ocean freight rates, which had surged during the pandemic, declined year on year as supply and demand normalized. The decline continued on the China route, where the Group handles its largest volume of cargo.」
Transportation procurement costs, which had surged against a backdrop of the container shortage and other factors, have continued to decline across routes, including the major China routes. - FY2024-Q2MitigatedAnnual report
「Ocean freight rates, which surged during the COVID-19 pandemic, have declined since last autumn as supply and demand have normalized. Rates continued to decline not only on European, North American and Southeast Asian routes, but also on China routes, which handle the largest volume of cargo.」
Transportation procurement costs, which had surged and remained high against a backdrop of the container shortage and other factors, began to decline across routes, including the major China routes. - FY2024-Q1MitigatedAnnual report
「As for the environment surrounding the Group, ocean freight rates continued to decline from around autumn last year, not only on European, North American and Southeast Asian routes but also on the China route, which handles the largest volume of cargo.」
The situation has shifted from surging and elevated ocean freight rates driven by the container shortage and tight vessel capacity to continued freight rate declines across routes, including major China routes. - FY2023Transportation procurement costs have diverged by route.Annual report
「In the ocean transportation business that is the mainstay of our group, freight rates on North American and Southeast Asian routes declined during the consolidated fiscal year, and rates on some China routes, which handle large volumes, have also been trending lower since around autumn 2022. However, they still remain above pre-pandemic levels.」
While freight rates have declined on some routes, including North America and Southeast Asia, rates, including those on China routes, remain above pre-pandemic levels, with trends differing by route. - FY2023-Q3Transportation procurement costs have diverged by route.Annual report
「Although freight rates on some routes, including North America and Southeast Asia, have been trending lower in the ocean transportation business that is the mainstay of our group, rates on the China routes, which account for a large volume of business, remain high.」
While freight rates have been trending lower on some routes, high rates have continued on China routes, with the impact of transportation procurement costs diverging by route. - FY2023-Q2RestatedAnnual report
「In addition, ocean freight rates remain high, and together with the further rapid depreciation of the yen, they are causing logistics costs for many shippers to rise further.」
Elevated ocean freight rates have persisted, resulting in higher logistics costs for shippers. - FY2023-Q1RestatedAnnual report
「In an environment in which ocean freight rates remained high and the rapid depreciation of the yen also continued, logistics costs for many shippers rose further.」
Logistics costs have continued to rise as ocean freight rates remain high. However, the company also states that elevated freight rates provided a tailwind for earnings growth in the current quarter. - FY2022WorsenedAnnual report
「At the same time, as with operating revenue, operating costs rose substantially due to surging ocean freight rates resulting from the global container shortage and tight vessel capacity. In addition, procurement costs associated with domestic and overseas cargo transportation continued to rise as crude oil prices increased, causing the cost ratio to rise by 1.8%. As a result, operating costs for the consolidated fiscal year amounted to ¥50,253 million, up 33.7% year on year.」
In addition to surging freight rates caused by the container shortage and tight vessel capacity, procurement costs increased due to higher crude oil prices. Operating costs rose 33.7%, and the cost ratio increased by 1.8%. - FY2022-Q3WorsenedAnnual report
「The business environment surrounding the Group remains challenging, owing to sluggish personal consumption, a shortage of ocean containers, and an additional shortage of vessel loading capacity.」
In addition to the existing container shortage and surging freight rates, shortages of vessel capacity have also emerged, broadening the constraints on transportation capacity. - FY2022-Q2RestatedAnnual report
「Since last autumn, ocean freight rates on some routes handled by our group have surged due to shortages of ocean containers and other factors, and rates remain high.」
The global shortage of ocean containers and the surge and continued elevation of ocean freight rates on some routes have persisted. - FY2022-Q1RestatedAnnual report
「The container shortage has yet to be resolved, and high ocean freight rates on some routes have persisted.」
The global container shortage and elevated ocean freight rates have persisted. - FY2021WorsenedAnnual report
「Freight rates for ocean freight are currently surging due to a global shortage of shipping containers, and logistics costs are also trending higher.」
The global container shortage and surging freight rates have emerged as tangible business conditions affecting the risk of higher transportation procurement costs due to fuel prices and shortages of vessel and vehicle capacity. - FY2020-Q3RestatedAnnual report
「With procurement costs for domestic and international transportation continuing to trend upward, the company worked to pass the increases through to selling prices and otherwise secure stable profits.」
The company continues to face the risk of rising procurement costs for domestic and international transportation and to take measures such as passing the increases through to selling prices to limit the impact. - FY2020-Q2RestatedAnnual report
「In addition, although procurement costs for domestic and international transportation were trending upward, we worked to pass on costs to selling prices and took other measures to secure stable profit.」
As transportation procurement costs continue to rise, the company continues to take measures such as passing the increases through to selling prices to limit the impact and secure stable profits. - FY2019MaterialisedAnnual report
「Operating costs amounted to ¥22,066 million, up 11.7% year on year, due not only to higher operating revenue but also to increased outsourcing of customs-clearance operations in Japan and higher transportation costs for trucks and other vehicles.」
Increased outsourcing of customs-clearance operations and higher transportation costs for trucks and other vehicles materialized as, and were quantified in, the actual increase in operating costs. - FY2018First statedAnnual report
「Accordingly, if freight rates charged by actual transport operators rise due to higher fuel prices, shortages of vessel capacity or vehicles, the Group's procurement costs will also increase.」
The company explicitly identifies for the first time the risk that higher freight rates charged by actual transport operators due to higher fuel prices or shortages of vessel capacity and vehicles could push up procurement costs.