Japan's Yamato plans to open labor-saving facility next year

Japan's Yamato plans to open labor-saving facility next year

© Reuters. Yamato Transport Co. President and Chief Executive Officer Yutaka Nagao speaks during an interview with Reuters in Tokyo© Reuters. Yamato Transport Co. President and Chief Executive Officer Yutaka Nagao speaks during an interview with Reuters in Tokyo

TOKYO (Reuters) – Japan’s largest package delivery company, Yamato Transport Co, is considering plans to open a new distribution facility with labor-saving technology near Tokyo early next year, its chief executive said on Friday.

“I expect the labor shortage to continue,” Yutaka Nagao said in an interview. “We need to consider labor-saving measures.”

The company, a core unit of Yamato Holdings Co (T:) that is known for its black cat logo, has become a symbol of Japan Inc’s struggle with labor shortages.

It has experienced a surge in parcel volume because of the country’s growing use of e-commerce retailers such as Amazon.com Inc (O:).

“It’s especially difficult to find workers in big cities,” Nagao added. “The labor shortage got more severe in December.”

To pass on ballooning labor costs, the company this year started negotiation with its 1,100 biggest corporate shippers to reduce their volume discounts. Nagao said the company had also been talking with smaller corporate clients over a price hike.

“Our service prices have not yet reached fair levels,” he said.

Disclaimer:Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

(Why?)

Source

Reply