Japan's logistics industry is grappling with mounting challenges from packaging material shortages, skyrocketing procurement costs and shipping disruptions, as Middle East tensions disrupt global supplies of naphtha and other foundational petrochemicals.
As a century-old comprehensive logistics company based in Tokyo's Minato Ward, Yasuda Logistics Corporation offers a full range of services including warehousing, sorting and packaging, as well as domestic and international transportation.
The company has reported a sharp increase in the price of stretch film, a critical material used for securing and protecting goods during transits.
The shortage stems directly from the company's reliance on imported raw materials, according to Kazuki Takizawa, head of the business department at Yasuda.
"Stretch film is made from naphtha imported from the Middle East. Right now, we're not only having trouble procuring it, but the price also remains stubbornly high. We used to use this type of stretch film with specifications of 500 millimeters wide and 1,000 meters long, but it's almost impossible to find now. So we've switched to an alternative that's 500 millimeters wide and 500 meters long each. This substitute costs about 1.5 times more per unit," he said.
The challenges facing Japan's logistics industry extend far beyond packaging materials, with tight energy supplies and unstable international shipping adding to the pressure on companies already operating on thin margins.
Yujiro Tsuchiya, manager of the business planning group at Yasuda, outlined the broader impact on the corporation's operation.
"Our corporation operates nearly 1,000 trucks, and all our companies need to buy various materials including gasoline, engine oil and diesel exhaust fluid. If the current situation persists, there is a possibility that we won't even be able to purchase basic materials. We not only engage in truck transportation, but also have sea and air freight businesses. In this regard, the risks associated with the Strait of Hormuz are already showing impacts," he noted.
The supply crunch has triggered widespread concerns across Japan's industrial landscape. According to Kyodo News, an official from the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) stated on Tuesday that since mid-March, the ministry has received approximately 9,500 inquiries from various industries regarding shortages of crude oil and naphtha derivatives.
Many businesses have reported that certain products are extremely difficult to obtain and that delivery dates remain indefinitely uncertain.
In response, the MLIT has announced plans to collaborate with the Ministry of Economy, Trade and Industry and other relevant departments to mitigate the impact of the supply disruptions.
Tightening supplies, soaring costs weigh on Japan's logistics sector amid Middle East tensions
