The freight & logistics sector is an important part of the Japan economy and the industry stood at 25 trillion yen in 2017 (approximately 5% of the GDP) and it employs around 2.13 million people in the country. In the Japan Logistics performance Index score, in 2016, Japan stood at the 12th position with an LPI score of 3.97, which is better than countries, like China, Australia, and India. Japan is currently the world’s third-largest and one of the fastest growing e-commerce markets in the world. The country is scarce of resources, but it is surrounded by a tetrahedron the sea. Therefore, it relies heavily on imports of many raw materials and exports the processed products.
Currently there are 82.59 million e-commerce users in Japan, and 6.33 million additional users are expected to be shopping online by 2021. About 99.6% of Japan's exports and imports are by maritime transport and only 0.4% is by Air transport. The Port of Tokyo is one of the major ports in Japan and a strategic gateway to the world. It is connected through a network of regular container shipping routes and it acts as the core distribution hub for supporting various industries in Japan. It is instrumental in connecting Japan to the countries in North America and Europe. The Japan warehousing industry demand has been increasing with time. Rapid modernization of warehouse facilities and heavy consumer demand for e-commerce have been the top factors in contributing to occupier demand, and investor interest in the warehousing sector.
Automation in Japan Logistics Sector:
Japan is going through the worst labor shortage for the past four decades. Labor productivity in recent years has been decreasing, and as compared to the United States, it is as low as 60%, along with high labor costs and fierce competition in the Japanese logistics industry. There is a need for the automation of logistics activities in Japan, because of the low loading efficiency (about 44%). Due to the booming e-commerce sector and the rising demand for last mile delivery, businesses are turning to start-ups like Ground Inc. and Acca International Co. for warehouse automation services. Japan’s largest furniture maker, Nitori Holdings, recently deployed 79 robots in its Osaka distribution center. Due to a load on logistics infrastructure in Japan, use of Artificial Intelligence is gaining attention in the country. Daiwa house, in partnership with India's GreyOrange, has decided to use AI enabled robots for warehouse operations, which is expected to slash its manpower requirements by 80%. Intelligent transport systems (ITS) have also proved to be instrumental in improving the efficiency of logistics in the country. The most used ITS services are Oki Electric’s loco mobi, Hitachi KE systems’ GSP used transport system, Isuzu’s Mimamore-Kun, Yamato Transport’s See-T Navi, Toyota’s DSRC unit. ALSOK’s Guard One and Fujitsu’s DTS-B1 used operation support service. Several shipping firms and ship builders have joined hands in Japan to develop remote controlled cargo vessels and aim to launch it by 2025. The ships are going to use IoT, which may connect a number of devices to gather data like weather conditions and shipping information. The different issues in Japanese industry have acted like opportunities to various technology-based companies, so as to tap on it and redefine the entire logistics sector.
May 2016: Yamato Transport and Neopost formed a joint venture to launch an open parcel locker network in Japan.
January 2018: Yusen Logistics became a wholly-owned subsidiary of Nippon Yusen Kabushiki Kaisha and the company shares were delisted from the first section of the Tokyo Stock Exchange Inc.
Key industry Players: Some of the major players in the market include UPS, FedEx, JB Hunt, C.H. Robinson, Yamato Holdings, XPO Logistics, CJ Korea Express, Kerry Logistics, Kuehne + Nagel, DSV, and Yusen Logistics.
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1.1 Key Deliverables of the Study
1.2 Study Assumptions
1.3 Executive Summary
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. MARKET DYNAMICS
3.4 Porter’s Five Forces Analysis
3.5 Industry Value Chain and Cost Structure Analysis
4. JAPAN FREIGHT & LOGISTICS MARKET SEGMENTATION - BY FUNCTION FORECAST (2018-2023)
4.1 Freight Transport
4.1.3 Sea and Inland
4.2 Freight Forwarding
4.2.1 Sea Freight
4.2.2 Air Freight
4.4 Courier, Express, and Parcel
4.5 Value-added Services
4.6 Cold Chain Logistics, Last Mile Logistics, Return Logistics, and Other Emerging Areas
5. JAPAN FREIGHT & LOGISTICS MARKET SEGMENTATION - BY END-USER FORECAST (2018-2023)
5.2 Oil & Gas and Quarrying
5.3 Agriculture, Fishing, and Forestry
5.4 Manufacturing & Automotive
5.5 Distributive Trade
5.7 Others (Pharmaceutical and F&B)
6. COMPETITVE LANDSCAPE
6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Concentration Overview
6.3 Strategies Adopted by Major Players
7. KEY COMPANY PLAYERS
7.1 International Players (Top Global Players Active in the Japan Market)
7.2 Local Players (Top Listed and Unlisted Players in Freight Forwarding, Warehousing, 3PL, etc.)
7.3 Mergers and Acquisitions and Capital Market Activity
7.4 Investment Outlook
8.1 GDP Distribution, by Activity and Region
8.2 Insights on Capital Flows
8.3 Economic Statistics – Transport and Storage Sector Contribution to Economy
8.4 External Trade Statistics – Export and Import, by Product
8.5 Insights on Key Export Destinations
8.6 Insights on Key Import Origin Countries
**Subject to Availability on Public Domain