-- Nippon Express (China) Co., Ltd. (Chairman: Sumitoshi Matsuo), which administers Nippon Express's East Asia Region, and Nippon Express Korea Co., Ltd. (President: Masami Akiyama), both group companies of NIPPON EXPRESS HOLDINGS, INC. (President: Mitsuru Saito), have launched a new international ocean freight service, "Busan Hub x Japanese Regional Ports," connecting the Port of Busan in South Korea and regional ports in Japan.
■ Background to development
The logistics industry is facing a major challenge in dealing with medium- to long-distance trucking due to the future labor shortage expected to result from the stricter overtime regulations for truck drivers that will go into force in 2024.
Much of the import and export cargo shipped from/to Europe, the US, and Asia is transported by truck to/from various parts of Japan via major ports on the outskirts of major cities, so securing that means of transport constitutes another challenge to be faced going forward.
Given these circumstances, Nippon Express has launched a new service - "Busan Hub x Japan Regional Ports" - that stores inventory in Busan, South Korea, which has excellent shipping routes to and from regional ports in Japan, and transports this inventory by sea when ordered to the regional port nearest the delivery destination in Japan.
This service will shorten trucking distances in Japan, helping to secure transport and cut costs as well as reduce CO2 emissions.
■ Features of the "Busan Hub x Japan Regional Port" service
- The service offers an effective solution for meeting the overtime regulations applicable to truck drivers from 2024 and for reducing CO2 emissions by shortening domestic trucking distances.
- Nippon Express supports import and export via regional ports in cooperation with 30 NX Group business locations situated in regional ports throughout Japan and provides accurate and timely information on vessel movements and consultations on loading times and terminal operations.
- By utilizing the container routes between Busan Port in South Korea and regional ports in Japan plied by approximately 130 sailings weekly, a reliable means of transport to various parts of Japan can be secured and domestic transport costs reduced.
- The Asian hub port of Busan Port is an ideal hub-and-spoke base for a global network, with container routes connecting more than 500 ports in more than 150 countries and regions around the world. Busan Port is especially well-served by key routes to North America, Europe, and elsewhere.
- The warehouse used for this service is a Nippon Express warehouse located within the Busan Free Trade Zone (FTZ). The warehouse handles inventory control, packing, sorting, labeling, and other ancillary tasks, and centralized operations enable quality control and cost reductions.
In addition to this Busan-based service, the NX Group has launched a "Qingdao Hub x Japan Regional Ports" service utilizing a hub warehouse in Qingdao, China, to connect with regional ports for imports from China, which account for more than half of Japan's imports. The NX Group will continue meeting its customers' challenges and supporting their business expansion with its global network and accumulated expertise in advanced logistics.
■ Key Japanese ports of call for the "Busan Hub x Japanese Regional Ports" service
