Yamato to Hike Parcel Rates

Japan's leading logistics and express delivery firm Yamato Holdings has announced it will raise basic rates for its door-to-door parcel delivery services as early as September.

Yamato will use rate hike to reduce staff shortages
Yamato will use rate hike to reduce staff shortages

The increase, which is the first in 27 years and comes as Yamato is facing serious staff shortages and a continuing boom in on-line shopping in Japan, will be used to improve working conditions, the company said.
In addition, the fee hikes will be used for capital expenditures, including information technology-related investment to reduce redelivery burdens and spending to promote the use of delivery lockers.
A Japan Times report said the company’s problems reflect Japan’s demographic woes, including a chronic manpower shortage caused by a birth rate that has been low for decades, and by a rapidly graying population.

Delivery price to be raised by 6 percent in average
In another attempt to ease the burden on its overworked employees, Yamato said it will review steep discounts for large-lot corporate clients, such as Amazon, which has also been asked to reduce the assignment of same-day deliveries. Amazon has complied with the request and has started to subcontract part of its same-day deliveries to Japan Post.
Yamato Transport Co., the holding company's principal operating unit, will hike its basic shipping fee for door-to-door parcel deliveries by yen140 (US$1.25) to yen180 (US$1.60), depending on package size.
Yamato Transport said the fare hike will raise the average delivery price by 6 percent in fiscal 2017, which started this month, from 559 yen per parcel last year.
The company handled a record 1.87 billion packages over the past year through March. It  expects to reduce that volume by 80 million items in the current business year.

Nol van Fenema



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