NYK has started the integration of its contract logistics division NYK Logistics with its airfreight forwarding business Yusen Air & Sea Service, bringing into being a new company called Yusen Logistics.
The start of integration realises the intention outlined by NYK’s president Yasumi Kudo in his new year’s speech in which he said the move would be made “to establish a structure capable of fully serving all logistics needs of customers”.
The integration is being launched in Japan with European integration due to begin on 1st April 2011. Completion there is by 31st March 2012 at the latest.
“The time required in Europe is primarily due to a need to cater for the different regulations and taxation systems in individual European countries,” said the company in a statement.
The company went on to state that Yusen Logistics will combine the global expertise in airfreight forwarding, ocean freight forwarding, land transportation and customs clearance as well as logistics plan proposal and implementation. The new company will be managed globally through five strategic areas: Japan, East Asia, South Asia & Oceania, Europe and the Americas.
With regard to the impact on automotive customers, an NYK spokesperson said that the merger of the NYK Logistics and Yusen Air & Sea Service will allow the company to better serve the logistics needs of its customers in ocean/air freight forwarding and contract logistics’ at one stop’.
“The benefit is not limited to ocean freight. For the automotive sector, we offer the PDI operation, terminal business and milk run as well as cross dock,” he said. However, the company said it was too early too early to specify how the business will organise individual trades at this stage.
The company’s outline for structural reform includes the strengthening of vehicle transport by sea through the establishment of a more flexible fleet mixture that can accommodate fluctuations in cargo volumes and changes in fleet planning policies. It is also aiming to enhance its ability to meet export demand from China and India.
Yusen Logistics global president, Shunichi Yano, said, "Moving ahead, the company will pursue an even higher level of service quality, better tailored to customer needs in the two key business areas of air/ocean freight forwarding and contract logistics. We also intend to generate greater customer satisfaction through a host of services according to customers' logistics needs."