Jan 8, 2014

Nittsu to expand market of door-to-door services

Nippon Express Co. (Nittsu) will embark on the full-fledged reinforcement and market expansion of its door-to-door multimodal transport services. The company kicked off and began marketing the NEX SKY-EX as a new brand under its international door-to-door multimodal transport service segment in January this year. The company aims to provide its customers with low-cost and high-quality services by capitalizing on the flexibility of its forwarding prowess that was cultivated through years of experience and consolidating its network of about 300 bases in Japan and around 460 offices overseas. Through the creation of brands and commercialization of its international door-to-door multimodal transport services corresponding to the needs of each shipper, Nittsu will build a system that provides transparent charges and lead times, as well as enhances the convenience of its services to the customers and enables the use of simple airfreight transport by shippers. It aims to respond to the growing demand for door-to-door multimodal transport and approach new customer bases. In the future, it plans to beef up its list of destinations and customer services toward better services.

The demand for door-to-door multimodal transport, such as for express cargoes, has been on the rise in recent years owing to the changing business climate in the manufacturing industry. Following the enhanced safety of airborne transport worldwide, there has been an increase in the number of cases in which the seller or buyer independently assumes the trade risks such as the transport costs and insurances. This has been partly brought about by the surge in the list of destinations with little tariff barriers thanks to the promotion of the FTA and EPA with the government. According to a person in charge at Nittsu, the move toward small-volume, multiple-item deliveries in logistics and the surge in short delivery time/frequent number of delivery are affecting the trade parameters, with the market seeing a shift to DDU, DDP and EXW that are easier to control for the seller or buyer, from the CIF, C&F and FOB modes thus far. This change is also attributable to the rise in the number of cases of trade consolidation at a single factory or business office by shippers through the enhancement of their logistics operations, as well as the growing cargo consolidation needs from customers stemming from their shift to multifunctional and miniaturized products and devices.

Over at Nittsu, they have launched the consolidated transport product NEX SKY-BASIC as a master brand that integrates the NEX line, as well as various NEX series services as a transport brand that is customized to the needs of customers. To those, it added two lines in January this year, comprising the NEX SKY-EX for documents and small packages, and the NEX SKY-EX FREIGHT for regular commercial cargoes with medium to heavy weight (of 45 kilos and above). Offered for use to destinations in more than 200 countries, the NEX SKY-EX innovates the services that Nittsu offered under such trade names as Express Cargo Jetpack and Express Document Courier. Meanwhile, the NEX SKY-EX FREIGHT capitalizes on the global network of Nittsu, offering services to 31 countries, centering on major destinations in Asia, Europe and the U.S. All the above products still adhere to the computation method that converts the dimensional weight at the time of freight rate computation to 1 kilo for each 6,000 cubic centimeters, thereby giving their users cost benefits.

The upgrade in Nittsu's multimodal transport services is also linked to the utilization of Haneda Airport. The company envisions that there will be a large number of cases in which cargoes will be loaded to international flights originating from Haneda for those bound to Asia and Europe, depending on the destination. As long as the cargoes that are picked up in the evening at the point of origin are hauled by air to Haneda and then loaded in the late night flights from Haneda, they can be delivered to their destinations the following day. Haneda Airport's summer schedule for 2014 states that the slots for departure/arrival of international flights will be increased in number, thereby significantly boosting convenience through connections of domestic and overseas networks based at Haneda. Nittsu plans to make use of the international forwarding prowess and domestic/international partnerships that it has cultivated thus far toward the tapping of new customers. With this, shippers that used to suffer from difficulty in using its existing international transport products will now enjoy improved user-friendliness and ease of use in Nittsu's services.

For the time being, the company's monthly targets at the start of its sales period have been set to 10,000 jobs in the NEX SKY-EX and about 300 tons in the NEX SKY-EX FREIGHT. Nittsu plans to further boost sales, centering on its core NEX series services, through such means as reinforcing its marketing system and expanding its list of destinations to include India, Bangladesh, Mexico and other countries.

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