The Mitsui Chemicals Group is working to improve the work environment for truck drivers and ultimately to reduce the workload for logistics providers, by reducing the standby time for truck drivers while waiting for loading. In 2024, a truck berth booking system was introduced at both the Osaka Works and Iwakuni-Ohtake Works. As a result, it is expected that on-site congestion and waiting time for loading/unloading in the past can be reduced, contributing to shorter working hours for drivers and alleviating the operational burden on logistics providers. Going forward, we will continue to aim for the establishment of a sustainable logistics framework by expanding the system to other logistics hubs and enhancing its functionalities.
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Logistics
Stable Transportation (Sustainable Logistics)
The logistics environment has entered an era in which logistics providers and shipping companies choose the cargo owners and the type of cargo. To achieve stable transportation (sustainable logistics), we must be selected by logistics providers and shipping companies.
One of the concerns regarding stable transportation is the shortage of human resources for logistics, and the labor environment, including long working hours, has been pointed out as a factor underlying this shortage. In order to regulate working hours, as part of our work style reforms, we began applying an upper limit on truck driving working hours which started in April 2024. While we expect this to improve the working environment, there are serious problems that the shortage of drivers will increase due to the decrease in transport volume (the 2024 issues). Furthermore, with the enforcement of two revised logistics laws* in April 2025, shippers will be required to make efforts to shorten cargo waiting time for loading/unloading and improve loading efficiency, making logistics optimization an urgent priority. The Mitsui Chemicals Group, together with our logistics partners, is working beyond the boundaries of the company to improve the working environment and build efficient transportation schemes to ensure logistics human resources and logistics safety, and to reduce GHG emissions.
* Two revised logistics laws:
To address the driver shortage crisis in Japan and promote sustainable growth in logistics, revisions to the Act on Advancement of Integration and Streamlining of Distribution Business (Formerly) and the Motor Truck Transportation Business Act will come into effect in April 2025. These revisions will introduce regulatory measures for both shippers and logistics operators, as well as for transactions involving truck operators.
Initiative to Reduce Driver Standby Times through Introducing a Truck Berth Booking System
Improvement of Cargo Handling Work Environment
For many years in the logistics industry, there has been a practice where, in some cases, drivers perform ancillary tasks such as packing and unloading. In 2019, Mitsui Chemicals submitted a voluntary action declaration under the "Sustainable Logistics" initiative. In 2024, Mitsui Chemicals endorsed the Voluntary Action Plan for Optimization and Productivity Enhancement of Chemicals Logistics, issued by the Chemicals Working Group under the Physical Internet Realization Council. In alignment with this initiative, we are collaborating across business and quality assurance divisions to engage with our logistics partners, aiming to eliminate ancillary tasks performed by drivers and promote fair task allocation and sustainable logistics practices.
Participation in Initiatives
Mitsui Chemicals announced its support for the sustainable logistics initiative proposed by the Ministry of Land, Infrastructure, Transport and Tourism and the Ministry of Economy, Trade and Industry and the Ministry of Agriculture, Forestry and Fisheries, and submitted a declaration of its relevant independent activities. The sustainable logistics initiative aims to address the growing driver shortage and ensure logistics stability by improving truck transportation productivity and logistics efficiency, and by creating a comfortable working environment for women and drivers over 60 years old. The table below describes the initiatives laid out in Mitsui Chemicals’ declaration of its independent activities.
| Initiative | Details and expected outcome |
|---|---|
| Introducing a booking system | The introduction of a booking system for trucks will help cut down on waiting time. |
| Utilizing pallets and more | By making use of pallets and returnable box, cargo handling can be sped up. |
| Advance notice of shipment information | Conveying information from shippers about inbound and outbound shipments in order to give logistics providers more time to prepare. |
| Utilizing expressways | Mitsui Chemicals will enter into earnest negotiations about how to make use of expressways and who should bear the fees for this. |
| Modal shift to sea and rail transport | Mitsui Chemicals will strive to reduce GHG emissions by making active use of sea and rail transport for long-distance shipments. |
| Compliance with the law when selecting logistics providers | Mitsui Chemicals will take into account the compliance status of logistics providers when selecting. |
| Safety measures for cargo handling operations | Providing clear operational instructions, ensuring safe passage, establishing footholds and more will help to ensure more thorough worker safety. |
| Stopping or suspending operations during extreme weather | If extreme weather conditions occur or are expected to occur, Mitsui Chemicals will avoid making unreasonable requests for shipments. |
Modal Shift
The Mitsui Chemicals Group has been advancing modal shift initiatives to secure stable transportation and address environmental concerns.
Modal Shift from Trucking to Rail Container Transportation
In 2023, we initiated efforts to shift the mode of long-distance transportation between Fukuoka Prefecture and Saitama Prefecture from trucks to rail. As a result, we were able to reduce CO2 emissions by 84% compared to our previous levels and driver working hours by 90%. In the same year, we also launched a modal shift initiative to switch long-distance transportation between Yamaguchi Prefecture and Osaka Prefecture from trucks to rail. This initiative resulted in a 90% reduction in CO2 emissions and a 90% reduction in driver working hours compared to previous levels. These two initiatives jointly received Special Prizes together with our logistics providers at the 25th Logistics Environment Award by the Japan Association for Logistics and Transport.
In the same year, 2023, we collaborated with multiple logistics providers to transition all long-distance truck transportation between Kawasaki City, Kanagawa Prefecture, and Omuta City, Fukuoka Prefecture, to freight rail transport for the entire Tokyo-Fukuoka corridor—a complete modal shift. As a result, we achieved a 72% reduction in CO2 emissions compared to previous levels and reduced driver working hours by 2,929.5 hours per year. This initiative was recognized for significantly reducing driver working hours and establishing a sustainable transportation scheme at the "1st Modal Shift Excellent Business Operator Grand Prize Awards" hosted by the Japan Association for Logistics and Transport, and received the "Modal Shift Excellent Business Operator Award" (Collaboration & Cooperation divisions).
Mitsui Chemicals has been certified as an Eco Rail Mark company by the Administration and Screening Committee of Japan’s Ministry of Land, Infrastructure and Transport.
Eco Rail Mark
Modal Shift from Trucking to Marine Transportation
In 2019, we made a modal shift in the transportation of products using 500-kg flexible container bag from the Ichihara area to the Chugoku area from trucks to marine transportation by coastal vessels. For this purpose, a special 20-foot-high cube container (the utility model right obtained) and a special rack (the design right obtained) have been manufactured to create two-tiered flexible container bag, which could previously only be placed flat, thereby improving loading efficiency, further reducing CO2 emissions, and saving driver labor. We received the Award for Eco-Friendly Logistics Technology at 20th Logistics Environment Award of the Japan Association for Logistics and Transport. As a result of the development of this initiative, we are converting to coastal vessels in the Kyushu area from March 2021.
In 2021, we collaborated with Asahi Kasei Corporation on a modal shift from trucks to ships for long-distance transportation between Chiba and Yamaguchi/Hiroshima. In this initiative, container round use was also realized by using ocean container vessels and liner vessels, with Mitsui Chemicals using the outbound vessels and Asahi Kasei using the inbound vessels. This has contributed to a roughly 40% reduction in annual CO2 emissions and contributed significantly to solving the driver shortage issue. Furthermore, by using side-end open containers, cargo handling work has been reduced by approximately 80% compared to conventional containers. This has resulted in a dramatic improvement in work efficiency. These efforts have been recognized with a Special Prize in the 22nd Logistics Environment Award organized by the Japan Association for Logistics and Transport.
Dedicated racks enable flexible container bags to be stacked
Side-end opening containers
Container Round Use with Appliance Manufacturers from Different Industries
In 2022, in collaboration with a home appliance manufacturer from a different industry (hereinafter referred to as “Company A”), we have started adopting container round use by loading Company A’s products on the return trip of our dedicated bulk containers managed by our logistics provider, Sankyu Co. This made it possible for Mitsui Chemicals to avoid the return of empty containers between Gunma and Iwakuni, and for Company A to achieve a modal shift between Funabashi and Iwakuni out of the overland transportation between Gunma and Fukuoka. This is expected to improve loading and reduce CO2 emissions.
Joint Logistics Flow
Joint Logistics with Other Companies
The Mitsui Chemicals Group aims to build a robust supply chain that can flexibly respond to changes in the logistics environment by collaborating with other companies to standardize and streamline the logistics of chemicals.
Shared Logistics System for Small-lot Products by Other Companies in the Same Business
Since 2016, Mitsui Chemicals has been engaged in joint logistics with neighboring companies in the Keiyo area. Previously, the transportation was mixed with general merchandise and had to go through multiple transshipment bases. However, by using a logistics provider specializing in chemicals, we have achieved more specialized and efficient transportation by consolidating trunk line transportation from pickup to delivery bases and consolidating delivery from the delivery bases to each company’s customers. This contributes to solving the driver shortage issue and reducing CO2 emissions and quality problems such as damage. This system started with shipments destined for the Tohoku areas and has expanded to destinations in the Hokuriku and Koshinetsu areas. To boost the shared logistics system, activities will be developed together with the logistics providers and shippers who are participating in the system. There are different logistics collaboration schemes in both goods owners and chemical companies. We are currently working to establish a combined transportation system. This system should be able to replace or supplement some parts of the national transportation networks, through which we plan to create a stable, small-lot transportation scheme for chemicals.
Shared Logistics System
Joint Study for Standardizing and Streamlining the Chemical Logistics
In an effort to address the extremely critical issue of insufficient transportation and storage capacity in logistics within the chemical industry, we have participated as a secretariat in the "Chemicals Working Group (hereinafter referred to as Chemicals WG)," established as a subordinate organization of the Physical Internet Realization Council led by the Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism. Through the Chemicals WG, we are promoting collaborative initiatives with other companies in the same industry.
We have launched a joint study within the Chemicals WG to standardize and optimize chemical logistics. In addition to joint transportation and mutual utilization of transportation networks, we will also use DX technology to study transportation routes and matching for the expansion of joint logistics projects.
In addition, among the participating companies in the chemicals WG, five companies—the Mitsubishi Chemical Group, Mitsui Chemicals, Tosoh, Toray and Prime Polymer—carried out a demonstration test utilizing a logistics data platform and logistics information standards from September to December 2024. In addition to an on-site trial involving real freight and real vehicles between chemical complexes spanning Yokkaichi to Ichihara, the demonstration test incorporated a simulation of joint logistics between Nagoya and the Hokuriku region, as well as an analysis of transport efficiency between Ichihara and the Tohoku region, to demonstrate the effects of joint transport and the usefulness of a joint logistics platform. The on-site trial in particular found striking results, including a 20 percentage point improvement in truck fill rate and a 28 percent reduction in CO2 emissions.
Visualization of Energy Usage and GHG Emissions in Transportation
In its climate change policy, Mitsui Chemicals Group aims to “Maximization of the value chain contributions,” and has also been working to reduce GHG emissions in the logistics process for product transportation. However, due to its characteristics, there is an issue in logistics in that it is difficult to visualize efforts made to reduce GHG emissions through individual initiatives from the GHG emissions and the energy intensity in transportation. This is because these figures are likely to fluctuate depending on the change in product shipment volume and the presence or absence of logistics problems attributable to natural disasters. Nevertheless, in our initiatives to reduce GHG emissions, we have set separate targets for domestic logistics (mainly transport by rail, truck, ship, and air) and international logistics (mainly container transport by ship) from fiscal 2022 in order to monitor the progress based on quantified information and to improve our efforts. We are working to manage and monitor the progress according to each situation.
In particular, in international logistics, we are collaborating with Mitsui-Soko Holdings to identify GHG emissions from container transport by container vessel, and the GHG emission calculation values are then validated by DNV, an international third-party organization. In the future, we will work to reduce GHG emissions throughout the entire value chain, including taking into consideration GHG reduction efforts and contribution to GHG reduction when selecting vessels to be chartered.
Additionally, the BI tool introduced in 2024 has enabled us to simultaneously calculate and easily monitor two types of data—energy usage and GHG emissions—in product transport, allowing us to respond promptly to customer inquiries regarding GHG emissions. In addition, the real-time visualization of total GHG emissions and its breakdown has enabled the exploration and implementation of reduction targets. By leveraging BI tools to identify inefficient long-distance transportation and considering modal shifts and changes in transport routes across different businesses and regions, we aim to work with our customers to advance measures for Reduction of GHG emissions.