Logistics
Stable Transportation (Sustainable Logistics)
The logistics environment has entered an age where logistic 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.
The poor working environment, such as long working hours, are considered to be the cause of the serious human resources shortages in the logistics industry. In addition, improving logistics efficiency is an urgent challenge as we work to address the 2024 issues* and achieve carbon neutrality by 2050. The Mitsui Chemicals Group, together with its partners involved in logistics, 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.
*2024 issues:
From April 1, 2024, the grace period for applying the truck driver overtime regulations will end and the limit of 960 hours of overtime per year will apply to truck drivers, so there are concerns about a further shortage of drivers in Japan.
Project to Reduce Driver Standby Time
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. The Ichihara, Osaka, and Iwakuni-Ohtake Works have introduced an advance booking system for loading operations, which has reduced the need for drivers to wait early in the morning for their turn. The Group is currently promoting further improvements to the work environment of truck drivers, including updating the booking system to cover all loading operations.
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 workers 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 partners | Mitsui Chemicals will take into account the compliance status of Logistics partners 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 promoting modal shifts, starting with a joint effort by five companies including Mitsui Chemicals, which was certified by the Ministry of Land, Infrastructure, Transport and Tourism as a “Modal Shift Promotion Project” in fiscal 2017.
Modal shift from trucking to rail container transportation
In 2017, we switched the product transportation between our Ichihara area (Chiba Prefecture) and the Ohtake area (Hiroshima Prefecture) of DOW-MITSUI POLYCHEMICALS CO., LTD., our affiliate, from truck to rail. Furthermore, in August of the same year, large containers provided by Japan Freight Railway Company (JR Freight) were introduced in full for container round use* based on the shared logistics system of the Mitsui Chemicals Group. These efforts have assured stability in the mode of transportation, reduced CO2 emissions by 70% and reduced working time for drivers. They were achieved through the partnership between the Mitsui Chemicals Group, JR Freight and our logistics partners.
* Container round use:
Container round use is a concept that returning the container with another cargo after unloading the cargo on the outbound instead of returning “Empty.”
To realize container round use
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.
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 domestic vessels in the Kyushu area from March 2021.
Dedicated racks enable flexible container bag to be stacked
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.
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 partner, 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 partner 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 partners 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
The Mitsui Chemicals is working with other companies in its industry to solve the extremely important issue of insufficient logistics transportation and storage capacity in the logistics of the chemical industry.
In fiscal 2022, we have launched a joint study with the Mitsubishi Chemical Group*1 to standardize and optimize the 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 July 2023, a Chemicals Working Group was established*2 within the Physical Internet Realization Council led by the Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism, with Mitsui Chemicals, Inc., Mitsubishi Chemical Group, Tosoh Corporation, and Toray Industries, Inc. serving as its secretariat. Through the activities of this working group, we aim to realize sustainable logistics that balances productivity and safety with reduction of carbon dioxide emissions through measures such as reforming and standardizing business practices in logistics, formulating action plans for DX promotion, and disseminating and implementing these plans to stakeholders.
Setting Logistics GHG Emission Reduction Targets
In its climate change policy, Mitsui Chemicals Group aims to “maximize 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.
*Energy Intensity for the Transportation of Products:
Amount of energy consumed (crude oil equivalent in kiloliters) / Volume of product shipments (thousands of tons).