Full steam ahead for Nippon Express’ maritime forwarding Vol.2

November 17,2021

― A global engine for forward propulsion

In the coming year, the company will be taking a major step towards this ambitious goal. It plans to transfer its recently established GNC (Global Non-vessel Operating Common Carrier Center) to Singapore to accelerate sales and standardise operations in its global freight forwarding business.

By centralising operations such as pricing previously controlled at a regional level, the GNC will provide three new functions with various benefits, says Kakiyama. First, it will enable the company to pursue joint-purchasing and negotiate better rates and secure space from carriers. As one of the three largest ports in the world, Singapore is home to numerous global carriers’ pricing centres as well as the Asia-Pacific headquarters for many shippers. GNC will connect the two.

The other two functions relate to improving operational efficiencies by standardising and digitalising services globally through the GNC. These include measures such as establishing digital platforms for bookings and estimates for customers as well as forming EDI (electronic data interchange) links with carriers.

“Placing the GNC in Singapore is also ideal to keep abreast of the latest market developments and hire the additional staff needed to internationalise and more effectively approach potential non-Japanese clients,” says Kakiyama.

In fact, Nippon Express’ Global Key Accounts division in Singapore comprised wholly of non-Japanese staff has already been knocking on the doors of the offices of major Western companies. This strategy of internationalising its staff, particularly at executive level, for local operations has been ongoing elsewhere, including many of the Western markets in which the company operates.

There are signs that such efforts are paying off. “We are gradually being called to more international bids and expanding the base of our business to non-Japanese clients,” says Kakiyama.

In terms of geography, the company will strengthen its presence in east and south-east Asia while expanding into other growth regions such as India, the Middle East, Africa, and central-eastern Europe. Sector-wise, the focus is on the five domains of semiconductor, pharmaceutical, automotive, electronic, and high fashion. Besides these, Nippon Express is eager to boost freight volumes in the burgeoning trade for FMCG (fast moving consumer goods), especially those originating from Asia.

The past few years has also seen a steady stream of M&A activity – for example the purchase of Italian Traconf in 2018 and US MD Logistics in 2020 – to strengthen its presence in the above areas. In addition, the company is eyeing acquisitions of companies that possess the kind of technologies and assets which may prove game-changing for the future of logistics, including maritime shipping.

This content was paid for and produced by Nippon Express in partnership with the Commercial Department of the Financial Times.