Nippon Express Co., Ltd., a group company of NIPPON EXPRESS HOLDINGS, INC. (President: Satoshi Horikiri), has launched a new international transport business continuity plan (BCP) service to keep customers’ logistics operations running even during a large-scale disaster such as a Nankai Trough earthquake. This service minimizes risk in the event of a disaster and establishes stable supply chains by combining a nationwide network of business locations, an international transport scheme that utilizes Busan in South Korea as a hub, and comprehensive insurance policies.
Background to service development
Amid the increasing risk of a Nankai Trough earthquake, logistical disruptions caused by earthquakes and tsunamis have become a major issue, as most of Japan’s major ports are concentrated along the Pacific coast. The top five ports—Tokyo, Yokohama, Kobe, Nagoya, and Osaka—account for about 70% of Japan’s total container handling volume, and any damage to these ports could severely affect both domestic and international logistics. Accordingly, the NX Group has been developing a system capable of flexibly and rapidly maintaining logistics in the event of a disaster by utilizing its nationwide and overseas networks of bases.
Overview and features of the new service
This service leverages Nippon Express’ domestic network—one of the largest in Japan, with 2,130 business locations and 1,050 warehouses—to ensure stable supply chains by utilizing business locations and traffic routes spared from the disaster. Cargo received at warehouses across Japan will be cleared through customs and then forwarded to Busan using NX Korea’s Busan Global Logistics Center (BGLC) as a hub for bonded inventory management and sorting while transport routes to Europe, America, Asia, the Middle East, Africa and elsewhere are secured. In addition, air transport from Busan via Incheon International Airport will also be offered to meet a variety of emergency transport needs. This service will be available for both imports and exports to/from Japan.
Separate cargo insurance policies have heretofore been required for each of the multiple transport and storage stages, but this service incorporates a single comprehensive insurance policy developed in cooperation with Sompo Japan Insurance Inc. that covers through transport from Japan to Busan and onward from Busan to other parts of the world, thereby simplifying insurance procedures and reducing costs.
The NX Group is ready to support the business continuity of its customers by utilizing its global network to provide BCP-ready solutions that combine alternate transport routes and modes.