Kuribayashi Steamship Co., Ltd.

Business Details

Encompasses domestic shipping (Hokkaido scheduled route, ferry, ship chartering), ocean-going shipping (near-sea routes), and port transportation (cargo handling, forwarding), among others. Main cargo includes paper products, commercial vehicles, agricultural products, and steel products. The company positions its response to modal shift demand as a pillar of its growth strategy, providing nationwide integrated land-sea transportation services centered on short- to medium-distance transport between Hokkaido and Honshu. In October 2025 (Reiwa 7), the company made Suzuki Shoten Co., Ltd. (beans and grains wholesale) a subsidiary, aiming to realize synergies by integrating it with the logistics network.

Recent Overview

Domestic scheduled routes saw lower sales and lower profit, while near-sea routes achieved lower sales but higher profit due to a focus on profitability. The segment overall saw sales decrease 0.8% and operating profit decrease 24.9%.

In FY2026 (ending March 2026), the Marine Transportation Business recorded sales of ¥48,411 million (down ¥411 million, or 0.8%, year-on-year) and operating profit of ¥1,734 million (down ¥575 million, or 24.9%, year-on-year). On domestic scheduled routes, commercial vehicles and paper products increased while agricultural products, steel products, and general consumer goods decreased, and costs rose due to persistently high fuel oil prices and rising labor and crew costs. The near-sea route business secured higher profit through profitability-focused spot deal acquisition. Fixed asset investment expanded to ¥3,442 million, more than double the prior period, clearly reflecting an active investment stance toward new vessels and transportation equipment. As a subsequent event, in April 2026 the company made Sanriku Unyu Co., Ltd. and K-Seven Co., Ltd. wholly owned subsidiaries through a share exchange.

Key Products

Growth Drivers

• Development of new cargo through promotion of modal shift (commercial vehicles progressed steadily in both short-to-medium and long-distance transport)
• Strengthening capability to respond to modal shift demand through active investment in new vessels and transportation equipment (fixed asset increase of ¥3,442 million in the current period)
• Expansion of the Group's transportation network through making Sanriku Unyu Co., Ltd. and K-Seven Co., Ltd. wholly owned subsidiaries (effective April 2026)
• Realization of synergies from integrating the logistics network with Suzuki Shoten Co., Ltd.'s (beans and grains wholesale) procurement and sales network following its acquisition as a subsidiary
• Strengthening acquisition of biomass-related spot cargo centered on third-country routes in near-sea shipping
• Continued fuel cost containment through energy conservation and efficient vessel allocation

Risks

• Cost increase pressure from persistently high fuel oil prices (including uncertainty over Middle East conditions, including the risk of a Strait of Hormuz closure)
• Structural decline in domestic demand for paper products, the main cargo (partially offset by changes in the paper industry's supply structure, but remains a structural risk)
• Revenue instability in the ocean-going shipping segment due to prolonged weakness in near-sea vessel charter market conditions
• Risk of transport volume fluctuation due to poor agricultural harvests from unfavorable weather and reduced consumer spending on general goods amid high prices
• Risk of cost increases from rising labor, crew, and materials/equipment costs
• Risk of decreased steel product transport volume due to weak construction demand
• Risk of increased borrowing costs due to rising interest rates