Mitsubishi Logistics Corporation

Business Details

Comprised of four businesses: the Warehousing Business (domestic and overseas storage and cargo handling), the Land Transportation Business (motor truck transportation), the Port Transportation Business (loading/unloading and storage of ships), and the International Freight Forwarding Business (global transportation network). Fuji Logistics Co., Ltd., Hishokura Transport Co., Ltd. and others operate domestically, while the Cavalier Logistics group, Mitsubishi Warehouse & Transport (USA), Inc., and the European Mitsubishi Warehouse company and others operate overseas. The business provides total logistics services to a diverse range of shippers including pharmaceuticals, food, apparel, and automotive parts, and is the core business accounting for approximately 87% of group operating revenue.

Recent Overview

Operating income declined, but business profit improved significantly by 84.4% year on year due to improvement in equity method results

Operating revenue from the Logistics Business for FY2026 (ending March 2026) was ¥238,628 million (up 0.4% year on year), a marginal increase. While the Warehousing Business and Port Transportation Business saw increased revenue, the International Freight Forwarding Business declined 6.4% due to lower ocean freight rates. Operating income decreased 8.4% year on year to ¥12,693 million due to increased facility rental expenses and personnel expenses. However, business profit increased significantly by 84.4% year on year to ¥15,116 million, due to a substantial improvement in share of profit (loss) of investments accounted for using the equity method, reflecting the absence of the prior-period recognition of a ¥8,818 million equity method investment loss related to goodwill for ITL Corporation. The Cavalier Logistics group fell short of plan due to the impact of U.S. trade policy and delays in the startup of new facilities. The group recognized an impairment loss of ¥4,927 million on goodwill, reducing the goodwill balance to zero.

Key Products

Growth Drivers

• Recovery in performance of U.S. and Chinese subsidiaries and an increase in cargo handling in the International Freight Forwarding Business (forecast for next period)
• Continued increase in handling of apparel, automotive parts and other items in the Warehousing Business
• Continuation of the increase in container cargo handling in the Port Transportation Business (up 13.9% in the current period)
• Promotion of the global expansion of total logistics services and the five priority category strategy based on the Management Plan [2025-2030]
• Stabilization of business profit through improvement in share of profit (loss) of investments accounted for using the equity method related to ITL Corporation (disappearance of the impact of the prior-period large-scale loss)
• Promotion of operational efficiency and appropriate fee collection through the introduction of advanced technology

Risks

• Continued increase in operating expenses such as facility rental expenses and personnel expenses against the backdrop of labor shortages and inflation
• Reduced cargo handling and delayed startup of new facilities at the Cavalier Logistics group due to the new U.S. administration's trade policy (tariff increases, etc.)
• Pressure on earnings in the International Freight Forwarding Business due to the continued decline in ocean freight rates
• Deterioration in performance of Chinese subsidiaries due to the economic slowdown in China
• Risk of additional impairment of customer relationship assets (¥20,370 million) remaining after the full impairment of Cavalier Logistics group goodwill
• Increase in outsourced transportation and handling expenses associated with expanded handling volume (a factor increasing operating costs in the next period)