The Physical Internet Realization Council led by the Ministry of Economy, Trade and Industry (METI) and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) is having its Chemicals Working Group tackle issues emblematic of the “2024 problem” in logistics, such as shortages of transport and storage capacity – these being difficult for individual companies to solve themselves. These efforts involve both Working Group members and the chemical industry as a whole.
For the Chemicals Working Group’s latest endeavor, several member companies – the Mitsubishi Chemical Group, Mitsui Chemicals, Tosoh, Toray and Prime Polymer – made use of subsidies from METI and MLIT to carry out a demonstration test over September–December 2024. This demonstration test employed a logistics data platform and logistics information standards promoted by the government via the Physical Internet Realization Council.
In addition to an on-site trial involving real freight and real vehicles between chemical complexes spanning Yokkaichi to Ichihara, the demonstration test incorporated a simulation of joint logistics between Nagoya and the Hokuriku region, as well as an analysis of transport efficiency between Ichihara and the Tohoku region, to demonstrate the effects of joint transport and the usefulness of a joint logistics platform. The on-site trial in particular found striking results, including a 20 percentage point improvement in truck fill rate and a 28 percent reduction in CO2 emissions.
As the participants in this demonstration test were able to confirm the feasibility of joint logistics and resulting logistics optimization, aims in future are to gradually expand the scope of these efforts and increase the economies of scale provided by digitalization. The test also found that in order to make joint logistics a reality, it will be important to standardize logistics operations between various consignors and logistics operators, as well as to revise business practices. Participants will use the knowledge gained through this demonstration test as a framework to follow the voluntary action plan released through the Chemicals Working Group as they strive to put said plan into motion.
Going forward, it is hoped that – by pursuing the creation of a transport model that can be deployed throughout Japan – participants will be able to contribute to the sustainability of the Japanese chemical industry through achieving sustainable logistics and reducing GHG emissions from logistics.