Japan’s largest shipping company, Nippon Yusen, better known as NYK Line, is considering withdrawing part of its road freight transport from Russia within months, the Japanese edition of Nikkei writes.
It became difficult for the company to continue its operations after Russian actions in Ukraine led to international sanctions and boycotts and demand for delivery services fell.
Currently, transport services in Russia are still carried out in small volumes, but there are limiting factors: the suspension of car production in Russia and problems with money transfers.
NYK Line handles the transport of vehicles overland in Russia through its subsidiary NYK Auto Logistics (Rus). The division used to be the logistics company of Russia’s largest car dealer, Rolf, until NYK Line took full ownership of it in 2020. Since then, the subsidiary has been responsible for activities such as the transportation of new vehicles throughout Russia using trailers and rail and freight handling.
NYK Line moved approximately 180,000 vehicles in Russia in fiscal year 2021 (end of March), which is equivalent to 10% of new vehicle sales in the country. As the company prepares to leave Russia, it will consider selling its subsidiary to local companies.
The withdrawal is expected to have little effect on the activities of Japanese automakers, as they have suspended their activities since the start of the special operation.
Source: Z R