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Japan's parcel shippers forced to revise unprofitable strategy

Yamato Transport introducing rate hikes, delivery innovations

TOKYO -- The rise in online shopping has expanded business for Yamato Transport and other Japanese parcel shippers to record levels, but higher labor costs and stiffer competition have stretched those operations thin and nullified profit growth.

Yamato Transport, which holds the leading market share in domestic home deliveries, handled 1.71 billion packages between April 2016 and February of this year, an 8% jump from a year earlier. Annual package volume is on track to an all-time high in the current fiscal year ending March 31.

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