Press Release

Features of new service

• This hanger transport service will be offered as a new addition to the lineup of NEXSAO-CAMBODIA SAT multimodal transport services from Cambodia launched in April 2014.
• The key feature of this service is that it will use hanger kits installed in ordinary ocean cargo containers instead of special garment-on-hanger (GOH) containers.
• Using hanger kits obviates the need for access to GOH containers, thus allowing shipping to be carried out in line with customers' schedules.
• Nippon Express will install hanger kits in containers prior to shipping.
• Suits, dresses, and other garments shipped from sewing plants in Cambodia will be transported hanging on hangers in containers to major ports in Japan.
• Plants will thus able to reduce their packing workload and their use of packing materials, while stores will able to immediately display and sell items without having to go to the trouble of unpacking them.
• The service charges will be readily comprehensible, with only a hanger kit usage fee and an installation fee added to the freight rate.
• NEXSAO-CAMBODIA SAT comprises high-speed multi-modal transport services emphasizing speed and safety that use double-licensed vehicles from Nippon Express (Vietnam) to transport cargo from Cambodia to Ho Chi Minh City without having to transship at the border, and then ships to transport the cargo by sea from Ho Chi Minh City to Japan.
• Lead time is up to nine days shorter than maritime transport from Cambodia to Japan, and transport costs are approximately 80% lower than air transport.

Background to product development

• Apparel companies have set up numerous sewing plants in Cambodia, and it has become a hub for exports to Japan.
• If finished garments are packed into boxes for transport, consignees in Japan will need to remove the wrinkles from the folded garments, meaning extra work before the items can be displayed in stores.
• Transporting garments in GOH containers eliminates the need to remove wrinkles after the garments arrive in Japan, but shortages of GOH containers in Japan during certain shipping periods could introduce uncertainty into shipping schedules. Nippon Express has independently procured hanger kits and developed a service that readily enables hanger transport in ordinary ocean cargo containers
• Many products have short delivery deadlines, so Nippon Express has been strengthening its lineup of multimodal transport services to meet the demand for quicker delivery.

Future plans

• Many apparel companies and other manufacturers are expected to expand their operations into Cambodia, and Nippon Express will consider transport methods tailored to a variety of products besides apparel goods.

Nippon Express will continue combining a variety of transport modes to enhance transport options within the ASEAN region and thereby provide customers with services linking a booming Asia to Japan and the rest of the world.