Japan Fair Trade Commission issues warning to Senko for violating the Subcontracting Act, including unpaid cargo handling and prolonged waiting times for cargo.

August 12, 2025 / 3PL/Logistics company

PR article

On December 12, the Japan Fair Trade Commission issued a recommendation to Senko for violating Article 4, Paragraph 2, Item 3 of the Act on Prevention of Delay in Payment of Subcontracting Fees, etc. (Subcontracting Act) (prohibition of requesting the provision of unfair economic benefits).

20251212koutori - Japan Fair Trade Commission issues warning to Senko for violating the Subcontracting Act, including unpaid cargo handling and prolonged waiting times for cargo.

Senko had been entrusting the transportation of cargo contracted by shippers to subcontractors, but between December 2022 and November 2025, it unfairly harmed the interests of 17 subcontractors by having them perform loading and unloading (cargo handling operations) and other incidental services (incidental services) free of charge at facilities managed by Senko.

Furthermore, between December 2022 and March 2024, due to its own circumstances, such as not having completed preparations for loading and unloading cargo, the company unfairly harmed the interests of 19 subcontractors by forcing them to wait for extended periods of time free of charge within facilities managed by the company for the delivery of cargo.

The recommendation calls for the company to promptly pay its subcontractors an amount equivalent to the costs incurred for having Senko perform cargo handling, ancillary work, and waiting times, after obtaining confirmation from the Japan Fair Trade Commission. It also calls for an investigation into whether or not Senko performed cargo handling, ancillary work, or long waiting times free of charge, and if such facts are found, to confirm by a resolution of the board of directors that necessary measures will be taken to protect the interests of the subcontractors.

The recommendations also include regular audits by legal staff to ensure compliance with the Subcontracting Act, regular training for executives and ordering personnel on compliance with the Subcontracting Act, notification of the implementation status to subcontractors, and reporting to the Japan Fair Trade Commission.

On the same day, Senko issued a statement saying, "We take the recommendation very seriously and will make a board resolution on the necessary matters, as well as take necessary measures to improve our internal systems, such as conducting in-house training on the Subcontracting Act. We will offer to pay the equivalent amount of the costs for cargo handling, incidental work, and long waiting times to the affected businesses and will respond in good faith. We will also check the transaction status with other affected businesses, and if similar actions are found, we will review the pricing and the content of the contracted work. We will promptly implement the requested measures, such as thoroughly informing everyone in the company about the recommendation, so that violations of the Subcontracting Act do not occur in future transactions."

Japan Fair Trade Commission (JFTC) launches special website for the "JFTC Law and Promotion Law" to come into effect on January 1, 2026.

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