Yamato Bleeding Moving-Service Customers over Billing Scandal

Economy

Tokyo, Aug. 25 (Jiji Press)--The recent revelation of overbilling cases involving Japanese logistics company Yamato Holdings Co. <9064> is forcing customers of its corporate moving services to seek alternative providers.

The Yamato group stopped accepting orders for the moving services after announcing in late July that it had overbilled 2,640 companies, or about 80 pct of the services' customers, by a total of 1.7 billion yen since May 2016.

Yamato Holdings President Masaki Yamauchi has said the group will not resume the services until it "confirms that preventive measures are functioning." The service suspension is seen as likely to continue until the fiscal 2018 end next March.

Among customers, Renesas Electronics Corp. <6723> has used the Yamato services for most relocations of its offices and its employees' homes. The company is now receiving and examining cost estimates from other moving firms.

"We're considering our response, including a possible change of contractor," an official of Renesas' corporate communication department said.

[Copyright The Jiji Press, Ltd.]

Jiji Press