Challenges in Japan’s Logistics Industry: Driver Shortage and Rising Bankruptcies

Six months have passed since the introduction of new overtime restrictions for truck drivers in April. Despite concerns about the shortage of⁢ truck ⁣drivers in the logistics industry, there have‍ been‌ few ‍cases ⁣where goods could not be transported. However, maintaining ⁣logistics networks remains difficult as small- and middle-sized⁤ companies struggle to secure enough drivers and⁤ cargo owners face a⁣ surge in labor costs. Many transport companies have gone bankrupt‌ due to driver shortages.

Hokushow​ Corporation Inc., a ⁢company ⁣based in Tokyo that ⁣delivers goods purchased from online grocery‌ stores and home appliances, is ⁣facing a serious⁤ shortage of workers as fewer people want to become truck ⁣drivers. The‍ company operates ‍about 150‌ trucks on weekdays but now has to⁤ comply with the new⁣ overtime restrictions despite strong⁤ delivery demand this summer.

Headhunting of truck drivers by‌ other logistics companies has increased due to labor shortages, making it challenging for Hokushow ⁤to secure enough staff. The company is negotiating with​ cargo owners to increase freight charges in order to offer better terms for their employees.

Cargo owners are also facing difficulties. Some negotiations over rates with transport companies that⁣ transport agricultural ⁣products are running into problems as the transport companies demand significant increases in freight charges.

While there haven’t been serious disruptions in nationwide goods transportation, some issues have arisen. Changes in departure times for trucks transporting marine products⁣ landed at⁢ a port have made it impossible for fishermen’s‌ cooperatives to ship some⁢ fish fresh, resulting in reduced prices when they are frozen instead.

The upper limit of ⁤960 hours ‌per year imposed on truck drivers’ overtime has caused‌ concerns ⁣among those who had already worked many hours before the ⁣restriction was implemented. There are worries about potential driver shortages towards the end of the year.

The transport ministry has launched a survey on working hours of truck drivers due to these concerns. However, ⁢efforts such as constructing ⁣dedicated lanes for self-driving cargo vehicles will⁢ take time and labor shortages are expected to continue.

A growing number of logistics companies are going bankrupt due to factors such‌ as fuel ​price surges and labor shortages caused by limits on​ overtime. To​ deal with cost increases and secure sufficient workers, logistics‌ companies need to⁢ raise wages and increase freight charges.

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