Challenges in Japan’s Trucking Industry
In Japan, road transport accounts for 90% of goods movement, as reported by AFP’s Richard A. Brooks. Truck driver Fujio Uemura is feeling the strain of new regulations aimed at improving working conditions, which are having unintended consequences for the logistics sector and may lead to higher consumer prices.
New Regulations in Effect
The regulations, intended to alleviate the burdens of poorly compensated trucking jobs, aim to make the industry more appealing to younger generations. Uemura, who has just completed a 1,000-kilometer journey delivering fish to Tokyo, notes the shift in work practices.
Long Hours and Health Risks
Previously, truck drivers faced no real limits on working hours, often driving excessively long shifts to increase their low incomes. However, new rules restrict annual overtime to 960 hours, averaging out to 80 hours per month. This change comes in response to the unhealthy lifestyle associated with long, irregular driving hours, which contribute to high rates of health issues among truckers.
Economic Position of Trucking
Despite being critical to Japan’s economy, the trucking industry remains marginalized in the economic landscape. Truck drivers typically work 20% more than the average worker but earn 10% less, which amounts to about 4.5 million yen ($30,000) annually. Around 20% of drivers work 60 hours or more each week.
Impact of New Rules on the Industry
Many of Japan’s 63,000 trucking companies are small and have struggled even before the recent regulatory changes. They often survived by lowering prices and offering unpaid loading services. Senior officials like Haruhiko Hoshino from the Japan Trucking Association warn that reduced work hours could lead to fewer deliveries, increasing the risk of supply shortages by 2030.
Government Measures and Social Responsibility
The government is considering solutions to the so-called “2024 Problem,” urging companies to offer better conditions for trucking firms, including avoiding demands for discounts. However, experts like Hiroaki Oshima from Ryutsu Keizai University argue that ultimately, consumers must accept higher prices to support the trucking industry. This could pose a challenge for Japan’s new Prime Minister, Shigeru Ishiba, amid rising inflation concerns.
Shifts in Job Roles and Costs
Changes in logistics operations mean that Uemura now relies on separate drivers for pickups before heading to Tokyo, increasing costs for his employer, Portline Service. The company’s owner, Katsuya Doi, expressed frustration over the situation, stating that the burden shouldn’t fall solely on transportation companies or their clients. Yet, Uemura’s son is entering the industry, illustrating the enduring attraction of trucking for some.
