Japan's crackdown on truck driver overtime raises fears of economic breakdown

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It has sparked fears of a critical shortage of truck drivers that could leave a third of all cargo undelivered. Read more at straitstimes.com.

TOKYO - Truck driver Yuichi Tomita has been delivering packages all over Japan for two decades, often clocking 40 straight hours on the road. He says the work is tough but a source of pride, and one he’s never thought of quitting - until now.

That has sparked fears of what those in retail and logistics call the “2024 crisis”: a critical shortage of truck drivers that, if unaddressed, could leave a third of all cargo undelivered and result in a potential 10 trillion yen hit to the world’s third-largest economy by 2030, by government estimates.

An expected drop-off in the number of truck drivers would set off a domino effect for farmers, shops and diners accustomed to next-day delivery of fresh fish and crisp produce. About 98 per cent of Japan’s 62,000 trucking companies - responsible for delivering almost all of the country’s cargo - are small operations. Fierce competition and high fuel prices mean truck drivers are squeezed too, despite an acute labour shortage.

Six were logistics and delivery majors, including Trancom and Sagawa Express. Both companies promised to make improvements.

 

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