Domestic freight payload-distance share in Japan FY 2022, by mode of transport
In the fiscal year 2022, motor vehicles accounted for about 55.6 percent of the total payload-distance in domestic freight transportation within Japan. Even though railways dominate domestic passenger transportation in Japan when it comes to accumulated payload-distance, trains fall behind motor vehicles and coastal shipping in cargo transportation.
The first approach targets labor productivity, meaning the amount of output for a given input of labor. Technological advances like automation, artificial intelligence, and also third- and fourth-party logistics are means to ultimately increase the amount of freight a single worker can handle in a given time. Hence, these advances are likely to expand within the logistics system market easing labor demand in the transportation industry.
The second approach, on the other hand, tackles the short supply by further increasing the labor force. The initiative tries to attain this goal by lowering obstacles to this demanding work for potential workers in the Japanese population, namely women and the elderly.
Moreover, the ‘white logistics movement’ initiative hopes to foster a better understanding for these changes to the labor market. Whether these strategies are sufficient to uphold international competitiveness until automation is further developed or demand for transportation services plateaus remains to be seen.
E-commerce exacerbating trucking labor shortages
One reason for the increased demand for road freight transportation in Japan is the emergence of the e-commerce market, which has more than doubled in size since 2012. Therefore, more and more goods get transported directly to the doorsteps of consumers. This last step is still especially highly labor-intensive, oftentimes requiring redeliveries. Regular employees of the freight transportation industry work on average more hours than any other sector of the transportation industry. Despite increased earnings and a growing workforce, the supply of labor needed to maintain low-priced e-commerce and the domestic market overall remains threatened due to rapidly aging drivers.The ‘white logistics movement’: approaches to mitigate logistics costs
The Japanese government responded to this problem, among others, with the creation of the 'white logistics movement'. This initiative has two aims. Firstly, improving the transportation industry's productivity. Secondly, creating working conditions that encourage women and the elderly to work as truck drivers.The first approach targets labor productivity, meaning the amount of output for a given input of labor. Technological advances like automation, artificial intelligence, and also third- and fourth-party logistics are means to ultimately increase the amount of freight a single worker can handle in a given time. Hence, these advances are likely to expand within the logistics system market easing labor demand in the transportation industry.
The second approach, on the other hand, tackles the short supply by further increasing the labor force. The initiative tries to attain this goal by lowering obstacles to this demanding work for potential workers in the Japanese population, namely women and the elderly.
Moreover, the ‘white logistics movement’ initiative hopes to foster a better understanding for these changes to the labor market. Whether these strategies are sufficient to uphold international competitiveness until automation is further developed or demand for transportation services plateaus remains to be seen.
