Since 90% of goods are transported by road, these policies are seriously affecting Japan's logistics industry, which is vital for the nation's economy even if they are meant to lower the physical and psychological toll on drivers and appeal more to younger people.

A 59-year-old truck driver with years of experience, Fujio Uemura represents the challenges drivers under the new rules encounter. Often driving great distances from southern Japan to Tokyo, Uemura acknowledges that in the past he would drive as long as he could before stopping to overcome tiredness. He can no longer work the long hours he used, though, with the new overtime limitations and break rules. Though the life of a truck driver has long been regarded as challenging and unpleasant, with irregular hours contributing to high rates of heart disease and strokes, for Uemura and many others the prolonged hours were a means to boost their income.

Though its importance in the fourth-largest country in the world, trucking ranks somewhat low in Japan's economic order. With an annual pay of about 4.5 million yen ($30,000), truck drivers work 20% longer than the ordinary worker yet earn 10% less. Many truckers put in sixty hours or more a week. Moreover, the sector consists mostly of tiny firms; 63,000 trucking companies run in Japan most of which have less than ten cars. These companies were struggling even before the new regulations, frequently lowering costs or providing free loading and unloading services simply to survive.

The new rules have escalated these difficulties. Reducing working hours for drivers eventually results in employment loss, which causes undelivery of goods and supply chain delays. Senior official Haruhiko Hoshino of the Japan Trucking Association called the situation serious and warned that if the problems are not resolved Japan would have a 34% gap in domestic cargo movement by 2030. Already, fresh food arriving late to markets and claims of airports struggling to secure aviation fuel have surfaced.

Aware of the developing dilemma, the administration has categorized it as the "2024 Problem," and it is pushing reforms. Tetsuo Saito, the minister of transportation, underlined lately the need of tackling the logistical congestion. Companies have responded by beginning hitherto unheard-of cooperative efforts—sharing vehicles, standardizing containers, and even creating alliances to handle capacity problems. For example, dairy firms have teamed together to expedite their delivery systems. Still, even with these initiatives, the answer might call for more than just industry tweaks.

One of the government's suggested remedies is for corporations to cease pressuring trucking companies for discounts and freebies. Nonetheless, the best answer is for consumers to pay more, claims Ryutsu Keizai University professor Hiroaki Oshima. He contends that sustaining an efficient and healthy logistics system falls on society, including consumers and companies, bearing extra costs. For Shigeru Ishiba, the new Prime Minister of Japan who assumed office following the October 27 elections, this poses a possible obstacle. Rising inflation, which reduced household wages, helped his predecessor, Fumio Kishida, lose appeal in some measure. Further price increases on commodities resulting from higher transportation costs could put similar strain on Ishiba's government.

For drivers like Uemura, the reality of the new rules is already being experienced. Currently sending several drivers to handle various stages of the delivery process, his company, Portline Service, pays an extra 1.3 million yen ($8,750) monthly. Notwithstanding these obstacles, Uemura is committed to his work; even his son entered the trucking business after quitting a career in shipbuilding. Uemura cautions him, though, that the field is not one that lends much downtime. Although Japan's trucking industry's future is yet unknown, changes and a society ready to bear higher expenses will be crucial in guiding this catastrophe.

Japan: New Regulations Push Trucking Industry to the Brink

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