Logistics companies concern themselves with supply chains, linking industries and consumers with materials and goods. Japan, as one of the economic powerhouses in East Asia, depends on a strong logistics industry, notably because of its large manufacturing industry and the resulting demand for the storage and distribution of goods. Therefore, shipping companies like Yamato Holdings are among
. Japan handled
Prominent modes of freight transportation
Trucking and coastwise shipping are the Japanese logistics industry’s
dominant modes of transportation, as logistics facilities, warehouses, and factories favorably access arterial roads and major ports. While gravel, food, and mixed-loads are some of the principal freight carried by trucks,
coastwise shipping cargo is mainly constituted of industrial goods, fuels, and construction materials. Due to its geography, Japan has limited use for railways in logistics: trucks are the convenient terminal transport mode, while ships are mostly used for larger distances for durable bulk commodities, and the little cargo that needs to arrive as quickly as possible over wide distances is carried via airplanes.
Solutions for mitigating logistics costs
Fierce competition is a defining characteristic of the logistics industry. Logistics providers have started optimizing their business by outsourcing specific parts of their services to third party service providers (‘third-party logistics’ or ‘3PL’).
Furthermore, automation and artificial intelligence (AI) are means to cut costs. These technological solutions will likely expand within
the logistics system market. Though automated warehouses are already in operation, fully-autonomous trucks still need some time until they will hit the roads. For Japan,
developments in automation cannot come soon enough. Its logistics industry is suffering from cronic labor shortages. One reason for this is the long working hours compared to other industries, and the relatively low wage received, making the logistics industry unattractive, especially for the younger worker generations. One of the responses to this problem by the government was founding the 'white logistics movement'. This initiative has two aims: Improving the trucking industry's productivity and creating working conditions that encourage women and the elderly to work as truck drivers. Whether this strategy sufficiently stabilizes the industry until automation has further developed remains to be seen.
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