Negotiations to raise freight rates between transportation companies and shippers have been underway since new regulations on truck drivers’ overtime work took effect in April, and the Chugoku region is no exception to the trend.
The negotiations come as Japan faces its so-called 2024 problem, under which the nation’s cargo transport capacity is expected to drop due to regulations limiting overtime to 960 hours a year.
Transportation companies are introducing higher fares to secure funds for hiring more drivers and raising the salaries of existing drivers whose working hours have been reduced. At the same time, the increased burden on shippers is leading to hikes to the prices of their products and services.