Tokyo: The Japanese government Friday approved a plan to streamline logistics services by fiscal 2030, including a target of raising truck driver wages by 10% in fiscal 2024.

The medium- to long-term plan was put together to tackle the so-called 2024 problem, or a further shortage of truck drivers that may arise from new overtime regulations coming into effect in April.

It also called for reducing the times for drivers to load and unload goods and wait for their turn to do the work by 125 hours annually per truck driver.

Through the plan, the government hopes to reduce the burden on truck drivers while maintaining the country’s freight transportation capacity.

On Friday, Prime Minister Fumio Kishida exchanged views with logistics industry leaders and others on improving logistics efficiency and wage hikes for truck drivers.

“The government, shipping consignors and logistics companies will work as one to do their utmost to achieve sustainable growth of our nation’s logistics,” Kishida said.

“It is necessary to raise wages significantly at small and midsize businesses involved in logistics by allowing them to properly reflect their labor and other costs in their service prices,” he also said.

To improve driver wages, the transport ministry plans to raise by an average 8% the standard fares it sets under the motor truck transportation business law.

The plan also included measures to allow trucking service operators to pass their costs on to clients properly so that they will find it easier to raise driver wages.

Regarding low truck capacity usage rates, the plan included a target of raising the average rate to 44% from 38% in 2019. The government will also promote joint goods transportation operations by logistics companies.

The government estimates that the country will face a 34% shortage in the trucking industry’s transportation capacity in fiscal 2030 if the situation remains unchanged.

Earlier this month, the government submitted to the Diet, the country’s parliament, a bill to require logistics companies and shipping consignors including freight owners to draw up plans to cut the loading and unloading wait times for truck drivers.

JIJI Press