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Glossary

Japan's "2024 problem"

The year 2024 marks a critical turning point for Japan's logistics industry due to the full implementation of revised labor laws. While these regulations were introduced in 2019 to improve working conditions and limit overtime, the trucking industry was granted a grace period to adjust. This grace period ended in April 2024, when stricter limits on overtime hours for truck drivers came into full effect. This is expected to create a significant labor shortage and disrupt supply chains, hence the term "2024 problem."

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This shortage disrupts supply chains across various industries, causing delays in the delivery of goods and potentially affecting consumers through higher prices and reduced product availability. The problem extends beyond the logistics sector, with potential impacts on manufacturing, retail, construction, and other industries reliant on timely transportation. 

Japan's 2024 problem, however, became a significant driver of modal shift, which tended to be delayed compared to other continents, such as Europe. The impending driver shortage in Japan is pushing businesses to explore alternative transportation methods like rail and shipping, accelerating the transition towards a more balanced and sustainable logistics system.

Some of the major Japanese companies in the same industry are starting to collaborate on logistics. For example, in the beverage industry, where there is a need to efficiently transport large quantities of products from factories, major companies, including Coca-Cola Japan, have decided to cooperate with each other.