Japan to look at new freight routes amidst global supply chain uncertainty

The Japanese govt. is planning to test new international supply routes by expanding more freight options in partnership with domestic firms. This new plan is to overcome the stability that has occurred due:

• Coronavirus pandemic
• Ukraine war
• Strikes by unions for more pay in Europe
• Risk of blockage from conflicts at the Indian Ocean and Suez Canal supply lines.

The international delays are causing multiple issues such as shortages in raw materials and goods, and a rise in transportation costs which is escalating the price of commonly used products.

The alternative shipping links will help easy access to the US for a reliable freight system and also reduce transportation costs. Other areas where the govt. will spend time investigating is customs clearance, turnaround time and costs.

Even though international freight is stabilizing, the transport ministry is still looking for alternative routes for emergencies. Among the alternative routes, Japan is planning to use the ports in Canada, Mexico, and the east coast of the United States in place of the west coast. The transport ministry of Japan is re-considering routes leaving regional ports on the Sea of Japan side that would then take rail and sea routes via central Asia, turkey, china, and the Caspian Sea.

To do this, the Government is recruiting cargo firms and logistics companies to test deliveries with the government. backing of 1 million yen per consignment. Currently, very few Japanese companies use the routes, which adds to the cost and time issues. However, the transport ministry is planning to investigate to check what improvements can be made on the new routes for a successful transport.