The Japanese government plans to work with domestic firms to test new international supply routes as soon as March, as it aims to diversify freight options in response to recent supply chain instability highlighted by the coronavirus pandemic and the war in Ukraine.
With international events causing delays and a rise in transport costs, the Ministry of Land, Infrastructure, Transport and Tourism intends to ensure a reliable freight system by preparing alternative shipping and train links to reach the United States and Europe.
Delays in international freight can lead to shortages in raw materials and goods, and rising costs of transporting the items can also push up prices on many commonly-used products. Among the areas the transport ministry will be investigating under the scheme are cost, time and customs clearance issues.
Until the end of February, the ministry is recruiting Japanese companies including cargo firms and logistics businesses to participate in testing deliveries with government backing of 1 million yen ($7,800) per consignment. A report on its activities is intended to be made around the fall.
Although disruption to the international freight system is easing, the transport ministry maintains it is “important to secure complementary replacement routes in case of emergencies.”
Source: Kyodo News
