Japan's crackdown on truck driver overtime raises fears of economic breakdown

Apr 07 (investing.com) - Truck driver Yuichi Tomita has been delivering packages all over Japan for two decades, often clocking 40 straight hours on the road. He says the work is tough but a source of pride, and one he's never thought of quitting - until now.

On April 1, 2024, the government will limit truck drivers' annual overtime to 960 hours, among other reforms officials say are meant to improve the job's notoriously gruelling conditions and make it more attractive.

Drivers such as Tomita say the law will instead lead to an exodus from an occupation where most need those extra hours to pay the bills.

That has sparked fears of what those in retail and logistics call the "2024 crisis": a critical shortage of truck drivers that, if unaddressed, could leave a third of all cargo undelivered and result in a potential 10 trillion yen ($76 billion) hit to the world's third-largest economy by 2030, by government estimates.

An expected drop-off in the number of truck drivers would set off a domino effect for farmers, shops and diners accustomed to next-day delivery of fresh fish and crisp produce. ...continue reading

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