Chapter 5 New Developments in Physical Distribution


1. Approach to Needs of Sophisticated and Diversifying Physical Distribution


    Demand for the sophistication of physical distribution services, including "just-in-time services," has led to an increasing dependency on trucks in the domestic freight transport field (trucks accounted for 51.2 percent of physical distribution services in FY1989). The result has been the development of social problems such as labor shortages, traffic congestion and global warming (Fig. 27). In particular, Labor shortages are becoming increasingly acute for trucking businesses. In FY1988, for example, the number of drivers per truck serving a scheduled delivery route stood at 0.86 in six major cities. With respect to prevailing labor shortages in the trucking industry, Long working hours (2,687 hours in 1988 compared to 2,111 hours in all categories of industry) and excessively heavy loading have become social problems. Viewed in medium and long-term perspectives, there is the possibility of the situation gravely affecting the nation's economic and industrial activities, and national life, hence an improvement in the situation has become an urgent matter.
    The government, therefore, will take steps to promote the utilization of mass transport systems (railways and shipping) and to improve infrastructures in a move to accelerate modal shifts (shifts from trucks to railways and shipping in freight transport services on trunk routes) on the basis of intermodal transportation with trucks.
    There is also a need to promote the greater modernization of physical distribution facilities in and around ports and harbors, and airports to deal with a larger influx of imported goods, and to build, at the same time, comprehensive import terminals complete with distribution control and quarantine facilities, and consumer-oriented functions.
    In the area of consumer physical distribution, efforts are now being made to introduce fullfledged measures for the protection of consumers, including an improvement in the standard terms and conditions contract of carriage in regard to door-to-door delivery and house-moving services, in addition to forging ahead with trunk room services, freight villa and document villa projects.
    With respect to measures for international intermodal transportation, in addition to disseminating standard terms and conditions contract of carriage, the Intermodal Transportation Committee of the Distribution Subcommittee of the Council for Trans-port Policy, the Ministry of Transport in February 1990 compiled plans to pave the way toward the promotion of intermodal transportation.


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