Japan's Logistics Crisis
Japan's logistics crisis refers to the severe challenges facing the nation's supply chain, primarily driven by the "2024 Problem."
This is a direct consequence of new regulations that cap overtime hours for truck drivers. While intended to improve working conditions, this policy exacerbates Japan's existing labor shortage within a rapidly aging workforce. The result is a potential for higher transportation costs, reduced delivery capacity, and widespread supply chain disruptions, with significant implications not only for Japan's domestic economy but also for regional trade networks.
Daiwa Steel Tube Industries (DSTI), the Japanese founding company of o2Oh, is also seriously addressing these issues. While Japan's land area is smaller compared to countries like the United States, it is long from north to south, spanning 3,000 kilometers. This distance is comparable to the distance between Toronto, Canada and Mexico City, Mexico (approx. 3,200 km) or Kyiv, Ukraine and Madrid, Spain (approx. 2,800 km).
To efficiently deliver goods nationwide, DSTI has divided this long country into five sales offices, with each location having its own inventory warehouse. We also utilize a private fleet, a form of transport where the shipper owns its own trucks and handles logistics in-house.