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Geopolitical issues and COVID push Japan to try alternative routes

Amid the fragility of the global supply chain, Japan will try new freight routes.

Geopolitical issues and COVID push Japan to try alternative routes - Supply Chain Tribe by Celerity

In reaction to recent supply chain instability highlighted by the coronavirus epidemic and the crisis in Ukraine, the Japanese government intends to engage with domestic businesses to explore alternative foreign supply channels as early as March.

The Ministry of Land, Infrastructure, Transport and Tourism wants to secure a stable freight system by setting up alternative train and maritime routes to reach North America and Europe since international events are increasing travel times and expenses.

Delays in international freight can cause a lack of commodities and raw resources, and increased transportation costs can drive up the price of many everyday things. Cost, time, and customs clearance concerns are just a few of the topics the transport ministry will be looking into as part of the programme.

The ministry is seeking Japanese logistics and freight companies to take part in testing deliveries with government funding of 1 million yen each consignment through the end of February. It plans to release a report on its efforts around the fall.

The utilisation of ports in Canada, Mexico, and the east coast of the United States instead of the U.S. west coast, where ships were unable to unload their cargo during the coronavirus epidemic owing to a lack of truck drivers, is one of the alternate routes proposed.