KUALA LUMPUR - Japan’s logistics industry is ramping up recruitment of foreign truck drivers as companies struggle with a severe manpower shortage driven by a shrinking population and tighter overtime regulations.

Nakano Shokai, a mid-sized firm under Yamato Holdings, has had to reject up to 10 delivery requests daily at its Atsugi office in Kanagawa due to a shortage of 10 drivers.

“The driver shortage has become more pronounced over the past year and a half,” said an executive at the company.

Nomura Research Institute estimated that the number of truck drivers fell from 820,000 in fiscal 2000 to 660,000 in fiscal 2020, and warned of a shortfall of 270,000 drivers by fiscal 2030, which could leave 36% of packages undelivered.

A survey by the Ministry of Economy, Trade and Industry found that 10% of about 2,300 companies seeking shipment services had their orders rejected.

The shortage has worsened after stricter overtime rules meant that “two drivers are now needed to transport loads between Osaka and Kyushu, which previously required one driver,” said the president of Futaba Transportation.

To address the crunch, the government plans to accept 22,100 foreign workers in the automobile transport sector by March 2029 under the specified skilled worker programme.

Nakano Shokai has begun hiring Vietnamese drivers under the programme, recruiting three so far and offering jobs to 20 more.

Yamato Transport plans to hire up to 500 Vietnamese drivers over five years from 2027, while SBS Holdings aims for foreigners to make up 30% of its drivers within a decade, including 1,800 recruits from Indonesia and other countries.

Other firms, including Seino Transportation and Nippon Express, are also preparing to bring in more foreign drivers to meet demand.

SBS President, Masahiko Kamata said the company is already short of 300 drivers and warned that the shortage will continue to grow as it expands its business.

However, hiring foreign drivers has become more challenging after the government tightened driving tests in October, causing the pass rate to drop from over 90% to below 10% following several accidents.

Companies are stepping up training, with Nakano Shokai producing guidebooks and safety lessons, including reminders that horns should only be used in dangerous situations and that pedestrians and oncoming vehicles have priority.

SBS also plans to train foreign recruits at its own driving school and may require some to obtain full Japanese licences to ensure safety.

“Once an accident occurs, the company will be held responsible," Kamata said. We must ensure safety,” he said.

Consultancy firm Funai Soken Holdings has advised companies to support foreign workers by regularly checking on their family, hobbies and salary expectations to prevent them from leaving.

Despite the recruitment drive, even 22,100 foreign drivers would account for less than 10% of the projected 270,000-driver shortfall by 2030.

In the long term, experts say hiring foreigners alone will not solve the problem, and that "it's important to combine measures to improve efficiency, like introducing self-driving vehicles and platooning," said an associate professor at Keiai University.