[Logistics from 2028 onwards (4)] From standard freight rates to appropriate costs No.0022

Currently, as a benchmark for truck charter freight rates, there is something called
the 'Standard Freight Rate'. Are you aware of it?

Do you know about it?

I am sure transport companies know about it, but shippers might not.

If I were to represent the general perception of standard freight rates held by the majority of transport companies in the world,

That is often the feeling on the ground.

The standard freight rate was established by the amendment of the Motor Truck Transportation Business Act in April 2018 and was first publicly notified in April 2020.

In response to rising prices and fuel costs, the freight rate level was increased by approximately 8% in March 2024, and it has been in effect since June of the same year.

While based on the Ministry of Land, Infrastructure, Transport and Tourism notification,

'By Transport Bureau unit (Tohoku, Kanto, Chubu...)'

it is operated by preparing freight rate tables (distance-based/time-based) that take regional circumstances into account.

Please compare it with your current freight rates.

As of May 2026, the standard freight rates are, for example, roughly:

• 4t truck Nagoya to Tokyo: approx. 90,000 yen

• 10t truck Nagoya to Tokyo: approx. 120,000 yen

This is the level.

*Expressway tolls, etc., are required separately.

What about you, the shippers?

How many shippers are currently paying freight rates close to this level?

In reality, I think there are large differences depending on the industry, cargo volume, and region.

However, based on my personal experience, looking at the country as a whole,

I believe that only about 10% of shippers are paying freight rates close to this level.

I do not know how long standard freight rates will exist after appropriate costs are officially announced,

but what was originally intended as a "temporary measure" until the end of March 2024 has been changed to a "measure for the time being."

Therefore, it may disappear with the introduction of appropriate costs.

However, it is currently unclear whether it will be abolished immediately or if there will be a period of coexistence.

Until now, standard freight rates have served as a benchmark for freight charges, and were positioned more as an ideal to aim for.

Once appropriate costs are fully implemented as a system, I believe they will be strongly recognized as the new benchmark for freight rates.

This is because it is highly likely that the concept will shift toward
appropriate costs being the 'effective minimum line'.

If the shipper's dynamic of "wanting to transport as cheaply as possible" continues to apply in the future,

as a result, I believe
"around the appropriate cost" will become the new market price range.

[Here is a summary of appropriate costs]

• Based on actual transportation costs, the government will announce 'appropriate costs (cost models)'

• Transactions at freight rates and charges that continuously fall below the appropriate costs will be legally restricted in the future

(In other words, shippers cannot pay less than the appropriate cost and transport companies will only be able to accept orders at or above the appropriate cost.)

• Legally, it is stated that it will be "enforced within 3 years of promulgation," and in practical terms, enforcement from the spring of 2028 (around April) is considered likely

• As of May 2026, the specific level of appropriate costs has not yet been announced

• (My assessment) To meet the spring 2028 enforcement deadline, it is thought that the 'draft of appropriate costs' will be presented within fiscal year 2027 at the latest

• Regarding transactions at freight rates below the appropriate cost, the direction is for legal responsibility to be placed on the shipper side as well as the transport operator

This article was intended to help you understand standard freight rates and appropriate costs.

The impact of appropriate costs will be covered in the next article.

How seriously you take this impact,
and how quickly you start taking countermeasures,

are things that I believe are extremely important.

I think that is very important.

I will continue to publish the Logistics 2028 Problem series.
I will continue to share information on this in the future.
Click here for my thoughts on logistics from 2028 onwards👇👇👇

Thank you
for reading to the end.😄

Although it hasn't become big news yet, the implementation of appropriate costs is a decided matter.
Information like this, broken down into easy-to-understand terms for the field level,
is hard to find even if you look for it.
Therefore, through this article,
I want many people to know about it!

Please 'follow' and
keep checking back.🙇
'❤️ like' gives me motivation.😆
If you have any questions or queries,
feel free to 'comment' below.✏️

I am accepting questions

If you have any questions or concerns regarding the logistics and transportation industry, please feel free to send them in.

• Appropriate costs and consigned freight forwarding

• Actual transportation system management ledger

• Concerns of shippers and transport companies, etc.

Questions can be sent anonymously.
Answers may be introduced in the question box, note articles, or on YouTube.

▶ Click here for questions
https://note.com/qa/tg_connect_jp