Japan Freight Transport and Shipping Report Q3 2017
BMI View: Japan is actively working towards improving its global trade ties in the aftermath of the demiseof the Trans-Pacific Partnership. Japan is reaching closer towards a historic free trade agreement with theEU. We note that elevated trade regulatory activity will be noticeable over the foreseeable future. TheJapanese freight and shipping sector is poised to see modest growth over the course of 2017, fuelled bymodest domestic demand growth and a robust manufacturing and export sector that capitalizes on Japan'scomparative advantages. We highlight steady growth in Japanese trade levels and an uptick across allmajor freight modes out to 2021. Rail is set to be the outperforming mode, and we expect domestic demandfor rail to rise higher than all others, supported by government initiatives to encourage rail cargo freight.
The road freight sector is saturated and we anticipate only a fractional level of annual growth. The nationalocean shipping sector will benefit from strong auto exports and the agricultural imports in the country, bothof which remain elevated.