On January 14, the Transport Digital Business Council (TDBC) held a discussion with three mid-sized truck transport business managers on the theme of "What to do about freight rates? – Between standard freight rates and appropriate costs."
<Scenes from the conversation>
In the discussion, three individuals—Takayuki Heihata, president of Seiryo Line; Hirokazu Hishiki, president of Hishiki Transport; and Kotaro Matsuura, president of Matsuura Transport—reported on the use of standard freight rates and other related topics.
<President Heiki>
President Heihata explained that when negotiating freight rates with shippers, he often encounters situations where they say, "We raised rates last year, and now you're coming to negotiate again this year?", and that they have not yet been able to secure standard freight rates. He acknowledged that this is due to the fact that other trucking companies in the same industry are keeping rates low, and emphasized that, with truck vehicle prices and labor costs soaring, "not negotiating for a price increase is tantamount to abandoning the continuation of the business."
<President Hishiki>
President Hishiki initially felt that the standard freight rates were high and thought it would be difficult to accept them. However, he changed his mindset, realizing that "negotiating freight rates is essential to make the necessary investments and continue the business." He reported that this led to an increase in shippers understanding the situation, and he indicated that by approaching negotiations with a firm resolve, shippers may also come to understand the necessity of price increases.
<President Mawatari>
President Mawatari stated that while shippers' awareness of standard freight rates has increased and collection levels have risen, the fact that handling operations not included in contracts have become commonplace in warehouses and other facilities means that further efforts are needed to promote the principle of "receiving and delivering on board."
