Logistics & Freight

At the same time, the rapid expansion of Business-to-Consumer (B2C) e-commerce continues to reshape the sector. Japan’s B2C e-commerce market, now valued at over ¥22 trillion (approx. €140 billion), has seen consistent annual growth, driven by changing consumer habits and digital adoption. This trend puts additional pressure on both domestic and international logistics providers, who must adapt to higher expectations around speed, transparency, and cost-efficiency.

Given these pressures, it is critical that the Japanese Government ensures the efficient and reliable flow of goods—whether medical supplies, industrial components, or consumer products—by promoting policy alignment with international standards. Harmonisation of customs procedures and continued access to open ports and airports are vital. Clear and coordinated regulatory frameworks between Japan and its trading partners will help reduce friction, support businesses, and enable smoother trade flows.

European logistics and freight companies, through their global networks, provide significant value to Japanese consumers and businesses. As cross-border e-commerce volumes continue to rise, it is evident that Japan’s regulatory and physical infrastructure must evolve to keep pace. Ongoing issues include a high cost base, aging and congested port infrastructure, inconsistent customs practices, and restrictions on foreign-owned companies in the domestic freight forwarding market. Furthermore, uneven application of regulations across similar service providers has led to inefficiencies and higher costs for end users.

The EBC welcomes recent steps taken by the Japanese Government, particularly in digital customs modernisation and trade facilitation. However, to transform Japan into a competitive and attractive logistics hub, further systemic reforms are required. This includes embracing stakeholder input, aligning domestic regulations with international norms, and investing in infrastructure modernisation.

The introduction of Japan’s Authorised Economic Operator (AEO) programme was expected to reduce administrative burdens and improve customs efficiency. However, many companies report that instead of simplifying procedures, the system has introduced additional compliance requirements. The EBC believes that a review and revision of the AEO framework is needed, with the aim of giving approved operators more flexibility while at the same time also taking more responsibility.

Finally, although the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has made some progress in business infrastructure reform, further efforts are needed to address inefficiencies in Japan’s port system. Port development remains overly fragmented, often led by local authorities rather than coordinated through a national strategy. As a result, Japan continues to lose competitiveness in the region.