Japanese Long-Distance Ferries Back in Demand

July 4, 2018

Tokyo- Long-distance ferries in Japan are showing signs of a comeback after struggling for years, backed by a recovery in cargo shipping demand reflecting work style reforms in the trucking industry.

Also seeing growing demand for cruising from foreign tourists, some ferry companies, keen to capture the golden opportunities, have introduced larger ships and taken steps to improve their services.

According to the Japan Long Course Ferry Service Association, long-distance ferries that travel at least 300 kilometers each way are operated by eight member companies on 14 routes.

The industry saw its market shrink for a long time due to the development of expressway networks across Japan and surges in crude oil prices.

However, a gradual shift of freighting means is under way from trucking to railway transportation and shipping, on the back of driver shortages and efforts to tackle the problem of long working hours for truck drivers.

"We often have to refuse reservations," said an official of Meimon Taiyo Ferry Co., based in the western city of Osaka.

The company runs two ferry services a day on a route between Osaka and the southwestern city of Kitakyushu.

It introduced two large ships in 2015 to replace existing ones, due to the aging of its fleet and an increase in cargo shipping demand.

As a result, the fleet's capacity to transport trucks expanded by 30 pct. In addition, 60 new private cabins became available for use by truck drivers.

Travel from Osaka to Kitakyushu by sea take twice the time required for driving on expressways. But Meimon Taiyo Ferry's cargo ferry services are operating at nearly 90 pct of capacity.

Ferry Sunflower Ltd., which has a route linking Osaka and the southwestern city of Shibushi, replaced a ferry with a large one in May this year.

The new vessel features facilities for truck drivers as well as a variety of shipboard events and foods general passengers may find attractive.

"We hope our customers will enjoy their trips by sea, rather than boarding ships merely as a means of transportation," a Ferry Sunflower official said.

The company is trying to attract foreign tourists as the 2019 Rugby World Cup is approaching. In addition, Osaka may win its bid for the 2025 World Exposition.

Industry watchers say, however, that a bright future is not necessarily guaranteed for the operators of long-distance ferries.

Upgrading fleets requires massive costs, and the industry suffers increasing personnel shortages.

Another headache is environmental regulations on shipping fuel set to hit the industry in 2020.

"We may lose customers if we raise fares," an industry official said. Jiji Press