A survey shows that more than half of Japan's truck transportation companies are losing money. It also indicates that rising costs are having especially harsh effects on small operators.
The Japan Trucking Association looked at the fiscal 2022 earnings reports of 2,558 companies out of its roughly 50,000 member firms. 57 percent of those surveyed posted losses in their transportation business.
There was a general trend for the smaller the company, the worse its financial health.
Larger firms had the highest ratios of operating profits to sales. The average figure for those with more than 100 trucks was 1.7 percent.
The rate fell for operators with 11 to 20 vehicles to minus 1.2 percent. The figure for firms with 10 or fewer was minus 3.6 percent. This group saw its 26th straight year of losses.
The association says three-quarters of operators in the industry have no more than 20 trucks. It says these smaller companies are struggling the most to pass on higher fuel costs and other expenses to customers.