Japan's ANA to slash cargo rates, making air on par with trucking

All Nippon Airways parent ANA Holdings will cut daytime air cargo rates to as low as one-tenth of current levels, bringing them in line with trucking costs as it seeks to tap shipping demand stemming from an expected driver shortage. The new rates will be introduced from April 1 on flights connecting Tokyo's Haneda to Sapporo, Fukuoka and Osaka that depart between 10 a.m. and 5 p.m. ANA Holdings expects demand from a wide range of fields, from agriculture and fisheries to manufacturing. Japan is bracing for a serious driver crunch starting next month, when overtime work for truck drivers will be capped at 960 hours per year. Nomura Research Institute estimates that by 2030, 35% of the country's cargo will not be able to be transported. One solution is a shift to rail or sea transport. But air cargo is more expensive than other means and currently accounts for less than 1% of domestic cargo transport based on weight. The service will be made available online to individuals in addition to business customers. This is the first time a Japanese company has introduced time-of-day rates for cargo shipping. The rate for transport between Haneda and Fukuoka on the southern main island of Kyushu will be 20,000 yen ($132) per container, which can hold up to one tonne, compared to the usual price of about 200,000 yen. Even when adding the cost of transporting the cargo to and from the airports, the rate is still comparable to truck transport, according to the company. <br/>