April 2011

Standard Truck Market Trends Summary of Results of JAMA's Fiscal 2010 Survey

The Japan Automobile Manufacturers Association has released the results of its standard truck market survey conducted in fiscal 2010 (ending March 31, 2011).

This survey is conducted once every two years to monitor shifts in the demand structure for standard trucks by tracking periods of ownership, purchases, patterns of use, and changes in transport needs.  The latest survey also looked into the impact on users of new or revised laws and ordinances pertaining to trucks and of new developments in the distribution sector.

Specifically, the 2010 survey sought to determine the extent of:
(1) The impact of the economic downturn on users and their intentions with respect to future truck ownership;
(2)  Awareness of and response to environmental issues;
(3) Safety measures implementation and potential demand for advanced onboard safety features/equipment; and
(4) The impact on and outlook for road freight transport in view of the significant reductions in expressway tolls.

Survey results highlighted the following trends:

  • In a difficult business environment, a decline in the average rate of ownership (in units) and longer periods of such ownership.
  • Notwithstanding signs of a small upturn in the business climate, a harsh outlook for standard truck ownership.
  • No significant changes in average truck-loading and deadheading rates.  With declining freight volumes, the adoption of other streamlining measures by carriers.
  • Widespread awareness of Japan’s latest heavy-duty diesel vehicle emissions regulations, and advances in vehicle environmental performance reinforced by the adoption of ecodriving.
  • Driver sobriety checks prior to vehicle operation are the most prevalent road accident prevention measure implemented by freight carriers; about 60% of survey respondents reported having introduced alcohol-detection devices at their facilities.    
  • Increased nighttime use of expressways by about 20% of the freight-carrier respondents; concerns over the accuracy of delivery schedule projections and the impact of longer work hours on drivers.

Reference

JAMA’s Fiscal 2010 Survey of Standard Truck Market Trends
Survey Implementation Outline and Results

1.  Survey Implementation Outline

Survey type User survey
Survey area Nationwide
Survey medium Postal mail
Survey targets Freight carriers owning standard trucks for use in their carrier operations Enterprises owning standard trucks for use in their operations in the construction, manufacturing, wholesaling/
retailing, waste treatment and other sectors
Valid responses 858 444
Survey period Late August to early October 2010

2.  Survey Results

2.1 Demand status: In a difficult business environment, a decline in the average rate of ownership (in units) and longer periods of such ownership.

  • Despite a rise in demand for new standard trucks beginning in 2009 and continuing through 2010, most likely attributable to the application of tax incentives and subsidies for the purchase of eco-friendly models, this growth was preceded by two years of plummeting demand.  Underscoring that trend, the overall average per-company rate of standard truck ownership (in units) has been in a steady decline since 2000.
  • For freight carriers, the average rate of standard truck ownership (currently 10.9 units) has been in continuous decline since 2006.
  • The average duration of truck ownership is 10.6 years, maintaining the trend in longer ownership periods that marked most of the previous decade.

2.2 Business climate perceptions and ownership projections: Notwithstanding signs of a small upturn in the business climate, a harsh outlook for standard truck ownership.

  • In contrast to the results of the 2008 survey, which reflected a plunge in business confidence under the combined impact of the global financial crisis and soaring fuel prices, many respondents reported an “upturn” in business sentiment, underscoring some sense of recovery in the general business climate.  This positive sentiment was particularly strong among comparatively large-scale freight carriers (those with 100 employees or more).  Nevertheless, about 60% of all respondents indicated a “downturn” in business sentiment.
  • Although the percentage of respondents who reported an increase in unit ownership remained basically unchanged from the 2008 survey, a greater percentage (33%, compared to 29% in 2008) reported a decrease.  Similarly, about 40% of all respondents indicated that their rate of standard truck ownership (in units) is likely to be lower in five years (i.e., 2015) compared to the current rate.

2.3 Status of truck operations and related factors: No significant changes in average truck-loading and deadheading rates.  With declining freight volumes, the adoption of other streamlining measures by carriers.

  • The average truck-loading rate remained low at 86.3%, the same rate recorded in the 2008 survey.  The deadheading rate, at 34%, was also basically the same as in 2008.
  • Roughly 60% of survey respondents reported a decline in freight volumes handled compared to 2008, with the number of carrier-hiring customers also showing a decline.
  • A majority of the respondents—in other words, more than in the 2008 survey—indicated that freight transport charges to customers were lower than they were in 2005.
  • Issues for freight-carrier respondents included higher fuel prices (69%), difficulties in raising freight transport charges (41%), and demands from customers for lower freight transport charges (39%).
  • Survey results confirmed a continued rise in the frequency of carrier-hiring customers and original contractors stipulating vehicle specifications (tonnage category) when hiring a carrier. 
  • With carrier-hiring customers becoming increasingly demanding in regard to vehicle-hiring costs, freight carriers are moving to streamline their operations and cut their own costs by delaying vehicle replacement purchases, extending rates of vehicle operation, and shifting to larger or smaller vehicles as necessary for optimal efficiency, among other measures.

2.4 Awareness of and response to environmental issues: Widespread awareness of the latest heavy-duty diesel vehicle emissions regulations, and advances in vehicle environmental performance reinforced by the adoption of ecodriving.

  • Of the freight-carrier respondents, 23% reported having already purchased new trucks that are compliant with the latest (“post-new long-term”) emissions regulations.  Among non-carrier truck owners, on the other hand, awareness of the regulations was low, with about one-third admitting no knowledge of them whatsoever.  In terms of the impact of these regulations, the most common response noted in this survey was the intention to continue to operate in-use trucks for as long as legally possible.  (Note: The post-new long-term emissions regulations become mandatory for all heavy-duty diesel vehicles in use beginning in September 2011.)  
  • A large number of respondents reported that they are promoting the adoption of ecodriving in their fleet operations to increase fuel efficiency and thereby reduce CO2 emissions, and freight carriers are stepping up efforts to introduce digital tachographs and other fuel efficiency-enhancing equipment onboard their trucks.
  • With the wider practice of ecodriving, an increasing number of freight carrier-owned trucks that frequently use expressways travel on those roads at speeds in the 70-to-79 km/h range.   
  • The larger the truck-owning operation, the greater the likelihood of its having purchased standard trucks while the subsidies for eco-friendly new vehicle purchases were in effect (April 2009-September 2010), with 44% of operators owning 30 or more trucks indicating they had done so.

2.5 Safety measures implementation: Driver sobriety checks prior to vehicle operation are the most prevalent road accident prevention measure implemented by freight carriers; about 60% of survey respondents reported having introduced alcohol-detection devices at their facilities.

  • In line with Japan’s newly strengthened penalties for drunk driving, driver sobriety checks are now the number-one road accident prevention measure implemented by freight carriers.  A large majority of respondents (70%) also cited the adoption of “attention to driver health” practices and face-to-face on-duty reporting.
  • A larger number of respondents than in 2008 confirmed the current use in their vehicles of driver-support equipment such as back-up monitoring cameras, digital tachographs, event data recorders, and adaptive cruise control; also noted was the intention to use safety equipment (event data recorders, rearward-approaching-vehicle warning and collision-mitigation braking systems, etc.).    
  • A majority (65%) of freight-carrier respondents reported using alcohol-detection devices (simplified types, primarily).  Although the use of alcohol-detection devices becomes mandatory from April 2011, survey results did not provide a clear picture of possible purchasing trends (i.e., preferred types of devices) in this regard.        
  • Tractor-trailer rollover accidents are a risk of which some 90% of all respondents were aware.

2.6 Status of expressway use: Increased nighttime use of expressways by about 20% of the freight-carrier respondents; concerns over the accuracy of delivery schedule projections and the impact of longer work hours on drivers.

  • A majority of survey respondents reported no change in expressway use patterns following the introduction of expressway toll discounts on weekends and national holidays.  Freight-carrier respondents cited more frequent nighttime use of expressways (20%) and/or greater use of regular, i.e. non-toll, roads (10%).
  • Issues arising from the introduction of expressway toll discounts and the resulting road congestion included concerns over the accuracy of delivery schedule projections and the impact on drivers of longer work hours.
  • Electronic toll collection (ETC) has become very widely adopted in this market segment, with about 90% of standard trucks operated by expressway-using freight carriers now being equipped with an onboard ETC device.

BackBack