Development of the Global Logistics Network and its Impact on the Logistics Industry in Japan

Abstract

This article focuses on the current development of the global logistics network and its impact on the logistics industry in Japan. In particular, the paper summarizes the expansion of the Panama Canal (PC) in June 2016, the ‘revival’ of the usage of the Northern Sea Route (NSR) from 2010, and the implementation of China's Belt and Road Initiative (BRI) since 2013. The expansion of the PC brought on the enlargement of vessels which transit the PC, resulting in the enlargement of vessels which call at Japanese ports directly and indirectly (throughout the cascade effect), and allowed transit for LNG vessels. From the long-term perspective, the usage of the NSR will expand in the future as the ice in the Arctic Sea melts, but from the short-term view, usage depends on the progress of natural resource development in the Arctic region. China's BRI policy can be understood in the context of the developmental history of the Chinese economy and trans-Eurasian land transport, as it alleviates logistics handicaps found in the inland area of China and provides alternative routes to access the sea which can avoid chokepoints within Southeast Asia.