4-5. Comprehensive Guide to Laws and Regulations for 3PL Operators
Because 3PL (Third-Party Logistics) operators comprehensively undertake and operate logistics tasks from shippers, they are subject to a wide range of legal regulations concerning business relationships with shippers, operation and safety management of their own and partner companies, warehouse maintenance and management, and labor management.
The main groups of laws and regulatory contents that 3PL operators should particularly understand are as follows.
1. Laws Related to Transactions and Contracts (Relationships with Shippers and Partner Companies)
These are laws stipulating the optimization of transactions for entrustment contracts with shipper companies and when subcontracting to transport and warehouse companies.
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Act on the Optimization of Transactions between Freelancers and Businesses (New Freelance Act) / Subcontract Act:
- Protection in Entrustment/Subcontracting Transactions: When subcontracting to partner companies (small/medium transport operators or independent truck drivers), immediate delivery of order documents, prohibition of unjustifiable price reduction, and prohibition of delay in payment are mandatory.
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Logistics Efficiency Act (Act on the Promotion of Comprehensive and Efficient Distribution Business):
- Clarification of Responsibilities of Shippers and Logistics Operators: Through the revised act phased in from 2024 to 2026, efforts obligations and regulations for "reducing long waiting and cargo handling times" and "improving loading efficiency" are imposed on shippers, 3PL operators, and truck transport operators. For specified operators (above a certain scale), the creation of medium- to long-term plans and the appointment of a Chief Logistics Officer (CLO) are mandatory.
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Antimonopoly Act (Prevention of Abuse of Superior Bargaining Position):
- Serves as the legal basis to prevent being coerced by shipper companies into "unpaid incidental work not included in the contract (such as price tagging or manual unloading)" or suffering from unjustifiable price reduction.
2. Laws Related to Logistics Site Operations and Infrastructure
These are business laws enabling 3PL operators to conduct "storage" and "transport" either by themselves or using partner companies.
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Warehousing Business Act:
- When storing other people's cargo for a fee on a consigned basis, "Commercial Warehouse Registration" with the Ministry of Land, Infrastructure, Transport and Tourism is mandatory, regardless of whether the warehouse is self-owned or leased. Accepting goods without registration constitutes an unregistered operation (subject to imprisonment/fines).
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Motor Truck Transportation Business Act:
- When transporting using company-owned vehicles, "Permission for General Motor Truck Transportation Business" is required. When arranging for partner companies to handle deliveries (utilized transportation), "Registration/Permission for Class I/Class II Consigned Freight Forwarding Business" is necessary.
3. Laws Related to Labor Environment and Occupational Health and Safety
These are laws and regulations concerning the resolution of driver shortages, prevention of overwork, and securing the safety of warehouse workers.
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Labor Standards Act (Upper Limit Regulation on Overtime Work / Dealing with the 2024 Problem):
- Compliance with the upper limit on overtime work for truck drivers (regulated at 960 hours/year) and the public notice of improvement standards (restrictions on binding hours, regulations on holiday work).
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Industrial Safety and Health Act:
- Securing Safety at Work Sites: Safety standards for forklift operations inside warehouses, fall prevention measures for high-place work, heatstroke countermeasures, and the establishment of a health and safety committee are mandatory.
4. Other Laws Related to Environment and Safety Measures
- Fire Service Act: Regulations on the storage of hazardous materials (lithium-ion batteries, paints, alcohols, etc.) and the maintenance and management of automatic fire alarms and sprinklers.
- Food Sanitation Act / HACCP: When undertaking food logistics, the recording of temperature control (cold chain) and the establishment of advanced hygiene management systems.