Comparison of population density
Reservations for May suggest that both airlines and railways may be facing the worst passenger traffic results on record. We see a growing possibility that demand will not fully recover even after COVID-19 pandemic has ended. Japan's high population density in habitable areas has underpinned its position as a "railway kingdom", but it may be about to experience the flip side of this going forward.
In contrast to the passenger industry, which is at a historic crossroads, the freight industry is facing a common economic recession. Freight movement of producer goods appears to have declined considerably, but the decline for consumer goods has been relatively mild due to demand for home consumption. Container freight movement has also declined, but forward-looking supply adjustments have kept ship utilization rates at a high level.