Subscribe to our free, weekly email newsletter!


Japanese automakers suspend vehicle production

According to “IHS Global Insight Perspective,” Japan’s auto industry has come to a halt as the physical impact of the disaster has combined with power-conservation measures to hit production
By Patrick Burnson, Executive Editor
March 17, 2011

Following last Friday’s earthquake and subsequent tsunami, nearly all Japanese automakers have idled production, owing to either physical damage or rolling blackouts.

According to “IHS Global Insight Perspective,” Japan’s auto industry has come to a halt as the physical impact of the disaster has combined with power-conservation measures to hit production.

“Although the human cost is of paramount concern, the ripple effect of the stoppages to supply and production in Japan will be felt in many parts of the world, including the United States, China, and Europe, as many key parts and technology are exported to global operations from Japan,” stated the report.

Analysts said the situation “is still fluid” and the impact of the disaster still being assessed. This should become clearer as the week unfolds and more information is gleaned about the extent of the damage to infrastructure in the country, the manufacturing plants, and indeed the communities that support the industry.

Initial discussion of the severity of the impact on the industry is centered around a few main areas of concern, including OEM assembly plant production. According the latest report, several auto plants in and around the northern Miyagi Prefecture have been shuttered – primarily Toyota, Honda, and Nissan facilities.

Many more auto plants throughout the country are at risk of closure, added analysts, some owing to temporary rolling blackouts that are being considered in order to conserve power in light of the damage to several Japanese nuclear power plants.

Brandon Fried, executive director of the Air Forwarders Association, told SCMR that air carriers are being called in to take out some components that would ordinarily move by ocean vessel.

“Japan’s airports are in much better shape than its seaports,” he said.
IHS also noted that there’s been some through disruption to the country’s transport infrastructure, affecting everything from parts delivery, personnel mobility, and shipping activity.

For related stories click here.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

When it comes to the chances of the December 31, 2015 Positive Train Control (PTC) deadline being extended, something which railroads say is badly needed, it appears they need to be prepared to be disappointed. That was the chief takeaway of a statement from Sarah Feinberg, acting administrator of the United States Department of Transportation’s Federal Railroad Administration (FRA).

It’s said that innovation will lead the economy out of its current funk. But how does an organization become a perpetually innovative company? That’s one of the questions Kai Engel and his co-authors at A.T. Kearney set out to answer in their new book Masters Of Innovation.

At $2.843, the average price per gallon was down 1.6 cents, following last week’s 1.1 cent drop and a cumulative 7.1 cent cumulative drop over the last five weeks.

LM Group News Editor Jeff Berman caught up with UPS Freight President Jack Holmes at the National Shippers Strategic Transportation Council’s (NASSTRAC) Annual Conference and Exhibition. Berman and Holmes spoke about various aspects of the less-than-truckload sector (LTL), as well as related freight transportation news and trends.

In the third-party logistics (3PL) sector, the ongoing trend of merger and acquisition (M&A) activity never seems to take a break. That is apparent in recent weeks alone, with XPO Logistics recent acquisition of Norbert Dentressangle for $3.53 billion, Echo Global Logistics scooping up Command Transportation for $420 million, and Kuehne+Nagel buying ReTrans for an undisclosed sum.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA