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

Earlier today, the United States Senate signed off on a six-year surface transportation authorization, according to various media reports. The bill, entitled the Developing a Reliable and Innovative Vision for the Economy (DRIVE) Act, passed by a 65-34 margin and comes at a time, when the most recent extension for surface transportation funding expires tomorrow, July 31.

Demand for the $500 million in available funding for the United States Department of Transportation’s TIGER (Transportation Investment Generating Economic Recovery) competitive grant program was easily trumped, with applications for the seventh round of TIGER grants coming in at $9.8 billion, or nearly twenty times the available amount, DOT said this week.

Global logistics managers will be tracking the progress of the controversial Trans-Pacific Partnership (TPP) talks in Maui, Hawaii this week, as negotiating parties hope to finalize the agreement.

As has been noted in recent coverage on this site in regards to Peak Season, one underlying theme has been, and remains, how Peak Season is not what it used to be. That is not to say there will not be any Peak Season-related activity. Make no mistake, there will be and things driving it from the seasonal nature of business activity and cargo flows to higher demand and increased e-commerce activity, among others.

UPS Access Point locations serve as a replacement delivery address when consumers are not at home to receive a package or when consumers want a delivery to go somewhere other than their residence.

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