Japan Earthquake/Tsunami Supply Chain Update

Major Ports Open – Although Japan’s major seaports remained mainly undamaged by the direct effects of the disaster, at least one major carrier, Maersk, has announced plans to avoid shipping lanes near damaged nuclear reactors.  This plan is unlikely to substantially impact current services; however, the radiation dangers are being closely monitored by those operating in the region.

Read more from the JOC.

Air Freight – In the short term, Japans air transportation market is expected to experience a major slowdown according to the Air Transport Association (IATA).  This slowdown may lead to carriers reducing flights to/from the country.

Read more from the IATA.

Auto and Tech Sectors Hardest Hit – Some of the world’s leading electronic and automotive companies were severely impacted by the effects of the earthquake and tsunami.  Japan produces approximately 40% of the flash memory used in computers, smartphones, and other devices.

Impact on Neighbors – Japan is the largest source of imports for China (13%).  With delays from Japanese electronic supplies, production for various digital products that normally see final assembly in China will likely be pushed back.

Read more from the JOC.

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