Supply Chain: U.S. yet to feel full consequence of Japan’s catastrophe

More news of the immediate and long-term impact of Japan’s earthquake and tsunami on the U.S. surfaced this week.

According to the Department of Transportation’s Bureau of Transportation Statistics (BTS) the event could result in lower levels of air and maritime imports for automobiles and parts and high-end electronics and devices like semiconductors, and specialty chemicals.

“The disruption of Japan’s transportation and distribution networks has already affected U.S. industrial supply chains, particularly automobile manufacturing and assembly plants,” said the BTS.

The BTS paper added that damaged equipment, loss of power and disrupted intermodal infrastructure in Japan reduced shipping capacity and interfered with international trade links.

And it also pointed out how the earthquake and tsunami disrupted Japan’s transportation and distribution networks, and subsequently U.S.-based industrial supply chains for automotive manufacturers GM, Toyota, Nissan, and Honda.

U.S. companies that engage in maritime trade with Japan may be forced to deal with ongoing disruptions until repairs are made, with BTS explaining that American firms may seek to obtain these products from alternate producers both internationally and domestically while waiting for factories, supply chains, and transport networks in Japan to recover. It added that U.S. air and maritime exports to Japan may increase, such as grains and agricultural products, steel and 2010 building products, and materials related to energy production to help aid in recovery.

This BTS paper follows similar observations made by Analysts for IDC Manufacturing Insights and IDC Retail Insights, which reported that Japanese manufacturers face severe disruptions across several value chains in the coming months.

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