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XPO launches Siemens Climate Solutions distribution system
XPO Logistics has created a UK distribution soluti...

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Emirates SkyCargo still flying high after 18 years
Emirates SkyCargo is celebrating its 18th Annivers...

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DP World backs Royal Challengers Bangalore
DP World have signed a long-term Sponsorship Agree...

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Emirates conducts additional flights for Onam season
Emirates SkyCargo operated several additional carg...

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Caribbean flying in with Covid-19 relief
Caribbean Airlines Cargo has collaborated with the...

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CEVA commences CargoWise rollout
CEVA Logistics has commenced the rollout of CargoW...

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Volumes up as airfreight tracks route to recovery
The gradual route to recovery to pre-COVID market ...

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ParcelHero: Revenge of the high street
There was plenty of good news for Britain’s beleag...

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XPO launches Siemens Climate Solutions distribution system
Emirates SkyCargo still flying high after 18 years...
DP World backs Royal Challengers Bangalore
Emirates conducts additional flights for Onam season
Caribbean flying in with Covid-19 relief
CEVA commences CargoWise rollout
Volumes up as airfreight tracks route to recovery...
Virgin Atlantic Cargo announces new UK-Pakistan routes for...
ParcelHero: Revenge of the high street

 

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August 18, 2015: The recent explosions in the Chinese port of Tianjin could have far-reaching and long-lasting impacts on global supply chains.

As one of the world's largest ports, Tianjin is a primary gateway for goods produced in northern China and a shipping point for the chemicals used in electronics production.

The explosion occurred at a Ruihai International Logistics warehouse, which stored the majority of the hazardous chemicals shipped through Tianjin. As a result, experts predict that the price of many industrial materials, particularly for the electronics and health care industries, will rise in the coming weeks.

Immediate supply chain losses are huge as goods from hundreds of international companies were in the port at the time of the disaster. In addition, operations were suspended in two of Tianjin's terminals as a result of the explosion. Projections are that the port will be clogged for weeks or even months.

With the U.S. holiday season less than three months away, this disruption comes at a particularly bad time. Many of the finished goods and materials in port would have been used to stock store shelves in November, but those products now see shortages and face costly delays.

Currently, goods are being rerouted to the ports of Qingdao and Shanghai, resulting in additional logistics costs.

- Carol Miller is vice president of Marketing & Communications Services for MHI. Based in Charlotte, NC, MHI is the largest material handling, logistics and supply chain association in the U.S.

(CMA CGM reports that while vessel berthings and departures at Tianjin are back to normal, low productivity and longer port-stay are still expected. In a statement, the company said export and import of dangerous cargo have been completely banned by local authorities. However shippers now can deliver non-hazardous export containers to the port terminal.)

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