Toyota to Divert Car Shipment to Other Ports
Toyota Motor Corp is planning to divert its shipment to Dalian and Shanghai ports from Tianjin, China’s main car import portal as operations is disrupted after the massive explosions that happened last week. HIS Automotive a research firm said that it might take a couple of months for Tianjin to return to normal port function. Other automakers also made move to switch to Shanghai and other ports.
A senior official at Toyota stated that Dalian and Shanghai ports should have enough capacity to stop a severe logistical problem. The port of Tianjin will be unusable for a longtime and no one knows how long the disruption will last. Toyota will reroute other cars to other ports other than Dalian and Shanghai. Huge explosions destroyed parts of Tianjin port last August 12, investigators are still determine the cause of the explosions at the 10th largest port and China’s gateway to China’s industrial northeast.
Shanghai port’s only auto terminal will see a 10 percent increase in car volume over their normal levels based on queries that they receive from clients. According to customs data, China imported around 1.4 million cars in 2014 and Shanghai terminal alone has a capacity of 2 to 3 million. Although Dalian and Shanghai is only a temporary solution they can’t replace Tianjin and once operations in Tianjin will be back it will continue to hold its dominant position.
Two of Toyota’s final assembly plant in Tianjin has suspended their operations to assess the damages the blast has inflicted. The two plants produced 432,340 vehicles last year and is estimated to have a production loss of 2,200 cars a day sue to the explosion.