The port of Tianjin, China, is not only a major gateway for freight going to Beijing, but it is the second largest port for the import and export of automobiles in China. Because of the massive series of explosions that badly damaged the port facility and killed at least 112 people, shipments of automotive parts within Asia will likely be disrupted, according to a reports from The Loadstar.
The explosion occurred when toxic chemicals in a warehouse owned by logistics company Rui Hai International Logistics Co. Ltd. were somehow ignited on the evening of Aug. 12 severely damaging Tianjin Port, which is also the third largest port in China, and fourth largest globally in terms of total cargo throughput.
It has been reported that approximately 2,700 new vehicles awaiting delivery have been damaged or destroyed, with Volkswagen having been hit particularly hard. Toyota has shut down two of its plants that were near the port for three days. The car maker said that 50 of its employees were injured in the blast. In the meantime, BMW has moved its port operations to Shanghai for importing its cars into China.
Four helicopters operated by Eastern General Aviation Co. were also damaged when a hangar door was blown off from the force of the explosion. Intermodal containers that were stacked high were tossed about like matchsticks.
Marine Log said that total cargo throughput at the port in 2014 was 445.78 million tonnes, and of that 286.77 million tonnes were non-containerized cargo, consisting of metal ore, coal, automobiles, steel and crude oil. Total container throughput is stated to have been 14.06 million TEUs.
Logistical shockwaves continue to reverberate through the industry. Two of the port’s container terminals remain closed. Fortune magazine said that it could be a week until goods are flowing at 80 percent of capacity. A source told Fortune that the prices of many industrial materials will likely rise in coming weeks, which will have an impact on the electronics and health care industries. Coming just over three months before the U.S. holiday shopping season, this could delay the arrival of popular items in the U.S. on time for Black Friday. If disruptions at the port persist, air freight could be the answer.
Port officials said there are 90 people still missing since the explosion.