Impact on Maritime Industry from 8.9 Earthquake in Japan
The 8.9 earthquake and ensuring tsunami in Japan have left the country devastated. As the rest of the world offers its immediate assistance and humanitarian aid, the long term economic consequences will become more apparent. There will certainly be an impact on the maritime industry.
In a news story published today by Peter T. Leach in the The Journal of Commerce, he reports that Japan's shipping industry and services will be hit across the board by the massive 8.9 magnitude earthquake and tsunami that slammed the country Friday, according to an initial assessment of the impact by BIMCO, the independent shipping association in Copenhagen.
The Journal of Commerce further reported that "Container shipping may be impacted by lack of exports from the Japanese factories, causing liner companies to leap-frog Japanese ports on their trans-Pacific trading lanes," BIMCO said in its assessment. "Both imports and exports may be affected by force majeure."
Mr. Leach cited other analysts who believed the earthquake may be the most expensive natural disaster, with estimates of the insurance loss running as high as $10 billion.
As also reported by rediff.com India fears that the tsunami that shook Japan would disrupt maritime activities in the region and impact prices of commodities like crude oil globally.
Assocham Secretary General D S Rawat was reported as saying, "The supply of commodities will be impacted globally as most of the trade takes place through sea."
