U.S. Imports of Auto-related Goods from Japan Expected to Decline

Mar 16, 2011, 08:15 ET from The Journal of Commerce/PIERS

NEWARK, N.J., March 16, 2011 /PRNewswire/ -- The automobile industry is the largest U.S. importer of goods shipped via container transport from Japan, giving auto manufacturing and support businesses the greatest threat of disruption as Japan's industrial output struggles following the devastating earthquake and tsunami, according to data and analysis from The Journal of Commerce/PIERS.  Japan is the No. 3 exporter of containerized goods to the United States, according to PIERS data, behind China and Korea. The country is second, behind only China, as an importer from the U.S., based on container volume measured by PIERS data.

(Photo: http://photos.prnewswire.com/prnh/20110316/NY65958 )

Although three Japanese ports — Sendai, Hitachinaka and Kashima — have remained closed since the disaster on the northeastern coast, the country's largest ports, including Tokyo, Kobe and Yokohama in the industrial southern part of the country were open this week and handling commercial vessels.  But Mario Moreno, economist for The Journal of Commerce, said Japanese exports "will weaken in the months ahead as the closing of several manufacturing plants prompted by electricity shortages, combines with severely damaged roads and bridges to hamper production."

In 2010, U.S. containerized imports of auto parts from Japan, accounted for 28 percent of the total U.S. imports of this commodity globally.  Boosted by solid gains in U.S. auto sales last year, imports of auto parts from Japan rose 22 percent in 2010, according to PIERS data. The increase was already slowing in 2011, growing by only 3 percent, year over year in January 2011 versus 2010.  

"The positive trend is unlikely to continue," says Moreno.  "U.S. car manufacturers, like Toyota, must meet strict specifications and use Toyota-made auto parts only."  Moreno's forecast issued in December anticipated a 2.5 percent decline in U.S. containerized imports from Japan, coming off high volumes in 2010.

Japan's bilateral trade includes China as its top export market, with 21 percent of its total exports in 2010, while the U.S. accounted for 17 percent.  Japan's export to China was $598 billion in 2010, up 36 percent from 2009, and exports to the U.S. totaled $482 billion, up by 26 percent from 2009.(1)

(1) Containerized and non-containerized data sourced from PIERS Stats Plus

About The Journal of Commerce:   Since 1827, The Journal of Commerce has been the most trusted source of intelligence for international logistics executives to help them plan global supply chains and better manage day-to-day transportation of goods and commodities in the United States and internationally.

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About PIERS - PIERS is the global import and export information service that provides powerful tools and data for measuring markets, analyzing competition and uncovering opportunities.  Launched more than 35 years ago, PIERS was the first venture in digital global trade intelligence and quickly became the industry standard for accuracy, reliability and insight.  Thousands of subscribers from public and private businesses, trade associations and governments around the world rely on PIERS to guide their global business strategies.  PIERS is a division of UBM Global Trade, and a sister company of The Journal of Commerce.  For more information, visit www.piers.com, or call 800-952-3839 (+1-973-776-8660).

About UBM Global Trade - UBM Global Trade is the leading provider of proprietary data, news, business intelligence and analytical content supporting commercial maritime, rail, trucking, warehousing and logistics industries worldwide. The company's portfolio of more than 100 online, print and interactive workflow business solutions includes The Journal of Commerce, Breakbulk, RailResource, PIERS and an array of international trade and transportation databases and directories. UBM Global Trade, a subsidiary of United Business Media Limited, is headquartered in Newark, NJ, with offices throughout the United States. For more information, explore www.ubmglobaltrade.com or call 800-223-0243 (+1-973-848-7250 outside the U.S. or Canada).  

SOURCE The Journal of Commerce/PIERS



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