Ports in northeast Japan devastated by earthquake

The devastating earthquake and tsunami have caused extensive damage to the ports in northeastern Japan. These ports include Kashima, Hitachinaka, Hitachi, Onahama, Soma, Sendai, Shiogama, Ishinomaki, Kesennuma, Ofunato, Kamashi, Miyako and Hachinohe, according to the Tokyo office of Inchcape Shipping Services (ISS).

According to ISS, the oil port and terminals at Sendai, Onahama and Kashima are closed and the Cosmo Oil terminal at Niigata is on fire and is closed.

The JX Group has also terminated the export of petroleum products in order to meet domestic demand.

The earthquake and tsunami that closed ports in northeast Japan, could create potential disruptions in dry bulk trade, according to investment bankers Dahlman Rose & Co.

Japan is a major importer of oil and dry cargoes, accounting for roughly 15% of Arabian Gulf VLCC cargoes and 10% of all dry bulk trade. Notably, Japanese imports account for approximately 30% of global met coal trade and 19% of global thermal coal trade. As of this morning, reports indicate that ports Kobe and Yokohama have resumed operations.

The major steel mills such as Nippon Steel, JFE, Sumitomo Metal terminals are located at the ports of Muroran, Kashima, Kimitsu (Kisarazu), Kawasaki, Nagoya, Wakayama, Kakogawa, Mizushima, Fukuyama, Oita, etc. are not affected by the disaster directly except the Sumitomo Metal terminal at Kashima which has been damaged.

Meanwhile, most of the major shipyards are located outside of the damaged area especially in the southern part of Japan and have not suffered damage.

There have been no reported damages to the ports in northern and central parts of Japan, including major ports Tokyo, Yokohama, Kawasaki, Chiba at present.

It has been reported that crew members have been ordered to evacuate their vessels in certain Japanese ports and some crew changes in Tokyo Bay this weekend, will ultimately be cancelled or postponed.

Tokyo Narita airport has been closed and it is not yet certain when it will re-open. Tokyo Haneda airport is however open for a limited number of arrival flights, but there will be no departures.

March 14, 2011