Honda has stopped production at its Swindon plant due to a shortage of car parts, that were due to arrive on long-haul ships.
The Japanese car maker, which relies on “just-in-time” and “just-in-sequence” supplies, informed employees it was experiencing vessel delays and congestion at UK ports, according to the BBC.
Go deeper with GlobalData
Chaos has ensued at British ports due to a series of unfortunate events, namely: a looming Brexit deadline; increased seasonal demand in the run-up to Christmas; supply chain disruption due to COVID-19; and the recent poor weather.
A spokesperson from Honda said: “The situation is currently being monitored with a view to restart production as soon as possible.”
The problems were initially at Felixstowe, however, congestion has redirected container traffic towards Southampton and London Gateway. According to the BBC, issues at Felixstowe have been evident for some time, and could be attributable to a vehicle booking system that “didn’t work” according to hauliers.
In anticipation of the Brexit transition deadline on 31 December, an amass of customs paperwork has held up deliveries causing major delays. Numerous firms have also been stockpiling in fear or an unfavourable Brexit trade deal.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataMeanwhile, disruption to supply chains from the Covid-19 pandemic has caused a backlog of empty containers awaiting return to the Far East, intensifying congestion. Thousands of containers of PPE imported on behalf of the government were also left at Felixstowe for weeks.
The volume of goods being imported has also been much higher than normal, following the lifting of lockdown restrictions. Weekly import volumes were more than 30% higher than average levels at Felixstowe in early September.
Finally, temporary suspension of operations at Southampton this week due to poor weather further compounded the problems.
Shipping firms are being forced to limit the amount of cargo they can bring into the UK as the congestion in English ports continues to worsen.
Honda is reportedly evaluating the possibility of importing parts via air freight, but even with alternative arrangements, production may not resume until Wednesday.
