JAPAN: There is some news from the experts, some of whom are saying that ‘falling oil prices have an upside while others indicate a downside’ and some are saying that ‘the negative impact on imported materials shipment due to the West Coast dock slowdown’.
The falling oil prices have been a blessing for shipping costs, but they stunted energy-related manufacturing projects, as well, with one respondent in the computer and electronic products category saying “business has not slowed as of yet, but outlook is that business should start slowing, energy market related.”
A respondent who works in chemical products said: “Collapse of oil prices is supporting negotiations for significantly lower petrochemical related material prices. Sales are slowing down as buyers reduce inventory in anticipation of lower prices.”
And a respondent who works in apparel, leather and allied products said: “Energy prices falling are a blessing and a curse for us. We will experience downside as projects are canceled by energy companies, but suspect manufacturing in the U.S. will improve driving upside in that space.”
Meanwhile, a labor dispute at ports from Tacoma, WA, to Long Beach, CA, has affected the timely delivery of goods from Asia. The slow offloading of cargo containers at the facilities has disrupted companies’ supply chains and caused pain points in inventory management.
A fabricated metal products executive said: “West Coast port issues have greatly impacted our incoming materials. We are air freighting many parts from Japan and Asia to support production while parts sit at the dock.”
A respondent who works in textile mills said: “West Coast ports are creating delays for imported goods,” and another in machinery said, “The West Coast ports slow-down is really affecting deliveries of our Asian purchases.”
