Global automakers are among those impacted by the deadly industrial accident, and insurance losses from the blast could reach $1.5 billion, according to reports from Reuters.
Last week’s devastating explosion that killed at least 114 people in a Port of Tianjin warehouse district is already disrupting some supply chains, and others with high exposure to the port could also experience delays receiving imports from China, experts say.
Officials in the Chinese city have already ordered the port to stop handling container vessels carrying any shipments of hazardous materials, as well as oil and chemical tankers.
Tianjin accounted for 6.1 percent of China’s waterborne exports ($45.7 billion) and 8 percent of its imports ($36.5 billion) in the first six months of the year, according to Datamyne, which compiles and analyzes international trade data.
Commodities that will be impacted the most by the accident are steel products on the export side and raw materials, such as petroleum, soybeans and wheat, and automobiles, said Datamyne.
Tianjin is China’s largest import gateway for cars, with about 40 percent of the market, according to the official Xinhua news agency.
High-volume container shippers from Tianjin to the United States include wind turbine manufacturer Vestas Blades America, retailers Kmart and Family Dollar, as well as Itochu Building Products, Yingli Green Energy Americas, Ta Chen International, Sunny Designs Inc., McFerran Home Furnishing Corp. and Pacific Cycle, according to Datamyne and research firm Zepol.
Ocean carriers that predominate in Tianjin include China Shipping Container Lines, Mediterranean Shipping Co. and CMA-CGM, along with regional carriers.
Meanwhile, Credit Suisse estimated in a research note that insurance losses from the blast could be between $1 billion and $1.5 billion, according to Reuters. Large insurance companies have yet to provide any of their own estimates of claims.
The Credit Suisse analysis was based on Chinese media reports. The bank said most of those affected would be Chinese insurance companies as well as international groups that insure multinational companies or provide re-insurance coverage.
Reuters reported almost 5,000 automobiles were damaged in the blast and that the number could grow as the damage assessment continues. Renault SA said the explosion would affect its deliveries in August and September.
Tianjin explosion could cause shipping delays for U.S. importers
