Closure of Port of Kobe Will Disrupt Shipping Worldwide
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The Port of Kobe, seriously damaged in Tuesday’s earthquake, is a key site in global shipping. Its closure, likely to last more than six months, will disrupt shipping worldwide.
* Kobe is one of the 10 busiest container cargo ports in the world, handling 170 million tons of cargo--2.7 million containers--a year. The only busier container ports than the Kobe/Osaka combination are Singapore, Hong Kong, Kaohsiung (Taiwan), Los Angeles/Long Beach, Rotterdam and Tokyo/Yokohama.
* More than 10% of Japan’s ocean freight comes through Kobe, at the center of one of Japan’s industrial heartlands. The region hit by the quake accounts for 20% of Japan’s national output.
* Kobe is a major shipping partner for both the Port of Los Angeles and the Port of Long Beach. Kobe receives fruit, beef and pork from Southern California and ships back a significant amount of electronics and home appliances. Kobe is Los Angeles’ third-biggest trading partner, responsible for 4% of imports and exports. It is No. 5 on the trading list for Long Beach, making up about 6% of its business.
* About 85% of Kobe’s cargo is in containers that can be diverted to other ports, which economists say will lessen the impact on Japan’s overall economy.
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