Shanghai Airport Cargo Snarl Blamed by Mazda for Factory Halts
Shanghai Airport Cargo Snarl Blamed by Mazda for Factory Halts
(Bloomberg) -- The air cargo delays at Shanghai Pudong International Airport have snared Mazda Motor Corp. with the Japanese automaker saying the snarls have meant it can’t get electronic car parts out of China.
Mazda extended its output stoppage at two factories in Japan through Friday as coronavirus cases at the airport disrupt its supply chain. The delay of automotive electronic parts is impacting output of the CX-5 SUV and other models, spokesperson Naoto Mawatari said.
While the company doesn’t officially track which airlines are carrying the parts, “it appears to be ANA,” Mawatari said.
ANA Holdings Inc. said in a statement Wednesday that its flights from China have declined and there are restrictions around cargo due to the Covid-19 situation there. A ground handling company at Pudong airport has been especially impacted and “will be continued at least until Sept. 5.”
Five workers at the terminal were found to be infected with Covid last week, according to the China Daily, and the entire cargo zone at the airport was shut Friday, the Global Times reported Sunday.
“It’s likely that Mazda highly relied on its logistics route from Pudong airport” to procure parts, said Seiji Sugiura, an analyst at Tokyo Tokai Research Institute Co. The airport is also a hub for distributing cargo from other countries such as Thailand and Malaysia, he added.
Mazda declined to comment on whether the parts were coming from within China or other parts of Asia.
The carmaker will halt its Hiroshima and Hofu plants from Aug. 23 to Aug. 27 due to “the uncertainty as to when the cargo services will resume,” according to a statement Wednesday. Those plants were also temporarily stopped earlier this month because of heavy rain.
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