Yazaki saddled with air freight costs

13/10/2011

<p style="text-align: justify;">Toyota Motor’s production may have bounced back after the triple earthquake-tsunami-nuclear disaster of earlier this year, but problems for one of its suppliers in Samoa continue – for unrelated reasons, though.<!--more--></p>
<p style="text-align: justify;">Yazaki EDS Samoa Ltd is Samoa’s biggest private sector employer and makes harnesses for Australia’s automotive industry, where Toyota’s Camry brand is built.</p>
<p style="text-align: justify;">The company has had to rely on expensive airfreight for its logistics after shipping services to Samoa have been curtailed. Only one vessel now sails to Australia, via New Zealand, which means a delay to refilling stock in Melbourne. The stop in New Zealand also adds to the delay because of quarantine assessment requirements.</p>
<p style="text-align: justify;">The vessel has a 16-day turn-around time while the Samoan supplier needs a seven day turnaround ideally. In the meantime, the company has had to spend an additional US$420,000 a month on air freight.</p>
<p style="text-align: justify;">The shipping company cites low capacities as a reason for the curtailment of its services to Samoa – a familiar problem in the Pacific Islands region.</p>
<p style="text-align: justify;"></p>

©2018 by Pacific Trade Invest