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THE chemical explosions that rocked the Chinese port city of Tianjin on 12 August 2015 may have widespread and long lasting effects on the global electronics supply chain, claim experts.
Supply chain intelligence firm Elementum CEO Nader Mikhail has said the Tianjin incident rivals Japan’s tsunami and the 2012 Thai flood in terms of impact on supply chains. The explosion has destroyed large numbers of shipping containers in and around the port, and immobilised export operations at two of the terminals for at least a week.
Because any disruption would have ripple effects, the Tianjin ports are expected to be delayed for weeks or months due to the incident.
The port was housing not just chemicals and finished goods, but also components, meaning the impact may be far ranging. Additionally, many of the chemicals caught up in the explosion are used in electronics production.
Particularly, the company at the centre of the incident, Ruihai International Logistics, handled the majority of the hazardous chemicals shipped through Tianjin, including chemicals used in electronics. This disruption may cause the prices of many industrial materials to rise.