Sea Container import prices treble as Honda suspends production

Honda has suspended production at its UK car plant after transport-related delays to the delivery of parts.

The Japanese car maker told workers that it would have to pause work today, but would restart as soon as possible.

It comes as logistics bosses call on the government to help clear congestion at the UK’s container ports.

Honda’s factory in Swindon, where it makes the Civic model, operates on a “just in time” basis designed to increase efficiency and avoid stockpiling parts.

It means those parts only arrive just when they are needed – but also that delays in delivery risk holding up production.

As well as transport delays, which is being seen for all importers by way of sea containers, shipping costs have gone through the roof.

Container shipping prices have raised to around 8,000 dollars  compared to 2,000 just 4 weeks ago.

Honda said in a statement that it “has confirmed to employees that production will not run on Wednesday 9 December due to transport-related parts delays”.

“The situation is currently being monitored with a view to re-start production as soon as possible,” the company added.

A spokesman was unable to give any further detail when asked about the nature of the delays.

Although, its well known now through the importing/sea container industry that shipping lines have cut back on shipments, trebled prices leaving a shortage of available vessels.  Global247News Twitter

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