Honda halts UK production over supply chain disruption
<p>Japanese carmaker <a href="//www.honda.co.uk">Honda</a> is today pausing production at its plant in Swindon, UK, due to congestion at UK posts affecting shipments of just in time parts.</p>
<p>"The situation is currently being monitored with a view to restart production as soon as possible," Honda said.</p>
<p>"Honda of the UK Manufacturing has confirmed to employees that production will not run on Wednesday 9 December due to transport-related parts delays."</p>
<p>Honda is said to be considering flying in essential parts.</p>
<p>Honda previously announced the closure of the plant, slated for July 2021, due to global changes in the car industry and the need to transition to electric vehicles. Fears over a no-deal Brexit and possible trade tariffs are also considered to be a factor in the decision.</p>
<p>Congestion at UK container parts has been building as companies stockpile ahead of a potential no-deal Brexit, and global disruption due to Covid-19.</p>
<p>There have been problems at Felixstowe, Southampton and London Gateway, with many containers being offloaded in continental Europe rather than the UK die to the backlog.</p>
<p>There are reports of a global shipping crisis and soaring costs, with one London-based company – One Retail Group – telling the BBC that costs of importing a 40-foot container have risen from US$2,000 to US$10,000.</p>
<p>There is also a growing shortage of available empty containers.</p>
<p>Representatives of UK ports, shipping and logistics sectors have written to Transport Secretary Grant Shapps to highlight the crisis.</p>
<p>"We recognise government's capacity to step in is limited, but where they can, they should look at ways of increasing the capacity for moving containers on and off ports," said Tim Morris, chief executive of ports' trade association, the UK Major Ports Group.</p>
<p>"That could mean running more and longer trains to and from ports, allowing hauliers more flexibility to collect containers out of normal hours, and for drivers to take on longer shifts where that can be done safely."</p>
<p>The UK Department for Transport said the government is working with the freight industry to tackle the situation.</p>
Kuehne+Nagel cuts carbon footprint by 70% for Honda China
Around 16,000 tonnes of CO2 has been cut from supply chain of Honda's China-based manufacturing division through a road-to-rail transformation in partnership with logistics leader Kuehne+Nagel.
The programme was developed through KN Sincero, the joint venture between Swiss headquartered Kuehne+Nagel and Chinese automotive logistics firm Sincero, established in 2018.
KN Sincero worked with Honda China to develop an integrated solution to convert much of its domestic long-haul trucking to train lines, using regional hubs to improve supply chain performance and further reduce carbon emissions. The programme delivered consolidations as well as value-added services, including sorting, scanning, repackaging, GPS track and trace, and recyclable container management.
"Kuehne+Nagel has always been a supply chain partner that we can rely on, to help us improve our supply chain performance whilst also achieving our environmental goals,” said Mr. Jiang Hui and Mr. Takuji Kitamura, Joint General Manager of Wuhan Dong Hon, the logistics affiliate of Dongfong Honda Automotive.
After six months of shifting to the road-to-rail model, new supply chain reliability and efficiencies are expected too trip 16,000 tonnes of carbon emissions annually. The carbon savings represent an enormous 70% reduction in total.
"Automotive is one of the most important sectors in contract logistics, particularly in China, the world’s largest automotive market,” added Gianfranco Sgro, member of the Management Board of Kuehne + Nagel International AG, responsible for Contract Logistics. “I am glad that Kuehne+Nagel and Honda share a common vision of service, innovation and sustainability.”
Kuehne+Nagel’s Net Zero Carbon programme
Kuehne+Nagel announced its Net Zero Carbon programme in 2019 with a dual purpose to reduce CO2 output in its own logistics operations, as well as partnering with organisations to minimise their own impact on the planet. Kuehne+Nagel reached carbon neutrality globally in 2020 throughout its own, direct emissions, and is now focused on developing its capabilities to serve partners.
Dr. Detlef Trefzger, Chief Executive Officer of Kuehne+Nagel International AG, said the programme is “a package of measures to fight CO2 emissions and provide sustainable and innovative supply chain solutions – hand in hand with our suppliers and customers”.
As part of the initiative, Kuehne+Nagel established its own nature projects in Myanmar and New Zealand, and invested in ‘nature-based’ carbon dioxide compensation projects to strip harmful emissions from the environment. It is committed to being CO2 neutral for shipments in its network of transport suppliers by 2030.