Florence’s Passage May Hurt Caterpillar’s Customers, Supply Chain Secure — Panjiva
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Florence’s Passage May Hurt Caterpillar’s Customers, Supply Chain Secure

Corp - Ports 664 Industrials - Capital Goods 267 Mode - Seaborne 1275 Theme - Disasters 60 U.S. 3310

The toll from Hurricane Florence, now a tropical depression, continued to be felt in the port of Wilmington, NC which will remain closed through Wednesday. That will bring the total closure to a week and comes as the National Weather Service warns of the risks of sudden flooding. Both bring the risk of disruptions to regional supply chains even though the reopening of Charleston should relieve international shipping strains.

As outlined in Panjiva research of September 11 port reopening can typically take days even after an extreme event, though the ability of logistics firms to complete out-of-port (and into-port) carriage can take longer to do so.

Panjiva data shows the largest consignees relying on Wilmington include apparel-maker Gildan (4,952 TEUs in the past year, or 4.5% of containerized traffic), construction equipment manufacturer Caterpillar (2,212 TEUs) and specialty chemicals producer Evonik (912 shipments including bulk products).

WIDE RANGE OF INDUSTRIAL EXPOSURES IN WILMINGTON

Chart segments imports to port of Wilmington, NC by consignee and product (HS-4) for the 12 months to August 31, denominated in number of shipments.    Source: Panjiva

For manufacturers with U.S. assembly / production  such as Caterpillar there can be knock-on effects to other parts of their supply chain nationwide. In the case of Wilmington disruptions to the supply chain should be minimal given its major import lines are completed backhoes and spares (included in 49.8% of shipments in the past 12 months) and shovel loaders (34.0%) from the U.K. Imports to other ports that focus on parts, such as Newark or Houston, could have proven more disruptive.

CATERPILLAR’S MULTI-PORT PRESENCE PROVIDES SUPPLY CHAIN RESILIENCE

Chart segments U.S. maritime inbound traffic for Caterpillar Inc by product and port of unlading in the 12 months to August 31, denominated in number of shipments.    Source: Panjiva

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