Japan puts annus horribilis behind it

More than 22,000 people died, large parts of the economy ceased to function for days and weeks, and supply chains both in Japan and overseas suffered disruption for months afterwards.

Ports, except for those such as Sendai, Hachinohe, Ishinomaki and Onahama in the path of the tsunami, started limited operations shortly afterwards, although in the Tokyo/Yoyhama area truck and fuel shortages imposed limitations and nuclear fallout have meant both limitations on some exports, and regular checks of cargo at ports. Despite the faster than expected recovery, port closures in the aftermath of the catastrophe were still estimated to have cost Japan over $3bn in lost seaborne trade.

Japan was again on the receiving end of nature’s worst in August when floods in Thailand, where Japanese companies have a major presence, closed down much of that country’s industry. Many Japanese auto electronic makers again saw their supply chains in Japan and overseas grind to a halt.

Japan’s ports are notoriously slow to release throughput figures, but the short-term impact of Japan’s annus horribilis was evident in the country’s trade statistics. Total exports shrank 2.7% last year – and by a huge 8% in December as demand for electronics from key market slowed – while imports surged 12%, much of it alternative fuel sources such as coal and oil as most of Japan’s nuclear power stations remain closed. The upshot was that Japan recorded its first annual trade deficit in 30 years in 2011.