Recently, Tropical Storm Pulasan struck near Shanghai, days after Typhoon Bebinca. It halts shipping operations and ground transportation and increases risks such as flooding and landslides.
Typhoons' Impact on Shipping and Trade
When powerful storms like Pulasan and Bebinca hit key transportation hubs, their effects spread quickly and widely. In Shanghai, one of the world’s largest ports, both storms severely disrupted rail, ferry, and road transport across the region. Delays in shipping schedules and the suspension of cargo movements created bottlenecks for goods awaiting import or export.
The immediate result of such natural disasters is a slowdown in supply chains. Shipping companies, freight forwarders, and manufacturers may experience significant delays, and rerouting vessels becomes challenging, adding extra costs and time to deliveries.
Infrastructure Damage and Delays
Typhoons often cause structural damage to ports, roads, and warehouses, making it impossible to handle cargo. For instance, Bebinca triggered the evacuation of over 400,000 people. What’s worse, it flooded farmland and caused substantial damage to homes and infrastructure, including the felling of over 10,000 trees in the region.
Pulasan’s arrival only compounded these problems, increasing the risk of landslides and additional flooding. It can further hamper transportation routes.
These storms can damage shipping containers, delay customs clearance, and disrupt local supply lines, causing a ripple effect through the global logistics network.
Rerouting and Costs for International Freight
In many cases, when storms like Pulasan hit, shipping companies are forced to reroute vessels to avoid dangerous conditions. It increases costs for international logistics providers and clients, as rerouting requires more fuel and time. Additionally, insurance claims for damaged goods or delayed shipments rise during such events, driving up the overall cost of international shipping.
For companies reliant on just-in-time supply chains, even short disruptions can lead to inventory shortages and production delays, impacting businesses worldwide.
Preparing for Storm Seasons
As typhoon seasons approach, companies involved in international shipping must have contingency plans. It includes tracking weather patterns, coordinating with ports and logistics providers, and preparing to reroute vessels to less-affected regions.
Maintaining communication with clients and providing real-time updates on shipping statuses can mitigate some of the uncertainty caused by these unpredictable weather events. For global businesses, building resilience into their supply chains by diversifying sourcing and shipping routes can help reduce the overall risk posed by severe weather.
