Looking back at multi-year trends, we can see some common risk events that tend to hit these ports. Natural disasters are the most prominent, but other events like man-made disasters (a containership fire, for example) also occur with some regularity. Civil unrest (for example, protests due to government policies) and industrial disputes (strikes) also appear on the list of risk events frequently affecting ports. None of these should be surprising; these types of events are often among the top types of events that cause supply chain disruptions. Nonetheless, it's important to know what aspects of your business might be susceptible to them, and to make sure that you have a plan to address them when they occur.
What To Do If These Are Your Hubs
As you can see from the data, threats reported ranged in type: civil unrest, disaster at location (fires and explosions fall into this category), extratropical storms, earthquakes, flash floods, industrial disputes, power outages, tropical cyclones and terrorist attacks. Any of these can shut down, or at least slow down, operations at a port.
If your company is shipping goods via any of these sites—and chances are good that they are—it’s important to keep on top of what’s happening around them. You can’t prevent a port shutdown, but if you have a plan in place to deal with it when it happens (or if you can predict it) you’re one step ahead of the game, and one step ahead of your competitors. In fact, our customer Clariant was able to do exactly this—when they got an early warning of strikes at one of their major ports in Italy, they were able to reroute materials to avoid delays and costs. (Check out more of our customer stories!)
Want more data on where your risks lie? You might also like our collection of infographics about the 5 largest export nations with high risk scores. Find out what they are, and why they’re so risky.