23 Logistics Hubs Your Company Should Be Watching

The Resilient Enterprise | The riskmethods Blog

March 12, 2019

by Wojciech Elbert

 

One of our most recent exercises took us on a dive into the data on risky airports and seaports around the world. The question: What are the largest ports with multi-year trends of reported threats?

Here at riskmethods, we’re all about data. Which is a good thing, because we’ve got a whole lot of it. But that’s not all we have. Thanks to our team of risk experts, we’re able to take that data and turn it from raw numbers into useful, actionable information. 

One of our recent exercises had us looking at the largest logistics hubs with year-on-year trends of high risk scores. What airports and seaports fall into this category? We came up with 23 in total, with locations ranging from New York to China. Below you can get a glimpse at some of the ports on the list, and here's the full list, along with some of their risk indicators.

Risky Logistics Hubs

  • Frankfurt am Main Intl. Airport, Germany
  • Memphis Intl. Airport, USA
  • Louisville Intl. Airport, USA
  • Ted Stevens Anchorage Intl. Airport, US
  • Hong Kong Intl. Airport, China
  • Shanghai Pudong Intl. Airport, China
  • Dubai Intl. Airport, UAE
  • Taiwan Taoyuan Intl. Airport, Taiwan
  • Port of Hamburg, Germany
  • Port of Rotterdam, Netherlands
  • Port of Antwerp, Belgium
  • Port of Los Angeles, USA
  • Port of New York, USA
  • Port of Tianjin, China
  • Port of Busan, South Korea
  • Port of Kaohsiung, Taiwan

Why These Hubs Are Risky

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.

elbert-wojciech-profil

Wojciech Elbert

Team Lead, Data Analyst

Wojciech is a data analyst at riskmethods. Got questions about how to stop supply chain risk from threatening your business? Drop us a line at om@riskmethods.net.

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