Natural Disaster Risk Example: Hurricane Harvey
Hurricane Harvey was a tropical cyclone that hit the United States in August 2017. It caused major catastrophic damage in the area of Houston, TX, mostly triggered by flooding.
Hurricane Harvey had immediate effects on global supply chains—largely due to the significance of Houston’s port, which receives billions of dollars of imports from countries like China, Mexico, Germany, Brazil and the Netherlands. Estimates state that nearly 800 factories, warehouses and distribution centers were affected by Hurricane Harvey, many operating in the high-tech industry.
Like all hurricanes, Hurricane Harvey only lasted a few days. However, its effect on global supply chains was felt for months after the event.