A leading mutual insurer for the international transport and logistics industry has warned of the potential disruption to ports, terminals, and logistics operations in the event of a super El Niño.
TT Club said forecasts are pointing to an unusually strong El Niño and that international transport companies should review business continuity plans, supply chain, and crisis response procedures before weather impacts their business. The naturally occurring climate cycle linked to unusually warm surface water in the central and eastern tropical Pacific Ocean can influence weather patterns across several regions at the same time.
The insurer said that the combination of climate and geopolitical pressures should be regarded as one of the more serious concerns. Operational impacts may include berth closures, damaged infrastructure, and changes to vessel schedules. Beyond maritime disruption, flooded roads, a damaged rail network, and restricted river transport can also delay shipments.
TT Club urged companies to test resilience plans and assess operational risk, including escalation procedures by defining accountability for operational decisions and how customers are informed should disruption occur.
IAM Member Impact: Although shipping disruption is outside the control of our members, the warning should prompt action for companies to review communication and contingency protocols, so disruption doesn’t translate into client relationship damage.
Source: Break Bulk News