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Submitted URL: https://order.weshield.us/e3t/Ctc/RI%20113/cZZj304/VVT5WP2sKYPwW3nVW2t8dFZRdW93kvSZ4QB0TVN24tzwQ3lLCfV1-WJV7CgRTVN6R9sP_KT...
Effective URL: https://www.freightwaves.com/news/supply-chain-effects-from-hurricane-ian-could-linger-for-weeks?utm_medium=email&_hsmi=22787...
Submission: On September 30 via api from US — Scanned from US
Effective URL: https://www.freightwaves.com/news/supply-chain-effects-from-hurricane-ian-could-linger-for-weeks?utm_medium=email&_hsmi=22787...
Submission: On September 30 via api from US — Scanned from US
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Hurricane Ian
Big 3 carriers suspend service amid Hurricane Ian’s aftermath
Home/News/Insights/Weather and Critical Events/Supply chain effects from
Hurricane Ian could linger for weeks
Air CargoAmerican ShipperNewsSupply ChainsTop StoriesWeather and Critical Events
SUPPLY CHAIN EFFECTS FROM HURRICANE IAN COULD LINGER FOR WEEKS
CITRUS GROWERS, MANUFACTURERS, MARINE TERMINALS AT HIGH RISK OF DAMAGE AND
DELAYS
Eric Kulisch Follow on Twitter Wednesday, September 28, 2022
4 minutes read
Eastbound traffic crowds Interstate 4 as people evacuate in preparation as
Hurricane Ian approaches the western side of the state in Lake Alfred. (AP
Photo/Phelan M. Ebenhack)
Listen to this article
0:00 / 7:07
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BeyondWords
(UPDATED Sept. 28, 2022, 9:50 A.M. ET)
The risk to manufacturing, agriculture and distribution sectors in Florida is
rapidly intensifying as powerful Hurricane Ian takes aim at the state’s
southwest coast. But the economic ripple effects are likely to be felt well
beyond the storm zone.
Experts are predicting severe disruption to supply chains from flooding, power
outages and wind damage that could stall factory and farm production, as well as
freight movement through major port, airport, highway and rail nodes. The
Tampa-to-Orlando corridor is chockablock full of huge retail and e-commerce
distribution centers.
Meanwhile, Typhoon Noru is similarly upsetting supply chains in Southeast Asia
as it barrels across the South China Sea toward Vietnam.
Ian is expected to make landfall in western Florida on Wednesday, according to
forecasters. Major flooding from the storm surge is expected for communities
along Tampa Bay.
The storm could impact up to 2,800 manufacturing firms in aerospace, automotive
components, heavy machinery, chemicals and plastics, as well as about 7,000
health care producers in pharmaceuticals, medical devices, diagnostics and other
fields, Everstream Analytics, which uses predictive software to help customers
like Apple and Schneider Electric manage supply chain risk, said in a weather
update Tuesday.
“Even just a couple hours of downtime at a major production site or industrial
zone means additional time making repairs, spinning up machinery and restarting
work,” said analyst Anthony Yanchuk.
According to Resilinc, which maps customers’ supply chains and provides early
warning of potential disruptions, Ian’s impact could be much wider and
long-lasting.
More than 4,500 factories, warehouses and distribution centers, which produce or
distribute about 74,000 parts for everything from electronics to chemicals, are
in the projected storm zone, Resilinc CEO Bindya Vakil told FreightWaves.
Nearly $20 billion in revenue is at risk just for companies Resilinc monitors.
Companies in other states could face shortages of truck capacity in the coming
days if many motor carriers shift resources to provide logistics support for
recovery efforts through the Federal Emergency Management Agency, humanitarian
aid groups or state governments, said Vakil.
It will take an average of nine weeks for business to recover to pre-Ian run
rates, based on historical experience with similar weather events and what
suppliers in Resilinc’s network are communicating, she said in the interview.
Production and shipping ability could be hindered by damage to buildings,
equipment or inventory. The length of downtime will be influenced by whether
businesses have alternative sites and redundant manufacturing.
“A lot of times people sort of know where the warehouse that they place their
orders is, but they don’t know where the factories are actually located, and how
the different factories connect into their supply chain,” Vakil said. “That’s,
that’s really important because if companies are not monitoring their suppliers
that are in Florida right now, then three weeks later, they might have a
critical supplier who says, ‘Hey, remember that hurricane that actually knocked
down power and my factory went down for two weeks and now I can’t ship you
something.’
“When you have companies who know that they have factories in the region, they
are picking up the phone right now, before the hurricane even made landfall,
they know exactly how much inventory they have, where it is, and they can start
to control and allocate in a right way and and control the usage. But if you’re
not aware, then you’re reacting three weeks from now. And that’s too late,”
Resilinc’s CEO said.
Everstream Analytics said the sector facing the biggest harm is agriculture. The
storm could cause extensive crop damage ahead of the harvest season, which
starts in November. Concerns have increased as the storm’s track shifted further
south in the last 24 hours toward more orange-producing counties.
South Florida produces 70% of U.S. citrus. High winds could blow down oranges
before they are picked and fields could be flooded. As Ian moves north, it could
also degrade cotton crops and soybean and tobacco production in the Southeast,
according to Everstream.
Truckers face the possibility of less business if there are reduced crop volumes
to move, and consumers could see higher produce prices, exacerbating already
high inflation.
FREIGHT TRANSPORT CONSTRAINTS
Power outages and high water are expected to paralyze traffic on major highways,
especially Interstates 4 and 75, the Everstream forecasters said.
Expedited trucking company Sterling Transportation said its shippers should
expect delays due to facility closures and that it may hold cargo at origin
instead of sending it into the storm area until conditions are considered safe.
Aftermath of Hurricane Laura in 2020. (Photo: Jim Allen/FreightWaves)
Vessel traffic is already being halted. Port Tampa Bay and Seaport Manatee,
which handles large quantities of steel, fertilizer and other noncontainerized
goods, both closed Tuesday so workers could secure equipment and vessels could
get out to sea. Port Tampa Bay specializes in imports of food and beverage
products, as well as fuel.
Port Miami’s two main container terminals are closed on Wednesday and Port
Everglades, in Fort Lauderdale, has stopped accepting inbound traffic on the
expectation of high winds from Ian as it passes to the west. And the ports of
Savannah, Georgia, and Charleston, South Carolina, have issued advisories for
tropical force winds later this week. Depending on Ian’s path and strength, they
could be forced to shut down too.
All four ports handle large amounts of container traffic.
Freight railroads haven’t revised their schedules yet but are monitoring
conditions.
As for air cargo, Tampa International Airport shut down at 5 p.m. ET on Tuesday
and Orlando International Airport is shutting down at 10:30 A.M. Wednesday.
Delta Airlines said no cargo can be picked up or delivered Tuesday until after
midnight at many airports in Florida, including Miami, Fort Lauderdale, Tampa
and Orlando. The service stoppage is likely to change Wednesday as the storm’s
path becomes clearer.
Miami International Airport said it is open, but some flights are delayed or
canceled due to the weather. Worldwide Logistics Group said in a customer notice
that local drayage drivers in Miami are considering adding 48 hours to current
cut off windows for receiving freight due to expected delays from weather and
heavy traffic
Shippers with global supply chains are also closely tracking Typhoon Noru, which
has strengthened and is headed toward central Vietnam after slamming through the
Philippines. Everstream Analytics is warning of major disruptions to industries
such as transportation and agriculture, with the key logistics hub of Da Nang
expected to take a direct hit. Heavy rainfall, flooding and landslides are
expected.
Vietnam closed airports and hundreds of flights were canceled Tuesday, according
to Reuters.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
RECOMMENDED READING:
FEMA’s Hurricane Ian prep: Lots of water and meals to move
The FREIGHTWAVES TOP 500 For-Hire Carriers list includes Schneider (No. 7).
Tags
Agriculture Florida Hurricane Ian Manufacturing Supply chain disruption
Eric Kulisch Follow on Twitter Wednesday, September 28, 2022
4 minutes read
Facebook Twitter LinkedIn Reddit Share via Email
2 COMMENTS
1. Carlos_P says:
Wednesday, September 28, 2022 at 3:20 pm
What is Biden doing to help the southern freedom state residents that the
DNC/CCP Elites hate so much?? Will Biden just ignore Florida because of
politics? Most likely the answer is yes !
Reply
1. C A Shea says:
Thursday, September 29, 2022 at 11:48 am
I guess you were wrong…..again. This is what some Republicans would do
but we are not like you
Reply
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ERIC KULISCH
Eric is the Supply Chain and Air Cargo Editor at FreightWaves. An award-winning
business journalist with extensive experience covering the logistics sector,
Eric spent nearly two years as the Washington, D.C., correspondent for
Automotive News, where he focused on regulatory and policy issues surrounding
autonomous vehicles, mobility, fuel economy and safety. He has won two regional
Gold Medals from the American Society of Business Publication Editors for
government coverage and news analysis, and was voted best for feature writing
and commentary in the Trade/Newsletter category by the D.C. Chapter of the
Society of Professional Journalists. As associate editor at American Shipper
Magazine for more than a decade, he wrote about trade, freight transportation
and supply chains. Eric is based in Portland, Oregon. He can be reached for
comments and tips at ekulisch@freightwaves.com
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