How hurricanes affect shipping and logistics

How hurricanes affect shipping and logistics
How hurricanes affect shipping and logistics

Be in awe of the fanatical of all storm chasers. The clean-up operation began shortly thereafter. But that's expected to last for a while -- if not longer. On land, the cleanup can be both physical and emotional for some. But on land, companies continue to struggle to restore some sort of logistical normalcy.

Hurricane Precautions

Hurricane Irma was one of the five strongest hurricanes on record in the Atlantic. Thanks to highly sophisticated weather forecasting technology, early warnings are issued. Given their seriousness, the recommended precautions are noted. Shipping operations ceased, with suspected operations all the way to the South Carolina port. Cruise ships such as Carnival Corp and Royal Caribbean Lines canceled various sailings. All this is to avoid the wrath of nature.

It is better to be safe than sorry, and shipping operators who have the ability to divert their ships away from danger should definitely do so. But this has considerable financial implications. An 8,000 container ship can consume up to 225 tons of fuel per day. For cruise ships, the number could be as high as 250. That said, even minimal diversions can be costly to operators.

Logistics disruption caused by hurricane

Despite all the precautions taken for Irma, delays are bound to be disruptive. Not only the maritime industry, but the logistics industry as a whole. it has. Irma After the past few days, intermodal shippers continue to face delays for cargoes that need to be transported by rail through the southeastern United States. Even industry giants like Amazon have struggled to deliver on the two-day delivery promises it promises customers.

Other inconveniences include passing less cargo through the port or finding yourself having to store additional cargo. Thanks to shippers, many ports have waived or reduced delay fees. Certain operators also stopped their demurrage and demurrage clocks as Irma approached and restarted them when ports began to reopen. But even so, shippers may still find themselves having to pay truckers additional freight, storage fees, or possibly make other plans to get their goods to other ports.