Hurricane Ian Supply Chain Readjustments
Hurricane Ian made landfall along Florida’s Gulf Coast at 3:15pm on Wednesday, September 28. The powerful Category 4 storm caused widespread damage to Florida’s western coastline. With a maximum sustained wind of 150mph, the Hurricane was only 7 mph shy of Category 5. As a result of the disruptions and damage caused by Hurricane Ian, supply chains in the area will need to readjust in several ways:
Hurricane Ian Effects on Carriers
In preparation for and following the Hurricane, 3 major Ports in Florida have temporarily closed. These ports include Port Tampa Bay, Port Canaveral, and Jacksonville Port Authority. Many vessels were diverted from these ports due to these closures. These vessels and several others will stay on hold until ports re-open in Florida. As a result, you can expect to see delays in cargo arrivals and discharge. Additionally, several cruise ships were also diverted away, with approximately 20,000 passengers expected to spend more time at sea as a result of Hurricane Ian.
A New Logistics Hub for Western Florida Area
Supply chain readjustments after Hurricane Ian will have ongoing effects as carriers rebuild. To aid in rebuilding efforts for the Western Florida area, new Logistics hubs will need to be set up. In order to achieve this, carriers will need adjust their supply chains to shift equipment to the area. Stalled equipment will also need to be pulled out, requiring significant cost and effort. FEMA will provide assistance by providing equipment and supplies, which will be contracted out to carriers rebuilding after Hurricane Ian.
With the ports closed, Rail may need to be used as an alternative to move cargo into the area. Repairs may required along rail lines, as tracks may be broken or flooded due to damage from the Hurricane. As a result, Southeast truckers will have to shift capacity to support the rebuilt routes, which may cause an increase in their rates.
Finally, local agriculture may also be affected by Hurricane Ian, causing other downstream effects beyond the supply chain readjustments we have detailed above. Be sure to follow the SGL Blog for further updates on the long-term effects Hurricane Ian will have on the supply chain.