How Hurricane Ian Is Impacting Supply Chains

By Glenn Koepke

We are squarely in the midst of extreme weather season. Florida and much of the Southeast is grappling with the impact of Hurricane Ian – most tragically the lives that have been lost or forever changed – while disaster in Mexico was mostly averted with Hurricane Orlene slowing to a Category 1. Now, the threat of Typhoon Noru looms over the Philippines while those in the Caribbean brace for the potential of yet another storm.?

In addition to the devastation these weather events cause directly, typically there are major implications for supply chains, with disruptions lasting weeks or months. In the case of Hurricane Ian, expect supply chain woes to last for four to eight weeks.?

As you would expect, once the storm hit, there was a massive reduction in deliveries made to cities in the path of Hurricane Ian, with some metropolitan areas seeing as much as a 60% week-over-week reduction in shipments being delivered. As of October 2, the 7-day average for the number of deliveries made in Florida is down 31% month-over-month. Similarly, in 2021, we saw the number of loads delivered in Louisiana decline by 28% in the wake of Hurricane Ida.

Meanwhile, South Carolina and Georgia also saw some slight impact to supply chains following Hurricane Ian last week. In South Carolina, the 7-day average delivery volume is down 6% week-over-week and down 7% month-over-month. In Georgia, the 7-day average delivery volume is down 6% week-over-week and down 4% month-over-month.

However, the real impact in Southeastern states outside of Florida is downstream from Florida’s supply chain, with the 7-day average shipment volume for loads being picked up from Florida and delivered to Georgia down 30% week-over-week.?

Given the supply chain footprint of companies in the Southeast, much of the freight destined for regions in the path of the hurricane are primarily CPG, F&B, retail and construction supplies. This means that there will continue to be significant slowdown in deliveries from companies in the manufacturing, agricultural and non-essential verticals.?

While the societal impact of Hurricane Ian is devastating and the supply chain disruption is uncomfortable, logistics operators in the region are remarkably resilient. But they’d be wise to not become complacent as severe and unpredictable storms have become the norm. It is critical for companies to have refreshed their disaster recovery plans as they come into the peak weather seasons over the next 5 months in the United States. With peak shipping season ahead for many industries, delivering goods over the next 3 months is critical to hitting company goals for 2023. The only thing predictable in supply chains these days is the unpredictable.