Due to rising temperatures, droughts, floods and other climatic events, the logistics sector is requiring greater attention and adaptation from companies around the world. The potential for interruptions in the supply chain is sizeable and has become one of the sector’s biggest concerns. These interferences lead to higher operating costs, due to longer and less efficient routes, delays in deliveries, additional fuel consumption, greater dependence on alternative transportation solutions, among others.
“The Amazon River went through a severe drought last year, the Panama Canal was also hit by the same problem and is still facing the consequences. With these types of interruptions, the number of ship crossings are reduced, freight prices rise, insurance costs can also increase due to the risk of damage and loss of cargo, and delays in deliveries. Similarly happens with floods, which can damage essential infrastructure such as roads and bridges, preventing land transportation and causing major disruptions” said Mario Verlado, CEO of the logistics company, MTM Logix.