TT Club Warns Climate Change Threatens Supply Chains

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  • A new whitepaper highlights how climate change poses severe risks to ports, terminals, and logistics operations worldwide.
  • Extreme weather events, infrastructure damage, and operational disruptions threaten global trade and economic stability.
  • Practical, short-term, and long-term adaptation measures are urgently needed to build climate-ready supply chains.

A recent whitepaper has outlined the urgent climate-related threats facing ports, terminals, and logistics operations, which form the backbone of international trade. While the global supply chain is evolving with new technology and industry consolidation, it is also becoming increasingly vulnerable to disruptions caused by climate change and geopolitical uncertainties.

Ports and logistics hubs, essential for economic output, face rising exposure to extreme weather events, infrastructure damage, and operational risks. The consequences are not only physical but also financial, with recent studies estimating that over $122 billion in annual economic activity is at risk — a figure greater than the GDP of some nations.

Infrastructure Vulnerabilities

Climate change is intensifying the frequency and severity of storms, floods, and hurricanes. High winds and storm surges can destroy docks and piers, while flooding can damage goods in warehouses and disrupt critical electrical and IT systems. Even access routes leading to ports may become unusable, causing further delays and costly repairs.

Operational Disruptions

Severe weather often forces ports to shut down temporarily, halting cargo movement and leading to costly supply chain delays. Loading and unloading activities may be disrupted, while delayed vessel arrivals and departures could result in penalties for late deliveries. In many cases, ports must rely on temporary measures such as pumps and sandbags, further adding to operating costs.

Practical and Short-Term Measures

Immediate steps can help mitigate risks. Thorough risk assessments, staff training, and well-prepared emergency response plans are essential. At the infrastructure level, ports may need to strengthen quay walls, install flood defenses, and elevate critical systems to withstand extreme conditions. Adopting green solutions, such as permeable pavements and rain gardens, can improve stormwater management, while renewable energy investments — including solar and wind — can both power operations and reduce emissions. Emerging technologies like IoT sensors also allow for real-time monitoring of weather, sea levels, and infrastructure integrity.

Long-Term Adaptation Strategies

Future resilience will require comprehensive climate adaptation plans supported by Decision Support Systems (DSS). Proactive measures, such as raising docks and relocating critical assets, will be essential in managing sea-level rise. Incorporating resilient design into new projects — using durable materials and engineering practices — can help ports withstand harsher conditions. Collaboration across governments, research institutions, and other ports will also play a pivotal role, enabling knowledge-sharing and collective action to strengthen climate readiness.

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Source: TT Club