As we enter the peak shipping season, businesses need to be aware of the impact La Niña can have on their supply chains. La Niña is a weather phenomenon that results in cooler than average ocean temperatures in the central and eastern Pacific Ocean. This can lead to heavy rains and floods in some areas, and droughts in others.
While La Niña can have a significant impact on global weather patterns, it is particularly important for businesses that rely on shipping to move goods around the world. Heavy rains and floods can result in port closures, which can cause delays in shipments. Droughts can also lead to disruptions in freight forwarding, as roads and railways may be damaged by the lack of rain.
Early Warning Signs
Locally in Australia, the Bureau of Meteorology has already indicated there is at least a 70% likelihood of La Niña weather patterns forming. This is three times the usual chance, indicating a high probability of “above-average rainfall for northern and eastern Australia during spring and summer”. The likelihood of a La Niña event is currently at its highest since March 2010.
Potential Impacts of La Niña
A La Niña event can have a significant impact on global supply chains. The increased rainfall and resulting floods can damage infrastructure, disrupt transportation, and delay or halt production.
In 2010, the last major La Niña event, Australia experienced its wettest two-year period on record. This led to widespread flooding and billions of dollars in damage to infrastructure. 2022 also marks the third Spring season in a row where Australia has faced unusually high rainfall, and if the last 2 seasons are any indication of potential impacts, then local shipping and deliveries on the busiest freight routes may take at least 9-10% longer due to La Niña weather events.
Not only will these potential shipping delays test consumer tolerance, but they will also be added pressure on businesses that are relying on supply chains that are still recovering from the global COVID-19 pandemic and widespread skilled staff shortages.
Getting Prepared
There are a few things businesses can do to prepare for the possibility of a La Niña event:
- Review your supply chain. Take a close look at your supply chain to identify potential vulnerabilities. If possible, consider diversifying your suppliers or using multiple transportation methods to reduce the risk of delays.
- Monitor weather conditions. Stay up to date on the latest weather forecasts and advisories. This will help you make informed decisions about when and how to ship goods for local destinations.
- Plan for disruptions. Build some flexibility into your plans in case of disruptions. Have a contingency plan in place so you can continue operations even if your shipments are delayed. Securing additional stock early can potentially avoid stocking issues and lost revenue.
- Communicate with your customers. Keep your customers informed of any potential delays in shipments. This will help manage their expectations and avoid any misunderstandings, particularly as many businesses and consumers work toward the Christmas deadline.
By being aware of the potential impacts of a La Niña event and taking steps to prepare, businesses can minimize the disruptions to their supply chains.
Stockwell International is experienced at navigating potentially disruptive weather events like La Niña, and have a range of strategies to reduce the impact delays and congestion may have on your business. Get in touch with our team today to discuss our full range of services to support you.
