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Why do Business Owners, C-suite Leaders, Operations Directors, and Logistics Managers need to understand freight challenges, workarounds, etc. for shipping during a hurricane? Simply put, for risk management, operational continuity, and property protection.
Even though I’ll be covering these three key principles in depth and then some, should you have deeper or more specific questions, you can get the answers you need by calling us at (855) 420-9447. Onward to learning more about shipping and delivery during hurricanes.
There are four areas of risk management to consider when it comes to a hurricane. But first, let’s clearly define disaster risk management (DRM).
DRM “...aims to avoid, lessen, or transfer the adverse effects of hazards through activities and measures for prevention, mitigation, and preparedness.”
Inter-agency Network for Education in Emergencies (INEE)
Before a hurricane strikes, prepare the financial risk mitigation plan. Having one in place will increase the chances of the company’s survival, while also lessening the devastation that a severe storm can leave in its wake.
Focus on things like building and accessing emergency funds. A good rule of thumb is to have enough capital to cover at least six months of core business expenses.
You’ll also want to secure other financing in preparation as well. Consider exploring lines of credit or other financing options that can help with recovery costs.
Do you know if your location(s) is/are in a flood zone? Knowing your flood risk is the first step to understanding the flood risk from a hurricane, and it also can help ensure the company is protected with the proper insurance type(s) as well as the necessary coverage amounts.
One inch of flood water can cause upwards of tens to hundreds of thousands of dollars in property damage. Shipping just prior to, during, or right after a hurricane can bear some serious consequences if not handled properly internally and/or by your emergency management logistics partner, thus making an annual insurance checkup even more requisite.
Start by doing a policy review to check the status of the policy(ies). (I’ll get to hurricane shipping a bit later.) It’s important that there’s no lapse in coverage. Letting a policy expire means a new policy won’t go into effect for 30 days, and that’s no way to mitigate the financial risk of your business due to hurricane-inflicted losses.
Once you’ve confirmed all necessary insurance policies are in place, such as:
…it’s time to confirm the coverage amount of each policy and its extensions are correct for your business’ needs. Considering that flood damage, a major source of hurricane-related losses, is often excluded from commercial property insurance, preparing now can potentially save tens of thousands of dollars on out-of-pocket expenses.
While being underinsured can lead to significant business interruption losses, you also need to think about liability. Not employing loss avoidance measures before a hurricane hits is likely to result in increased stress and anxiety, significant property damage, and even potential injury or death.
Hurricane season is unpredictable, and that unpredictability can cause tensions to rise amongst business relationships: suppliers, vendors, employees, customers, contractors, prospects, and potentially stockholders too. Getting ahead of communicating about your emergency management preparedness is essential because stakeholder trust is fragile during a crisis.
How a business handles logistics pre-, during a, and post-hurricane impacts how it’s perceived. Poor communication, along with unmet delivery expectations, and/or visible supply chain breakdowns can erode trust.
Think of proactive and transparent communication as reputation insurance.
Best practices include providing regular and consistent automated updates, ensuring delay notifications are shared when needed, and even instilling a dedicated crisis-response contact.
Should you experience a carrier issue, know that business relationships will still hold the company accountable. This is why choosing the right Emergency Management Logistic partner is vital. Working with an experienced EML carrier can help mitigate blame and maintain brand credibility.
Companies that showcase their resilience, responsiveness, and preparedness are always the ones that come out ahead after a major hurricane. Consider being prepared for natural disasters a part of your competitive advantage.
Organizations that fail to mitigate risk by not establishing a solid emergency preparedness plan and a top-tier hurricane shipping partnership could endure things like negative reviews, public complaints, and possibly lost customers, prospects, and contracts.
Your reputation insurance can also fair well by employing the strength of social media. This can be another avenue of consistent, proactive communication with stakeholders.
Reputation risk isn’t just business-to-business. In this day and age of heightened social media use across the globe, one viral post about shipping delays or a broken supply chain can derail your risk mitigation because it’s quite literally public and immediate. Instead, take advantage of leveraging it by setting the tone and keeping in contact with the audience.
Hurricane logistics are not only an operational concern, though. Reputation management is a public relations strategy and internal teams like marketing, customer support, and logistics, should all come together in alignment to inform stakeholders of goings-on while upholding the brand image together.
Despite a hurricane, regulations are still in force, be they federal, state, and local. Everything from building codes and occupational safety to transport and environment regulations.
Failing to comply can result in a variety of negative consequences, like:
Let’s discuss employee safety compliance first. Workers can be protected through emergency protocols, evacuation plans, and if needed, safety shutdown procedures, all of which should be clearly documented and routinely updated.
As for property hazards, hurricanes can cause serious compliance risks such as water damage, electrical issues, structural weaknesses, and/or a contaminated work environments. Without proper inspections and remediation efforts before resuming operations, a business could risk injury claims and/or legal exposure.
What other types of safety and compliance do companies need to know about and prepare to manage effectively? Product and material integrity.
For example, if the business deals with perishable goods, working with a committed emergency management logistics provider can help reroute or secure items quickly to prevent exposure and/or spoilage.
Additionally, if sensitive equipment that’s a regulated part of a supply chain is involved in hurricane-related damage, there could be a compliance concern. Being prepared for a natural emergency can help you reclaim your business and rebuild stronger than ever.
We’ve covered all the areas of risk management to be prepared for, now let’s focus on continuity. More specifically, operational planning, business continuity, and supply chain continuity.
When a natural disaster occurs, having a proactive, scenario-based plan is a much better position to be in than scrambling to keep operations running. Let’s face it, hurricane season is annual, not hypothetical. Businesses in coastal or storm-prone areas must always consider these violent storms expected disruptions that require formal planning.
What to include in the operational part of the emergency management preparedness plan?
We can help you nail down these details. Get in touch with Emergency Management Logistics now before it’s too late.
While it’s great to keep the lights on, business continuity is about much more than that. The focus is on safeguarding people and processes. Starting with employee communication, build a foundation so team members know what’s expected. This can include things like the employee protections in place, as well as how and where to work remotely, if possible.
Of course, even if operations are paused, communication with customers must continue. Backup systems or service teams should be in place for customer support needs. That includes data protection. Critical files, systems, cloud access, and business records should all have offsite or redundant backups.
Hurricanes don’t just affect you. They can disrupt an entire region from the port and distribution center to highways and more, rippling across the supply chain. Flexibility in outsourcing and fulfillment options can help with supply chain continuity.
Don’t rely on a single source or route. It makes you vulnerable. Diversify. Add more safety stock. Identify nearby fulfillment support.
Not sure how to diversify your supply chain? Get acquainted with our blog article, “How to Find Alternate Suppliers in Case of Emergency”.
Another way to help reduce supply chain issues is to use partners who can pivot under pressure. As a third-party logistics (3PL) emergency provider, we’re equipped to reroute, store, or expedite goods in real-time when plans change.
As a Business Owner, C-suite Leader, Logistics Director, or Operations Manager, taking ownership of hurricane prep decisions is beyond smart. Protection starts with planning. Get ahead with strategic decision-making, vendor and carrier selection, and asset protection.
Start with smart planning instead of last-minute fixes. For example, weighing short-term costs against long-term losses. This could mean investing in storm-ready infrastructure or emergency freight options. Why? Because cutting corners can become far more expensive after a hurricane strikes.
Remember to document strategic decisions. Not only does this help with insurance and compliance purposes, but it is also an imperative part of your overarching emergency management preparedness plan. It showcases due diligence and can help mitigate liability as well.
Concerning vendor and carrier providers, it’s important to note that not all partners are equipped, or even willing, to weather the storm. Ask hard questions because standard service to many logistics companies does not equal storm-ready emergency management logistics.
Here’s a jumpstart.
Additionally, build these indispensable relationships before the storm. It’s incredibly more difficult to secure help from new partners in the middle of a crisis.
Asset protection is a key pillar of business continuity, so don’t underestimate nature. In preparation of a Category 3, 4, or 5 hurricane, focus on:
There are multiple ways a massive storm causing wind, flooding, power outages, tornadoes, and saltwater corrosion (just to name a few) can destroy materials, products, machinery, and even data. Physically protecting these things by using reinforced storage, raised racks, and sealed containers can literally make or break a business.
Aside from physical protection, transportation needs to be considered as well. Goods could be in transit, and therefore, at risk during a hurricane. Use a carrier that can stage shipments strategically or pause transit safely when needed.
Last but not least, establishments matter too. Whether you own or rent, and have a brick-and-mortar store(s), production facility(ies), warehouse(s), or a distribution center(s), confirming the space(s) is/are compliant with local building codes and are severe storm-hardened is another pressing aspect of emergency logistics preparedness. Otherwise, you may need hurricane-rated temporary storage.
I’ve gone over a lot, so let me provide a quick summary of all the physical logistics components affected by severe storms that are often forgotten in the aftermath of a natural disaster.
If you have goods in transit or need to transport materials or products during a hurricane, it’s important to understand the standard functionalities and capabilities of freight containers. They can be used for shipping, of course, but also for storage.
They’re made to withstand high-winds, as you can image, the high seas get mighty windy during the import shipping process. Being that they’re typically stacked nine high on cargo vessels, their design and structure is paramount to protecting the merchandise inside.
Made with 14-gauge steel used for the corrugated deck, side walls, front, rear, and roof, a standard freight container stands 20 feet x 8 feet x 8 feet 6 inches (length x width x height). That’s might sturdy. But will a shipping container survive a hurricane?
The short answer is, not always. If shipping during a hurricane, work only with a logistics carrier who can offer modified, reinforced, and properly secured cargo containers.
You might ask why would I need a hurricane-ready freight container? Here are three situations where being prepared with the right equipment can trail blaze recovery after the storm.
To easily keep tabs on US port closures, check their statuses. The United States Coast Guard does an excellent job communicating this information. You can also check up on US airport statuses by Flighttrader 24.
After a catastrophic event, get on the road to recovery. Check out “Post-hurricane Recovery for Business and Commerce” for more details.
When traditional carriers are grounded or overwhelmed during a hurricane, emergency logistics providers can fill critical gaps like:
Ensure efficient and reliable emergency management logistics this hurricane season. Be in the driver’s seat with your preparedness by contacting the experts online or calling us now at (855) 420-9447.