Climate Change Risks, Costs and Opportunities For Maritime Supply Chains — YRD

Climate Change Risks, Costs and Opportunities For Maritime Supply Chains (2219)

Jack Dyer 1
  1. University of Tasmania, Launceston, TASMANIA, Australia

According to UNCTAD (2014), over 90% of the world’s trade is seaborne; based on the global macroeconomic contributions and connections of seaports, vessels, maritime economic hinterlands and interconnecting supply chains. Globalisation relies on the continuance and facilitation of trade. However, its participants seldom consider what happens when those connections face disruption risks and potential challenges threatening commercial viability and physical survival. Supply chain survival prospects are increasingly threatened by encroaching sea levels, higher temperatures, increased wind velocity, precipitation,  frequencies and intensities of storms, hurricanes, tsunamis, droughts and other climate related influences, that adversely disrupt port, shipping and overall maritime supply chain performance. For all the previous research for ports and shipping, uncertainty exists over defining climate change, resilience; risks and adaptation strategies and  potential consequences for maritime supply chains

This paper's purpose is to identify potential economic implications of climate change along a simple maritime supply chain. It’s proposed methodology approach will establish potential gradual and sudden disruption risks, impact costs and consequences. Its main findings have identified significant direct and indirect costs from maladaptation, from failing to prioritise climate change and opportunity costs of not preparing amidst increasing competition and risk exposure. However, few stakeholders appear to be prioritising the issue lacking specific knowledge over exact consequences, risk aversion and moral hazard over  the need to adapt. In an age of increasing globalisation and vulnerable risk exposure, this paper’s originality and conceptual value establishes adaptation strategies and related opportunities presented by potential climate change for maritime supply chain stakeholders.