Although the worst has now passed, the effects of Hurricane Beryl are still being felt across the Caribbean, Texas, and the rest of the Gulf of Mexico. In addition to the risk posed to human life by the passage of the Category 5 hurricane through the Atlantic — although the storm had calmed to a Category 1 by the time it made landfall in the US — supply chains across the southern US face serious disruption.
Hurricane Beryl made landfall near Houston, Texas on July 8th. Right now, AccuWeather estimates the total economic loss in the United States from Beryl is between $28 and 32 billion. Losses are proportionately much higher in Caribbean nations like Guadalupe, Barbados, and Mexico.
Research conducted by supply chain management platform operator project44 notes that Hurricane Beryl’s impact on Houston includes power outages affecting millions amid a heatwave, extensive flooding, and disruptions at the Port of Houston with terminals closed for repairs. Trucking operations have seen improved on-time performance post-storm but face reduced daily loads and potential service interruptions as recovery efforts continue. After dropping to zero for several days during the port’s closure, dwell times are expected to spike heavily in the coming week.
Courtesy of project44
Shipping, rail, road, and air freight affected
The majority of vessels affected by Hurricane Beryl are tankers. Texas is a major hub for the US’ gasoline production and refinement, meaning that a major disruption at one of the state’s largest ports will mean the industry is the first to feel impacts of service interruptions.
Houston’s port has also grown dramatically in size and traffic over the past few years, as shippers have used it as an alternative to congested West Coast ports and COVID-19 impacted East Coast ports. This comes at a particularly inopportune time as many retailers are currently in the process of importing holiday goods, marking the beginning of ocean shipping peak season.
Authorities have downgraded Beryl to a tropical depression. However, the storm is nevertheless provoking storm surges, flash flooding, heavy rains, and power outages as it moves inland through Texas. The number of outages in the state on Wednesday morning were still above 1.7 million, according to PowerOutage.us.
The storm cancelled 1,700 flights earlier this week at both George Bush Intercontinental Airport and William P. Hobby Airport, according to Supply Chain Dive. Later in the week, FedEx issued a statement that the storm had rendered Southeast Texas “hazardous”, particularly in the Houston metro area. The extreme weather has affected over 280 zip codes, throwing last mile delivery into chaos in a significant portion of the state.
- Risk & Resilience
