Tianjin Explosions to Affect Supply Chains for a While

The Chinese port will be dealing with the logistical impact of the deadly explosions for a long time to come

Wall Street Journal

Sept. 8, 2015—The deadly explosions that rocked Tianjin could create logistical delays and other supply chain problems for months to come, even as operations at the port itself return to normal, according to a new report by Resilinc, a supply chain technology firm.

Day-to-day operations have largely resumed at Tianjin’s port, roughly a month after two explosions killed over 100 people and caused widespread damage. However, Resilinc found a number of factors that will have a lasting impact on companies with supply chains tied to Tainjin. Chief among them: uncertainty over how China’s government will respond to the incident, which was caused by the improper storage of hazardous chemicals and is still being investigated.

Shippers of materials classified as hazardous should expect delays from additional scrutiny of their cargo, and stricter regulation and punishments, Resilinc said.

Lasting environmental impact, such as contamination in the water or air, could also cause many residents to flee the area permanently, which can result in labor shortages, Resilinc said. Concerns over environmental effects in the area surrounding the site of the blasts have caused transportation disruptions and school closures, preventing people from going to work, and requiring that local truck resources be allocated to clearing debris.

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