Supply chains throughout the world were hindered by $22.6 billion in losses from cargo theft and $33 billion in losses from the top five natural disasters during the year, according to a new report from the British Standards Institute.
Supply chains throughout the world encountered several challenges throughout 2015, which combined cost them over $55 billion during the year, according to a new report from the British Standards Institute (BSI).
A variety of cross-border issues that threatened supply chains in 2015 were analyzed in BSI’s “2015 Global Supply Chain Intelligence Report,” which was based on data from its Supply Chain Risk Exposure Evaluation Network.
According to the BSI report, these threats included:
• Cargo theft, which resulted in $22.6 billion in losses;
• Extreme weather, which lead to $33 billion in losses just from the top five natural disasters during the year;
• Economic downturns in Argentina, Brazil and China;
• Political transparency issues that drove social unrest in Africa and Central America;
• Increased number of terrorism incidents, which contributed to billions of dollars in losses;
• Poor enforcement of labor regulations, which resulted in child or forced labor in various nations;
• And the influx of migrants in Europe.
Cargo theft in 2015 was prevalent in South Africa, where cargo truck hijackings rose 30 percent year-over-year, while China experienced an increase in vehicle shipment thefts.
Elsewhere, Europe faced disruptions in trade caused by the ISIS terrorist group. Supply chains in Europe were hindered by the attacks in Paris and the terrorist-linked smuggling rings colluding between Spain and the Middle East.
Meanwhile, the Jordanian trucking industry has lost $754 million in revenues since conflict in the Middle East began in 2011.
Looking ahead at 2016, BSI has identified several threats to the global supply chain, which include a projected increase in global cargo theft, expected to grow by $1 million during the year; weather disruptions; global health crises, such as the emerging Zika virus; continued tensions in the South China Sea; ongoing conflict in Syria; the threat of ISIS; and labor unrest in China, which is expected to persist as China’s economy slows.
BSI: Supply chain threats cost shippers over $55b in 2015
