Earthquakes, Floods, Epidemics: Is The Supply Chain Strong Enough?


Actual Breaks: Hong Kong Floods, September 2011

Hong Kong, along with the Philippines and southern China, in September 2011 was pummeled by Typhoon Nesat. Winds of up to 100 miles an hour forced the closure of the Hong Kong harbor and airport.

Because of the amount of finished IT products and IT components that are sent via air freight from China via Hong Kong to other parts of the world, system builders were for a few days on the edge of their seats over potential disruptions to their business. Fortunately, the air freight disruption was short-lived, and left only a minor impact. However, it underscored the dependency of the IT industry on overseas manufacturing and the potential harm to business that could result from a disruption in air freight services.

 



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