A new research paper Systemic risks from climate-related disruptions at ports, published by authors from Oxford University Environmental Change Institute, indicates that severe weather conditions can have a significant impact on the global economy. Potentially causing a loss of more than $122 billion, with international trade accounting for $81 billion of that amount. Even if local ports remain unaffected, the ripple effect of these events can still be felt across the world. Sixty per cent of the $81 billion at risk is related to maritime trade and is vulnerable to cross-border effects. Regions such as Northern Europe, the western US, southern Australia, the Middle East, and West Africa are particularly susceptible.
A previous analysis “Multi-hazard” by the same researchers had already estimated that physical damages to ports from storms, floods and other climatic extremes can add up to almost $8 billion of losses each year.
Read the full research briefing article from the University of Oxford