When containers stop, economies stop

15 Aug When containers stop, economies stop

A 2012 report by Chatham House says that the global economy—already vulnerable to sudden shocks following the global financial crisis—could withstand widespread disruption from a natural disaster or attack for only a week, since governments and businesses are not adequately prepared to deal with unexpected events. The report says that up to 30 percent of developed countries’ gross domestic product could be directly threatened by such crises, especially in the manufacturing sector. Costs could escalate quickly should transport or major production hubs be disrupted for more than a few days. A breach of container security would cause these circumstances to come about. The cascade of effects that would follow such an event would include the shutting down of manufacturing plants, the emptying of retail shelves, and employees being thrown out of work—global economic collapse no less.