The Tianjin Explosion Impact Analysis

The global supply chain impact of the August 2015 Tianjin, China, explosions extends far beyond that of a significant but routine logistics disruption.

Don ‘t believe official media reports one week after the event indicating that business and Port of Tianjin operations will shortly return to normal.

In the week following the Ruihai International Logistics chemical warehouse explosions, over 100 civilians were reported dead and even more injured.

More than 50 still remained missing. Exposed warehouse chemicals threatened the safety and health of residents and businesses in and around the explosion site. Inbound shipments to the Port of Tianjin - especially those containing hazardous materials - were deterred or rerouted.

More than 30 sites within a 10-mile radius of the explosion site faced supply chain disruption potential.

This report provides critical analysis of the event’s economic relevance and its repercussions on the global supply chain.

Specifically, this report identifies the immediate effects of the Tianjin explosions and projects the short-, mid-, and long-term global supply chain impact of the events.

The report also articulates the factors that will impact recovery speed for the commercial zone and affected companies.

Key factors include:
1) the Chinese response in terms of regulatory actions and its consequences for global commerce; and

2) the supply chain risk management (SCRM) and resiliency strategies and maturity of affected companies.

The analysis concludes that SCRM leaders who take proactive measures to mitigate the risks of the Tianjin event and have crises response playbooks in place, will recover faster, and in doing so, achieve an immediate competitive advantage.