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Estimating economic losses of industry clusters due to port disruptions

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  • Zhang, Yi
  • Lam, Jasmine Siu Lee

Abstract

Seaport operations are highly important for industries which rely heavily on imports and exports. A reliable evaluation of port risks is essential to govern the normal running of seaborne transportation and thus the industrial economies. The occurrence of a breakdown in the trade facilitators, such as ports, will disrupt the smooth flow of supply chains for the industries. The estimation of the economic loss for an industry when a port gets disrupted is a challenging task as the relationship between the port and industry clusters is complex. This study aims to develop a systematic framework for performing economic loss estimation of industry clusters due to port disruptions. The whole risk assessment is split into three stages focusing on the establishment of a network flow model, economic estimations and evaluating risk mitigation strategies. The proposed idea is demonstrated by a case study on Shenzhen port and its related manufacturing industries. A dynamic inventory control strategy used by manufacturers is found to be beneficial for mitigating port disruption risks.

Suggested Citation

  • Zhang, Yi & Lam, Jasmine Siu Lee, 2016. "Estimating economic losses of industry clusters due to port disruptions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 91(C), pages 17-33.
    • Handle: RePEc:eee:transa:v:91:y:2016:i:c:p:17-33
    DOI: 10.1016/j.tra.2016.05.017
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