The global supply chain will suffer as ports face ever-mounting threats from sea-level rise, extreme weather and shifting regulations, with billions of pounds in trade and infrastructure already at risk each year, according to a new report.
Developed by global transport and logistics insurer TT Club, in collaboration with international engineering consultancy Haskoning, the Urgent Guidance for Ports, Waterways and Logistics Operations report takes a deep dive into the potential consequences of climate change on ports and supply chains, and includes a practical roadmap to strengthen climate resilience in maritime operations.
It warns that nearly 90% of the world’s 3,700 major ports are exposed to damaging climate hazards. It points to how hurricanes, flooding, heatwaves and shifting ocean currents are all signifiers of climate change, which threaten vital port assets as well as the global supply chains that depend on them.
The impact of these events is profound and widespread across the supply chain. High winds and storm surges, resulting in severe wave conditions, can damage or destroy docks and piers, leading to costly repairs or replacements. Flooding can damage goods stored in warehouses and affect below-ground electrical and IT infrastructure, leading to financial losses and the need for repairs. Meanwhile access routes to and from the port can be affected, disrupting the flow of goods and increasing repair costs.
Data shows that extreme climate events are inevitable rather than hypothetical, and urgent action is therefore essential, the report warns, adding that delaying action only risks compounding damage and escalating costs.
It calls for immediate proactive planning to not only prevent significant losses but to also secure long-term competitiveness and operational continuity.
To this end, the report sets out immediate measures and long-term solutions to safeguard infrastructure, maintain operational continuity and ensure economic stability in the face of climate change.
“Ports are the lifeblood of global trade, but they are also on the frontlines of climate change impact,” said Marika Calfas, TT Club board member.
She added: “This guidance provides practical steps for understanding climate risks, planning adaptive responses and embedding resilience into the core of business strategy.”
The report draws on historical case studies, including the shutdown of Gulf Coast ports during Hurricane Katrina, and the $12bn in maritime damages from Japan’s 2011 tsunami, to evidence the severe economic and social impacts when resilience measures are inadequate.
Neil Dalus, TT Club risk assessment manager, added: “Climate change is no longer a distant challenge – it is a pressing operational reality.
“Inaction could result in soaring repair costs, prolonged disruptions and lost revenue. Proactive adaptation, on the other hand, could deliver long-term savings, operational security and reputational benefits.”
Alongside the risks, the report also highlights opportunities. By leveraging real-time climate data, IoT-enabled monitoring and AI-powered predictive analytics, ports can improve asset performance, reduce downtime and strengthen emergency preparedness.
It concludes that investments in sustainable infrastructure, from renewable energy integration to natural barriers, can protect assets while improving operational efficiency and supporting decarbonisation goals.
It points to examples including the Port of Rotterdam, which has invested in flood defences and other adaptation measures that could save up to €1bn in potential damage costs by 2050.
Amy Savage, Haskoning technical director of climate risk and adaptation, commented: “Climate adaptation should not be seen as a financial burden, but as a strategic investment in the long-term competitiveness of ports.
“By integrating engineering expertise with cutting-edge digital technologies, we can create adaptive, future-proof solutions that mitigate risks and unlock value throughout the supply chain.”
