Wildfires raging across Southern California this week pose significant risks to supply chains throughout the region, according to an analysis by Exiger, a McLean, Virginia-based risk and compliance management provider.
Since first sparking on January 7, the fires have taken advantage of dry conditions and howling Santa Ana winds to spread fast, Exiger said. To date, widespread fires have been burning in Los Angeles County, the Inland Empire, Orange County, and Ventura County. Affected areas include the Pacific Palisades, Malibu, Altadena, Pasadena, and Sylmar.
The flames have already caused at least 24 deaths; damaged or destroyed more than 12,000 homes, businesses, and other buildings; and forced at least 153,000 people to evacuate from affected areas, the report said. In addition to that tragic loss of life and inestimable financial losses from destroyed buildings, the fires are putting manufacturing supply chains at significant risk, due to California’s role as a vital nexus for transportation, technology, and industrial machinery, Exiger said.
The firm is warning that businesses should anticipate delays, shortages, and increased operational costs. Those will come because power outages, evacuations, and closures of key transportation routes have disrupted production and distribution networks in the Southern California region and beyond.
While the Ports of Long Beach and Los Angeles are outside the state’s Red Flag Warning zone, transportation routes to and from those huge hubs pass through affected areas, potentially disrupting access to both the ports and to Los Angeles International airport (LAX).
To bring help to those in need, the disaster recovery nonprofit American Logistics Aid Network (ALAN) has been in touch with survivor support groups in the area. Initial reports show that local relief organizations currently have the supplies they require for the short term, thanks to generous support from nearby communities.
In fact, those organizations are already being logistically challenged by that outpouring of donations, all of which needed to be sorted, categorized and organized in order to get them ready for distribution. So ALAN is working to train the groups on just-in-time guidance through platforms like hosting a California fires logistics call for non-profit organizations.
According to ALAN Executive Director Kathy Fulton, supply chain providers can help by making donations or by contacting ALAN directly to donate logistics capabilities like warehouse space, trucks, equipment, or supplies. “On a final note, please don’t try to send supplies to Southern California right now. Relief organizations and disaster survivors have no place to store or keep them – and trying to handle the wave of incoming products can turn into a major challenge at a time when they’re dealing with other priorities,” Fulton said in an email. “On behalf of all of us at ALAN, thank you for being part of our support system.”
