GLOBAL insurer TT Club has issued an urgent warning for ports, waterways and logistics operations that they need to adapt to climate change.
A white paper which looks at disruptions as a result of climate change and geopolitical factors lists two of Australia’s most vital bulk export hubs, Port Hedland and Dampier in the top 50 most vulnerable ports around the world.
The risk to the two Pilbara ports is from increasing frequency and intensity of cyclones according to the report, which compares aggregated risk across 10,000 samples.
Haskoning UK, are the primary authors and consultants behind the report commissioned and published by TT Club.
The report, Climate-ready Supply Chain: Urgent Guidance for Ports, Waterways and Logistics Operations, outlines a comprehensive framework for port operators to assess vulnerabilities and implement resilience strategies.
It also highlights extreme heat and storm surge conditions faced by Port Hedland and Dampier.
With summer temperatures in the Pilbara routinely exceeding 40°C, the report warns of more frequent and severe heatwaves that could impact both equipment and personnel. Outdoor workers are particularly vulnerable to heat stress and dehydration, prompting calls for shaded rest areas, cooling stations, and revised shift patterns.
The whitepaper identifies rising sea levels and intensified storm activity as key threats to port infrastructure. For low-lying coastal assets like berths and electrical substations, the risk of inundation is growing. TT Club recommends elevating quay walls, reinforcing drainage systems, and installing real-time weather monitoring to mitigate these risks.
Ports along the Pilbara coast are no strangers to tropical cyclones, but the report suggests these events will become more intense and frequent. Damage to cranes, mooring systems, and navigational infrastructure could lead to extended port closures and costly delays in bulk exports.
TT Club urges operators to integrate climate risk into their business strategy, citing global case studies where early adaptation saved billions in future costs. “Adaptation is the toolkit; resilience is the outcome,” the report says, urging ports to be proactive, not only to reduce risk but to enhance reputations and investor confidence.
In a foreword to the white paper, CEO of NSW Ports, Marika Calfas, said adaptation and resilience of global supply chains is an essential consideration for all businesses.
Ms Calfas said the white paper offers a comprehensive and practical framework for understanding climate risks, planning adaptive responses and embedding resilience into the core of business strategy.
“It is essential we distinguish between climate adaptation and climate resilience. Adaptation refers to the specific actions taken to adjust systems, infrastructure and operations in response to actual or anticipated climate impacts—such as elevating quay walls, reinforcing drainage systems, or modifying shift patterns during heatwaves.
“Resilience, by contrast, is the broader capacity of a system to absorb shocks, recover quickly and continue functioning effectively. Adaptation is the toolkit; resilience is the outcome.
“Recent events have made the stakes abundantly clear. In 2024, extreme weather events caused widespread disruption across every continent. In Europe, heatwaves forced factory shutdowns and slashed agricultural yields, with economic losses estimated to exceed $10 billion.
“In Asia, devastating floods in China and India crippled transportation infrastructure and inundated warehouses. In Africa, prolonged droughts in the Horn of Africa disrupted inland logistics and food distribution networks. In the Americas, hurricanes in the Atlantic basin disrupted shipping lanes and port operations, while wildfires in California were projected to have an economic cost of $50 billion and led to widespread air pollution, impacting worker productivity and logistics continuity.
“In New South Wales and Queensland, Australia, between 2022 and 2025 heavy rainfalls and extreme flooding have resulted in widespread infrastructure damage and closures, devastation of communities and freight disruptions both to and from ports. Significant reconstruction of impacted areas and infrastructure has occurred, together with permanent relocation of some residents from low lying areas and continues to occur today. This highlights the vulnerability of even well-developed infrastructure to climate extremes.
“These events are not anomalies; they are signals of a new normal.”