Although officially a Category 4 storm, Hurricane Michael was just a few miles short of achieving Category 5 status with constant wind velocities of 155 mph and 919 millibar central pressure. The natural disaster has already found its place in the annals of American history as the fourth most devastating hurricane to have ravaged through the USA after Labor Day, Camille and Andrew.
The catastrophe left behind a dismal trail of destruction that ran for miles on end through the heart of Florida. Two people lost their lives. The storm changed its course and headed towards the Carolina states after crossing Georgia. More than 300 counties were forced into states of emergency as power outages and damage to communication and transportation infrastructure became almost omnipresent.
Nearly 400,000 thousand people had to make an escape, either because they were officially told to do so or as a preventive measure. Richmond, Aiken, North Augusta, Columbia and Burke were severely hit with accumulation of debris on roads and highways, disrupted power lines, flooded roads, uprooted trees, broken traffic lights and signs. Suppliers of construction material however were expecting a surge in sales in anticipation of the damage done to houses and buildings.
Impact on Business
Gas and oil – Production units, including rigs and platforms, had to be abandoned and operations had to be stalled. This affected the manufacture of current oil by 42.3 percent and that of natural gas by 31.7 percent. These were substantial numbers not to be ignored, keeping in mind that frequent fracking operations in the area in the recent past had hampered the Gulf Coast’s hegemony in the US oil market. Prolonged power outages were also not uncommon due to infrastructural damage. Fortunately, the location of the refinery installations along the Gulf Coast – a major gasoline, heating oil and jet fuel production center – didn’t fall directly under the storm’s trajectory and remained out of danger and many units in the area were still functional. There was however a temporary surge in fuel rates, although this was just a precautionary measure to offset possible impact on oil production in Mississippi, Alabama and Louisiana.
Cancelled flights and delays – The airports at Atlanta, Florida and Cincinnati generate substantial air traffic. Hundreds of flights had to be cancelled, indirectly impacting commuters to and from connecting cities such as Tallahassee, Panama City, Pensacola, Destin-Fort Walton Beach, Ft Lauderdale and Charlotte. The Florida airport remained non operational on the 10th of October. American Airlines and Delta Airlines suffered substantial losses due to disrupted flight schedules on Thursday, October 11, and were obliged to reschedule the same to the following day free of cost.
Academic Institutions – None of the classes scheduled for October 11 could be conducted at the following institutions:
- USC Aiken
- Georgia Military College
- Westminster Schools of Augusta
- Augusta Prep
- Fox Creek High School
- Edmond Burke Academy
- Georgia Southern University (Closed on Wednesday as well)
- East Georgia State College (Closed on Wednesday as well)
- Augusta Technical College
Classes and activities had to be suspended in all schools in the following counties:
- Aiken
- Edgefield
- Burke
- Columbia
- Richmond
- Barnwell
- Lincoln
- Allendale
- Jefferson County
Healthcare – University Health Care Systems was unable to conduct any of its scheduled elective surgeries and procedures on October 11. Outpatient clinics and departments remained closed. However, thanks to official alerts that were received well in advance, adequate arrangements were made that kept operational disruptions under control.
Insurance Companies – Reinsurance companies such as Axis Capital, Everest Re, Renaissance Re, AIG, Heritage, Federated National, Universal Insurance, HCI and United Insurance were bracing themselves for severe losses as their stocks lay exposed in the line of fire. The same went for other companies such as Allstate, Assurant, Berkshire, Chubb, CNA, National General, Progressive and Travelers. The consolidated impact to the industry was estimated at around $10 billion.
Health and Environmental Hazards – The intensity of the storm and the volume of torrential showers were strong enough to spark a surge in the algae content in coastal waters, part of a seasonal phenomenon known as red tide or algae bloom. This led to increased toxicity levels in seas which seriously affected fish and other sea borne organisms. A variety of health complaints such as asthma, choking, coughs, eye irritation and headaches were also common.
Business Continuity Considerations during Hurricanes
The impact on revenue, not to mention loss and damage to property due to phenomenon such as hurricanes can be catastrophic. In extreme cases, businesses can even be disrupted permanently. Below are listed some suggestions that can safeguard your commercial interests.
Technology
- Backing up data, applications and systems ceaselessly at a safe location that is out of bounds for the disaster
- Cloud or alternate site capabilities that allow your business to restore IT operations.
- Moving important IT staff out of danger zones, thereby allowing them to resume tasks and activities
- Notifying customers and stakeholders about the security measures the organization is taking to safeguard business interests
People
- Access to alternate facilities and ad hoc accommodation options
- Maintaining employees informed on recovery plans and procedures
- Third party contracting for specific operations
Process
- Alternative options for maintaining supply and delivery schedules
- Prior agreements with customers and stakeholders on changes in timelines and production metrics in the event of a disaster
- Implementing and archiving all the necessary steps that would maximize insurance policy coverage.