Procurement costs soar for manufacturers of iron ore

Procurement workers at global manufacturers are facing higher costs for a range of materials as the price of iron ore spikes due to Cyclone Heidi which hit Port Headland, the world’s most important port for iron ore exports.

The cyclone could have far-reaching implications for the iron ore supply chain, with the closure of the export terminals potentially costing the industry millions of dollars. 

“We’re still closed. It’s not possible to say when we will be able to go in and assess any damage or start to reopen,” Port Hedland Port Authority spokesperson Steed Farrell told the media.

Weather in the region has always been a factor but the last twelve months has seen a dramatic increase in the number of natural disasters impacting global supply chains.

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Alsosee here for further information on the impact the closure will have on supply chains.