Encanto Potash Corp V.EPO.H

Hurricane

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Globe says Potash Corp. feels gusts from hurricane Irma

 

2017-09-12 07:53 ET - In the News

 

The Globe and Mail reports in its Tuesday edition that a Canadian fertilizer miner might seem comfortably insulated from the hurricanes hitting the United States. The Globe's Andrew Willis writes, however, that in a sign of just how global Canadian businesses have become, hurricane Harvey turned out to be a headache for Potash Corp. of Saskatchewan. Hurricane Irma shut down phosphate mines in Florida owned by Mosaic over the weekend, which in turn may fuel higher prices for fertilizer sold by rival Potash Corp. The low-level disruption that Harvey and Irma caused at a seemingly distant company such as Potash Corp. demonstrates the increasing economic reach of a disaster. Supply chains are now long, stretching across continents or around the world. Most companies pared the number of suppliers they use in an effort to cut costs, which leaves them vulnerable if one of those suppliers shuts down. Big business relies on sales to customers around the world. Most companies pared the number of suppliers they use in an effort to cut costs, which leaves them vulnerable if one of those suppliers shuts down. As recent storms show, seemingly distant events now matter. The larger lesson from the storms is their knock-on impact.