In this modern era of volatile competitive market, all the businesses are movingtowards increasing their efficiency and becoming cost effective. These strategiesmake them much more vulnerable to disruptions. There are countless examples fromrecent past which have created havoc in logistics operations. Some of these globalcatastrophe are SARS outbreak of 2002-2003, Asian Tsunami in 2004, 9/11 attacksin 2001, Hurricane Katrina and Rina in 2005, etc. Apart from these, milder catastrophes such as strikes, change in government regulation, communal riots haveall contributed to smaller or larger amount of supply chain disruption creating a bigchallenge for global logistics operations (Stecke, 2009).McKinnon (2011) from its World Economic Forum meet summarized the challengesfaced by global logistics as delineated below:a)
Global supply chain exposure to systemic risk:
The high competitionamong businesses has forced them to adopt strategies (minimal inventoryand limited contingency planning) that maximises their efficiency and speedso as to compete as cost effectively as possible. These strategies have madethem much more vulnerable to disruptions such as caused by climatic,terrorism, cyber, financial, etc (Stecke, 2009).b)
Lack of logistics & transport infrastructure especially in developingcountries:
Developing countries do not have appropriate high-tech logisticsfacilities which hinder the efficiency of logistics processes.c)
Adjusting to pattern in global trade
: Due to competitive, there has beenchange in ways businesses are conducted. For instances production facilitieshave shifted to developing countries who have to adjust according to developbetter logistics facilities.d)
Pressure to reduce pollution and developing environment friendlylogistics system:
Due to government regulations in some countries, there isimmense pressure on organisations to reduce Greenhouse gas emission.
e) Lack of skilled workers in logistics:
Due to advancements made intechnology of logistics sector, there is requirement of skilled labour in thisarea.
Lack of logistical collaborations among organisations:
Due to competition,
there is pressure on organisation‟s to improve on its economic and
environmental front, which is only feasible if there is logistical collaborationbetween them.This study will attempt to decipher the role of terrorism in global logistics. Terrorismis a vast area to cover and hence maritime terrorism was covered more extensively.It focuses on issues related to cause and effects of terrorism, its presence &magnitude, mitigation approaches adopted by government by creating regulationsand mitigation adopted by organisation on their individual level. Finally, it tries toidentify best method for mitigating risks associated with terrorism.