Extreme weather events are identified as the top risk facing supply chains in 2024, according to Everstream Analytics’ annual outlook report. The firm assigns a risk score of 100% to the possibility of extreme weather causing disruptions, following a year of supply chain havoc due to weather-related issues. Examples include heavy rains and flooding in California, Nevada, and Utah causing a 20% to 30% decrease in shipments, as well as smoky conditions from prolonged wildfires in Canada delaying deliveries and reducing visibility.

Everstream recommends monitoring routes for disruption and utilizing predictive weather forecasts and alerts to manage weather-related risks. The report also highlights the potential for shortages of food commodities, with sugar, rubber, and fuel crops being the most at risk. The culmination of factors such as high input prices, farm profitability concerns, increasing protectionism, and extreme weather events contributes to the likelihood of commodity shortages in 2024.

The full list of Everstream’s top five supply chain risks for 2024 includes extreme weather, new environmental regulations, national protectionist measures (particularly between the U.S. and China), the potential for escalating tension over Taiwan, and shortages of agricultural commodities. The report notes the continuing impact of China on supply chain risks, citing the increasing number of firms banned by China and the outsized role China plays in the sourcing base for companies like Apple.

Inspired by: https://www.supplychaindive.com/news/extreme-weather–top-supply-chain-risk-2024-everstream-climate-change-food-shortages/704232/