Extreme Weather is 2024's Top Supply Chain Risk: EverStream
Extreme weather events are the top risk facing supply chains in 2024, according to an annual outlook report from Everstream Analytics. The firm attached a risk score of 100% to the possibility of extreme weather causing supply chain disruption. That assessment follows a year where weather caused havoc for supply chains, from crop failures to slowdowns on major shipping channels. Among other examples, heavy rains and flooding in California, Nevada and Utah in spring of 2023 caused a 20% to 30% decrease in shipments in areas where transportation systems were disrupted, according to Everstream’s analysis. To manage weather risks, Everstream recommends firms monitor routes for disruption and look to predictive weather forecasts and alerts. Extreme weather also factors into Everstream’s Number 5 supply chain risk in 2024: the potential for shortages of food commodities. Most at risk are sugar, rubber and fuel crops. In various ways, sourcing from China was a factor throughout Everstream’s entire risk list for the previous year. In this year’s report, Everstream pointed to the skyrocketing number of firms banned by China starting in 2017, which is continuing to ascend in 2023. The analytics firm also pointed to the continued outsized role China plays in the sourcing base for companies, including Apple. Learn more on supplychaindive.com.