Flooding poses the greatest threat to supply chains this year, as warm ocean temperatures fuel more frequent and disruptive storms, including powerful hurricanes.
Ocean temperatures are expected to be elevated in 2025 and beyond, meaning disruptive flood events will continue, supply chain intelligence firm Everstream Analytics wrote in its Annual Risk Report. Flooding accounted for 70% of weather-related disruptions last year, the company said.
“Flooding has become so volatile that even nations with the most sophisticated weather warning systems and infrastructure are caught off guard by the ferocity and speed of sudden flash flood events,” the firm said.
Everstream counted 123 flooding events in the U.S. in 2024, making the nation the most flood-hit globally. Flood insurance claims due to Hurricane Helene — which swamped southern states in September — could ultimately total $7 billion, according to the the U.S. Federal Emergency Management Agency.
Other major threats to supply chains in 2025 identified by Everstream include geopolitical instability, cyber attacks, and trade restrictions on rare metals and minerals. The company draws on a database of supply chain disruptions to analyze past events, identify trends, and make projections.
