We’re moving from the post-pandemic calm to another tumultuous year for global trade. According to Everstream Analytics’ just-released annual risk report, several challenges are brewing. These challenges include weather, drought, geopolitical instability, cyberattacks, a return to commodity shortages, environmental regulations, and the trade war between the U.S. and China.
Interesting facts in the report include:
- The U.S. experiences a billion-dollar weather event every three weeks compared to every four months in the 1980s
- Drought-imposed restrictions at the Panama Canal for lower capacity limits and longer wait times
- Rerouting cargo through the Suez Canal faces a challenge in the Red Sea, where Houthi rebels are escalating attacks, so many vessels are canceling their journeys
- The Horn of Africa is heating up, while Taiwan is the next potential hotspot
- Supply-chain cyberattacks are at a five-year high (2023)
- Commodity shortages resulting from extreme weather events
- S./China trade war restrictions are increasing
- More strict environmental regulations and net-zero policies will disrupt supply chains
It’s difficult to see any breaks in the challenges coming this year.
