Floods Are Top Risk to Supply Chains in 2025, Everstream Says

Flooding poses the greatest threat to supply chains this year, as warm ocean temperatures fuel more frequent and disruptive storms, including powerful hurricanes, according to a report.

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 US last year, making the nation the most flood-hit globally. Flood insurance claims due to Hurricane Helene, which swamped the southern states in September, could ultimately total $7 billion, according to the the US 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.

Photo: Flood damage is strewn across a road in the aftermath of Hurricane Helene in Asheville, North Carolina. (Photo by Sean Rayford/Getty Images)