Top 5 supply chain risks in 2025

Good supply chain managers are always looking down the road at what’s ahead. But it’s hard to see beyond the next corner. The interconnected nature of modern global supply chains and the complexities of international trade leave logistics vulnerable to a wide array of risks.

That’s why we’re fully committed to state-of-the-art risk analysis, working hand-in-hand with Everstream Analytics – a global leader in supply chain insights and risk analytics. As strategic partners, they provide the risk and predictive analysis we need to be ready for the twists and turns the road may take.

So, what are the risks giving analysts the most concern this year? Here’s a summary of Everstream’s top 5 supply chain risks in 2025. You’ll find a link to the full 2025 Risk Report at the end.

We see it on the news every day, so it shouldn’t be surprising to see climate change in the #1 spot on Everstream’s top 5 list of supply chain risks. Nowadays, natural disasters are coming fast and furious, overwhelming even countries with sophisticated infrastructure and weather warning systems. The catastrophic flooding in Appalachia (US) and Valencia (Spain) in the autumn of 2024 are two recent tragic examples.

Floods accounted for 70% of weather-related risks in 2024. The unrelenting rise in ocean temperatures suggests that the problem will only get worse, leaving many supply chains literally drowning in climate change. Everstream predicts that most companies will face disruption from ever-more-frequent weather events, both large and small.

War is bad business, and the proliferation of both military and trade wars around the world presents a real risk to global supply chains. Everstream sees multiple geopolitical threats to trade networks and industries worldwide, including logistics, transportation, and manufacturing. From tensions in the Middle East and the Russia-Ukraine conflict to South China Sea disputes and proposed tariff increases, it will be nearly impossible for any business to avoid the impact on logistics and supply chains.

Closely monitoring developments and understanding suppliers in every country and tier will put companies in the best position to respond to disruption when necessary. 

An exploding reliance on cloud computing and artificial intelligence in supply chains is providing good opportunities to bad actors. Cybercriminals are taking advantage of the rapid spread of connected devices and weak security protocols to get their foot into new back doors.

In 2025, the biggest cyberattack risks will most likely originate with sub-tier suppliers, where criminals can more easily exploit vulnerabilities before working their way up to Tier 1 suppliers through software links. We face threats across the supply chain in logistics, but as third-party logistics providers (3PLs), we must be especially vigilant.

The growing demand and shrinking supply of rare metals and minerals is the fourth risk Everstream has on its radar. With new tariffs and sanctions in today’s politically charged atmosphere and a lack of supplier diversity, these commodities will be more expensive and harder to obtain than ever.

The challenge will be diversifying the supply chain and mapping sub-tier networks to stay ahead of unanticipated disruptions.

There is growing intolerance for the poor working conditions of low-wage workers in developing countries, reflected in a wave of recent legislation across the United States, Canada, Mexico, and Europe. This is creating positive momentum for similar legislation in other countries.

Everstream predicts this growing crackdown on forced labor will pressure companies in relevant industries to cut ties with suppliers violating human rights and find alternatives. But that will come with its own set of challenges, as many emerging economies still lack adequate labor laws or enforcement policies.

These risks are not entirely unavoidable. Although risks like weather events are pretty much a given, being proactive and preparing for the worst can go far to mitigate the fallout. The adage “failing to plan is planning to fail” comes to mind.

That’s why we partner with Everstream Analytics and share the goal of building better supply chains. Everstream gives us the risk and predictive insights to make our supply chains smarter and more sustainable.

We recommend supply chain diversification as a top priority and long-term strategy because it makes them considerably more resilient. Follow the links below to learn more.