Climate Change Disrupting the Global Supply Chain: Impacts and Solutions

As the Covid pandemic continues to disrupt the global supply chain, the threat of climate change is becoming increasingly apparent. From floods to wildfires, extreme weather is hammering ports, highways, and factories worldwide, and experts warn these climate-induced disruptions will only get worse. Last year alone, the Texas freeze caused the worst involuntary energy blackout in U.S. history, while heavy rainfall and snowmelt caused some banks of the Rhine River to burst, triggering a halt in river shipping for several days. Flooding in central China disrupted supply chains for commodities and forced the closure of a Nissan plant, while Hurricane Ida damaged vital industrial installations and forced a diversion of trucks for use in relief aid. Fires in British Columbia caused a transportation choke point at Fraser Canyon to close, while an atmospheric river caused severe flooding in the province, severing crucial railroad and highway links to Canada’s largest port. And in December, a typhoon caused what was called “arguably the worst flooding in history” in Malaysia, creating a break in the semiconductor supply chain.

These disruptions are only a taste of what’s to come as the world warms and sea levels rise. Scientists warn that ports, rail lines, highways, and other transportation and supply infrastructure will be threatened by increases in sea level of an estimated 2 to 6 feet — and perhaps more — by 2100. It’s clear that climate change is a slow-moving crisis that will require fundamental changes to the global supply chain. Companies must begin to plan for the future and invest in resilient infrastructure to ensure that the global supply chain can withstand the impacts of climate change.