News / War, weather and global tension the chief threats to 2025 supply chains

© Yaroslaf

Logistics professionals have their work cut out this year as the highest-listed threats identified in the World Economic Forum’s (WEF) Global Risk Report 2025 augur disruption to supply chains.  

“Disruption to a systemically important supply chain” is risk number 18 of the top 33 in yesterday’s report, compiled from responses from 900 global risk experts, policymakers and industry leaders surveyed in September and October. 

The three risks deemed most-pressing were war, extreme weather events and geoeconomic confrontation, with “diversifying supply chains” listed as one “action for today” that could be done to mitigate them. Other preventative actions include supporting global treaties and expanding the role of regional organisations in managing tensions. 

“For organisations, one of the big lessons taken from the ongoing conflicts is the need for supply chain resilience and diversification,” says the report.  “With geopolitical volatility likely to remain high over the next two years, organisational investment in geopolitical risk foresight and risk management is a must.” 

The WEF advises companies to consider whether their suppliers and supply routes are vulnerable to conflicts, noting that when the level of uncertainty is high, “scenario planning exercises can be a valuable tool to help organisations prepare for a range of different outcomes”. 

It also warns businesses to consider the “reputational risks” of partnering or doing business with counterparts that are in any way party to a conflict. 

Indeed, The Loadstar has reported how Kuehne+Nagel was targeted by activist group Palestine Action for providing insurance for Elbit Systems, a firm that transports Israeli weapons used in Gaza. 

Risk number four, which could also threaten supply chains, is “misinformation and disinformation”. It says: “Algorithms, especially complex machine-learning models, can also be an entry point for cyberattacks that use disinformation.”

The WEF added: “Given the reliance of algorithms on third-party data sources, software libraries and network infrastructures, threat actors can compromise the supply chain to manipulate algorithms and cause widespread damage.” 

Disruption to a systemically important supply chain is defined by the WEF as an event having “an impact on the global economy, financial markets or society, leading to an abrupt shock to the supply and demand of systemically important goods and services at a global scale”. 

This includes, it added, but is not limited to, energy, technological hardware, medical supplies and fast-moving consumer goods.