We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Freight bottlenecks, cyber perils are top risks in 2022

Freight bottlenecks, cyber perils are top risks in 2022

Risk of supply chain disruption to remain elevated this year, risk management reports show.

chain-gc5f0f68c8_640.jpg
January 20, 2022
Supply Chain Quarterly Staff
No Comments
Shippers and logistics companies can expect the threat of business interruption from supply chain problems to remain elevated in 2022, as freight congestion, the threat of cyber attacks, and natural disasters weigh heavily on business leaders’ minds.

Two recent risk management reports put the problem into perspective, outlining the major threats to global supply chains in the coming year.

Everstrem Analytics, which provides predictive analytics solutions to companies worldwide, released its Top 5 Supply Chain Risks for 2022 report this week, citing ocean freight bottlenecks and shifting inventory strategies as top issues and emphasizing a growing focus on risk management strategies in the wake of the coronavirus pandemic.

“Pandemic shortages have revealed the global supply chain’s fragile interdependence, pushing companies in every industry toward comprehensive risk assessments and flexible response plans,” Everstream’s CEO Julie Gerdeman said in a statement announcing the report. “We developed the Everstream 2022 Risk Report to provide advice and commentary on where to double down on risk mitigation efforts to keep supply chains stable.”

The company’s top 5 supply chain risks range from environmental to regulatory concerns; they include:

  1. Worldwide Water Instability. Two thirds of the global population will face water shortages by 2025, according to the report. A steady water supply is necessary for production and cooling equipment for pharmaceuticals, tech products, paper, garments, food processing, and other manufacturing industries.
  2. Ocean Freight Bottlenecks. Facing record-low inventory levels, strong consumer demand, and ongoing Covid-19 impacts on logistics and workforces, the global ocean cargo industry will continue to suffer from port congestion and delays in 2022.
  3. The Continuously Changing Workplace. As the Omicron variant of Covid-19 spreads across the world, the risk of infection will force companies to reassess workplace safety and worker compensation to avoid the risk of long-term disruptions from industrial actions or outbreaks of disease.
  4. Just-in-Time Shifts to Just-in Case. As the pandemic exposed flaws in “just in time” inventory systems, businesses have been exploring a shift to the “just in case” model, increasing buffer and safety stocks of critical components or best-selling products.
  5. Increased Regulatory Scrutiny. Sustainability disclosure and reporting requirements for businesses continue to gain momentum amid scrutiny from governments, investors, and customers alike. Further regulations impacting global supply chains will likely be enacted in 2022.
Separately, global insurance carrier and risk consultancy Allianz Global Corporate & Specialty (AGCS) released its Allianz 2022 Risk Barometer this week, outlining the top business risks companies will face in the year ahead. The top three are: cyber incidents (44%), topping the list for only the second time in the survey’s 11-year history; business interruption (42%), dropping to a close second in this year’s report; and natural catastrophes (25%), up from sixth place in 2021.

The annual survey polled 2,650 experts from around the world, including CEOs, risk managers, brokers, and insurance experts, and found that the past 18 months have been a wake-up call for businesses to focus on resilience and transparency. Forty-five percent of those surveyed said recent supply chain disruptions had a considerable impact on their industry.

“’Business interrupted’ will likely remain the key underlying risk theme in 2022,” AGCS CEO Joachim Mueller said in a statement summarizing the report. “For most companies, the biggest fear is not being able to produce their products or deliver their services. 2021 saw unprecedented levels of disruption, caused by various triggers. Crippling cyber-attacks, the supply chain impact from many climate change-related weather events, as well as pandemic-related manufacturing problems and transport bottlenecks wreaked havoc.”

Mueller continued: “This year only promises a gradual easing of the situation, although further Covid-19-related problems cannot be ruled out. Building resilience against the many causes of business interruption is increasingly becoming a competitive advantage for companies.”

Although cyber risks topped the list of concerns globally, in the United States, business interruption ranked first (50%), followed by cyber incidents (37%), and natural disasters (35%0, according to the Allianz report.
Logistics Strategy
KEYWORDS Allianz Everstream Analytics
  • Related Articles

    Report: Food industry seeks to mitigate supply risks

    The top 10 supply chain risks of 2019

    Top 10 Supply Chain Threats: Marc Palazzolo of Kearney on the threat of the freight capacity crunch

Recent Articles by Supply Chain Quarterly Staff

Kearney launches “supply chain institute” as more companies seek resilience plans

Trucking industry lobbies for leverage in transition to zero emissions

Safety will be top of mind on National Forklift Safety Day 2023

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Survey: most Americans unaware that truckers face shortage of parking spaces

  • Best practices in logistics sustainability

  • Supply chain executives not yet seeing expected results from technology investments

  • Postal Service plans to seize items mailed with fake stamps

  • Inflation drops again as interest rate hikes hit home, NRF says

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing