Brace for supply chain risks from conflict and climate change in 2024

SUPPLY chains are set to face continued uncertainty in 2024, on the back of geopolitical and environmental risks. Companies and consumers should prepare for disruption, but hopefully be in a better position to handle surprises – thanks to hard-earned lessons learnt from the pandemic years.

Recent attacks in the Red Sea have raised fresh fears of shipping delays. Since the eruption of the Israel-Gaza conflict in October, Yemen’s Houthi rebels have increased their attacks on vessels in the Red Sea.

Major shipping companies such as Maersk were forced to avoid the Suez Canal – which accounts for over a tenth of the world’s shipping traffic – and go on a much longer route around the Cape of Good Hope. As a result of the conflict, ports in Singapore and Malaysia could come under “massive pressures”, one veteran shipping analyst has warned.