USA: Increase in extreme weather negatively influences the global supply chain, report finds

In Europe, for years, flooding disasters have been one of the leading causes of economic impacts, but in the summer of 2025, drought, heat and flash floods resulted in almost $50 billion in losses.

Recently, the agricultural supply chain has been experiencing the worst impacts from the increase of extreme weather.

Just last year, the global wheat harvest was 18% below its early average due to droughts in major producing areas causing food prices to increase.

The decline in the agriculture supply chain has also influenced pharmaceuticals, skincare, biofuels, certain resin and plastic products.

"It goes far beyond food and beverages, things that we eat. It also goes into every little aspect within the supply chain," Davis said.

The continuous disruption to the agriculture supply chain will result in price hikes as different industries compete for the same limited product.

This was evident with cacao in late 2024, when many markets faced a high demand for the commodity. Prices rose by almost 300% due to a decline in production caused by devastating weather, combined with the surge in demand.

Eversteam Analytics predict that this is only going to get worse in 2026.

"When you tend to get any kind of issues where you have scarcity in commodities and scarcity in products, then it becomes a situation where all of these sectors will compete to get those commodities and those products," Davis said.

The company preaches that traditional weather risk management is no longer practical in today's environment.

Everstream Analytics said that companies must invest in advanced climate modeling and real-time weather monitoring systems in order to be proactive when it comes to extreme weather.

"Building climate resilience requires fundamental changes to supply chain design, including geographic diversification, increased inventory buffers, and flexible logistics networks that can rapidly reroute around weather-impacted areas." Everstream Analytics states in the report.