The U.S. National Weather Service forecasts a greater than 90% chance of a very strong El Niño this year, potentially the strongest since 1950, dubbed a ‘Super’ El Niño. This event could cause trillions in economic damage, significantly impacting global supply chains.
Energy markets face further strain from geopolitical conflicts and weather disruptions, potentially driving up oil and gas prices. Food commodities, already affected by fertilizer inflation, will see increased pressure on staples like rice, maize, and wheat due to droughts and extreme heat. Global shipping will be disrupted by altered weather patterns, increased fuel costs, and Panama Canal vulnerabilities. The AI boom’s demand for energy and water will stress infrastructure, impacting silicon chip production and mining.
Businesses must diversify energy, build supply chain slack, and regionalize operations to mitigate these cascading risks.
Read my full article on Forbes here.
Edgewood Insights 