Another Arctic blast is gripping the Northeast, a reminder that extreme weather is no longer an occasional event for supply chains. From trucking slowdowns to port congestion, disruptions now ripple faster and last longer. John Lash, Group VP of Product Strategy at e2open, a WiseTech Global company, breaks down where supply chains are most vulnerable and what leaders can do to build resilience.
Supply Chain 24/7: Why does extreme weather feel like a constant supply chain risk now instead of a seasonal issue?
John Lash: What used to be occasional, localized, and predictably seasonal events are now more frequent, longer-lasting, and more geographically widespread. This creates a sense that we’re always just one storm away from a supply chain disruption. To make matters worse, greater unpredictability and intensity of extreme weather make it harder to anticipate and more costly when it hits. These days, deep freezes, heat waves, hurricanes, atmospheric rivers, and wildfires form earlier, last longer, and pack a bigger punch than they did a decade ago. It’s not uncommon to have several hundred-year storms hit within days or weeks of each other. Instead of planning for a few storms a year, companies now operate in a new world reality where some part of their extended supply chain network is almost always under weather stress.
SC247: What is usually the first part of the supply chain to break during a major weather event?
JL: The first part of the supply chain to break is typically local trucking and drayage. Why? Because transportation depends on roads, drivers, and equipment – all of which are immediately affected by extreme weather. While a direct hit of a hurricane or wildfire on a factory or warehouse can be catastrophic, in most cases, weather tends to stop freight movements well before factories or warehouses are forced to shut down.
SC247: How is extreme weather reshaping the way companies think about agriculture and food transportation?
JL: Greater and more frequent deep freezes and heat waves are changing the kind of equipment and packaging required to move goods. Many ag and food products, such as vegetables, fruits, milk, beverages, and chocolate, are susceptible to damage below freezing or above 90°F. The result is a higher demand for temperature protection over more months of the year for a greater number of lanes, including reefers or heated trailers with active control, as well as passive measures such as insulated trailers and thermal packaging. When bad weather delays transportation, the problem compounds by increasing the time freight is exposed to extreme temperatures, making it even more important to use temperature control.
SC247: Where do transportation costs rise the fastest during storms or prolonged cold snaps?
JL: Transportation costs rise fastest in regions where weather systems suddenly tighten capacity or close lanes. When a polar vortex hits, heavy snowfall slows trucks, highway closures cause detours, and sometimes force carriers to avoid the region entirely. In high-density areas like the Northeast and the Midwest – both of which saw particularly harsh winters this year – the effects of disruptions are amplified. This led to capacity shortages, especially for freight requiring temperature-controlled equipment, and to more freight being pushed to higher-priced spot markets. Whereas in mountain regions, limited alternate routes tend to magnify the impact of road closures, requiring long detours and surcharges.
SC247: How exposed are companies that rely on single-source suppliers in weather-prone regions?
JL: Companies that rely on single-source suppliers in weather-prone locations are very exposed. This creates a structural risk because a single event can strand shipments, halt production, or shut down warehouse operations. The result is a greater risk of lost revenue from stockouts, margin erosion from OTIF penalties, and reputational damage.
SC247: Why are ports and warehouses particularly vulnerable during severe weather?
JL: Yes. Ports and warehouses are centralized nodes where lots of goods pass through and are stored, making them inherently vulnerable as structural chokepoints in the supply chain. Heavy weather at ports can slow or even halt container moves and restrict the flow of goods in and out of warehouses. Furthermore, ports and warehouses are closely linked: when one slows down, the other becomes congested. And when severe weather hits both at the same time, the impact is amplified.
SC247: What does a weather-resilient supply chain look like in practical terms?
JL: In the simplest terms, it means a supply chain that is designed to operate in any weather. Diversification is key to protecting manufacturing, transportation, and storage during bad weather. Avoid single-source suppliers, factories, or distribution centers. Build flexible logistics with alternate routes and carrier options, and access to temperature-controlled equipment when required. Consider temperature protection and labor contingency plans for at-risk warehouses. More advanced practices include real-time visibility into impending weather events, assessment of their business impact on supply chain transactions, and proactive corrective actions. While you can’t control the weather, you can control your response.
SC247: What is one step supply chain leaders should take this quarter to better prepare for the next disruption?
JL: Start by assessing your supply chain for single points of failure in weather-prone regions. Each single point of failure – one single plant, port, warehouse, carrier, or ingredient – creates a structural vulnerability and puts you one storm away from a costly supply chain disruption.
John Lash is Group VP of Product Strategy at e2open, a WiseTech Global company.
