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Batten down the hatches, warns TT Club

[ July 7, 2026   //   ]

Insurer TT Club is warning the freight industry that a super El Niño weather event could be a systemic shock to the already strained global supply chains.

With the world now officially in an El Niño climate pattern, the latest forecasts suggest it could be one of the strongest on record, with the European Commission’s Joint Research Centre saying the outlook is “potentially historic”, withf widespread and simultaneous disruption across multiple regions.

Key areas of concern include reduced water levels in critical transit routes such as the Panama Canal, alongside intensified Pacific storm activity, could further erode the reliability of global shipping networks.

Extreme heat may drive surges in energy demand, potentially leading to power rationing and operational disruption in – manufacturing hubs. There may also be indirect impacts through supplier disruption, freight cost increases, energy market volatility and working-capital pressures.

Organisations with greater supply chain visibility, diversified sourcing strategies and robust crisis management frameworks will be far better positioned to weather what could be a very challenging period, says TT Club.

It has prepared a TT Club’s climate-ready supply chain whitepaper 

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