the first resilience360 annual risk report examines the majorsupply chain risks that companies experienced in 2018. the world’stop three risks were uncertainties concerning trade flows, cybersecurity incidents, and climate change paired with extreme weatherconditions. uncertainty in trade increased due to disputes betweenthe us and other countries, in particular china, including newunilateral import tariffs. the still-open question of the uk’swithdrawal from the eu is also contributing to uncertainty, ascompanies fear border congestions and delays at ports in the eventof a disorderly departure. in the realm of cyber security, a risingnumber of incidents involving supply chain and transportinfrastructure showed how actors are intent on obtaining tradesecrets, engaging in blackmail, or causing economic disruption.lastly, climate change presented a myriad of severe weather-relateddisruptions in 2018, which was the 4th warmest year on record.wildfires, droughts, low water levels and melting ice had the mostsignificant impacts on supply chains.
in europe, resilience360 recorded the most incidents ingermany and the united kingdom. two-thirds of high-impact eventswere caused by cargo theft, industrial fires and explosions, andtrain accidents. however, the distribution of incidents acrosseurope was more even than in other regions. air and groundtransportation incidents represented the majority of incidents with44.7%. such events are especially relevant for supply chains, asseen by the disruption of railway traffic on key rail corridors formore than two weeks that resulted from two train accidents. civilunrest accounted for the second-highest portion of events at 12.9%.protests related to labor day (may 1) and the yellow vests infrance and belgium disrupted highways, ports, border crossings andaccess roads to industrial areas. weather events also posedproblems for supply chains. a month-long drought in summer andautumn resulted in record-low levels of water on the rhine river.the water levels inhibited shipping traffic, and chemical and steelmakers in germany, france and the netherlands were compelled todeclare force majeure on deliveries. natural disasters affectedcountries across europe as well. in october, greece was struck byan earthquake near zakynthos island, while italy, spain, france,and the united kingdom experienced heavy floods.
