Climate Shocks: Perishable Supply Chain Requires Urgent Investment As Instability Grows

Climate volatility is a structural threat to global food supply chains that is compounding other pressures, driving frequent disruptions, productivity loss, and higher food waste across the value chain, finds a new report from DP World. 

Image: DP World

As climate impacts intensify, the survey points to the urgent need for coordinated investment in cold-chain infrastructure, predictive visibility tools and integrated logistics solutions. Together, these can reduce waste and improve performance across the global food system. 

In the past three years, a massive 93% of companies in perishable supply chains have experienced climate-related disruption, with nearly half affected six times or more during that period, according to DP World’s Without Logistics: Perishables Edition report. 

These climate shocks are compounding existing operational issues such as port congestion, customs delays and technology failures, all of which shorten shelf-life and increase spoilage. 

As extreme weather intensifies, from floods to droughts that restrict major waterways, the report says cold-chain networks are struggling to maintain product integrity and ensure reliable delivery. 

As such, roughly one‑third of all food produced globally is lost or wasted before it reaches consumers, equivalent to about 1 billion meals every day, the research found. 

More than half of surveyed companies lose up to a month of productivity in a disrupted year, and about a third take over a month to recover from major events, eroding margins and amplifying waste.

With instability growing in the global food supply chain, DP World said traditional supply routes are being upended, forcing producers to build resilience in real time. 

“Climate volatility is reshaping how food moves across borders. The sector is feeling the pressure more often and with less warning,” explained Alfred Whitman, Global Vice President – Perishables & Agriculture, DP World. “What’s needed now is earlier insight into risks, more predictable movement across regions and stronger cold-chain infrastructure.” 

Under Threat: Core Findings

• Climate shocks are compounding other pressures: companies report high exposure to port congestion (93%), customs delays (88%), and technology failures (88%).

• While 79% of companies believe they respond quickly to disruption, 94% admit limited end-to-end visibility - showing a gap between perceived and actual resilience.

• A typical logistics incident now costs US$400,000, contributing to more than US$7 billion in annual losses across the perishables sector.

• More than half of companies (55%) lose up to a month of productivity in a disrupted year, while a third take over a month to recover from major events.  

DP World said its findings, based on a survey of hundreds of senior logistics professionals, reveal a sector under mounting strain as it strives to meet the needs of a growing population in an increasingly unpredictable world. 

Most businesses (79%) believe they respond quickly to disruption, yet 94% say limited end‑to‑end visibility remains a persistent barrier, creating a gap between perceived and actual resilience. 

“Closing that gap will define how well global food supply chains function in the decade ahead,” pointed out Beat Simon, Chief Operating Officer – Logistics at DP World.

DP World executives argue that traditional systems were not designed for today’s level of instability and that resilience now depends on earlier risk insight, more predictable cross‑border flows, and stronger cold chain infrastructure. 

DP World is already investing in advanced cold-chain logistics, digital visibility platforms, and multimodal connectivity, which the group says enables cargo owners to respond faster and keep food moving even amid climate shocks.

Download the report here.