Transport and logistics insurer TT Club is urging businesses to reassess supply chain resilience as forecasts indicate the current El Niño event could develop into a potentially significant climate event.

TT Club warns that a severe El Niño should be viewed as a systemic risk multiplier, with the potential to compound existing vulnerabilities across transport infrastructure, energy systems and commodity markets.

Neil Dalus, risk assessment manager at TT Club, said: "The trajectory of this El Niño event demands that the logistics and supply chain community takes a proactive rather than reactive approach. The question is not whether disruption will occur, but how prepared organisations are to anticipate and respond to it. Those 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."

MS Amlin’s recent hurricane outlook remains relevant: stronger El Niño conditions typically suppress Atlantic hurricane activity by increasing wind shear and reducing storm development potential. However, this does not remove the potential for significant individual loss events, particularly where other favourable conditions, such as warm Atlantic waters, remain in place.

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