Filed Under:Markets, E&S/Specialty

Thailand Floods Hit Auto, Computer Supply Chains Hardest

Some residents of Bangkok have been told to evacuate as water further creeps into the city. (AP Photo/Aaron Favila)
Some residents of Bangkok have been told to evacuate as water further creeps into the city. (AP Photo/Aaron Favila)

Nu Online News Service, Nov. 9, 2:57 p.m. EST

Thailand flooding that has forced evacuation of 650,000 people, killed more than 500 and destroyed homes has shut down manufacturing plants that provide supplies to companies in the United States, particularly in the automobile and computer industries, according to AIR Worldwide.

Two of the world’s largest car manufacturers, Honda and Toyota, have had severe disruption to their manufacturing processes, not just in Thailand but worldwide due to a lack of parts.

Thailand is responsible for the manufacturing of about a quarter of all hard disk drives produced for the global-computing industry. This round of flooding has raised fears of global supply shortages of hard disk drives for the lucrative Christmas season, AIR notes. Already prices for hard drives are reported to have increased by up to 180 percent.

According to the modeling company, the recent flooding is being described as among the worst in Thailand’s history, with some 6 million hectares (more than 14 million acres) of land affected. In the north and central plains, the damage has been predominantly to residential properties and to agriculture.

Flooding was at first confined to the north and northeast of the country but has steadily moved further into the central plains.

As of Nov. 7, 12 of the 50 districts of the capital were on the evacuation list with a further seven sub-districts on partial notice, AIR says. The commercial heart of the city, however, remains dry at present. Officials estimate that flood conditions in the Bangkok area are likely to continue for several more weeks.

Featured Video

Most Recent Videos

Video Library ››

Top Story

The state of New Orleans: 10 years after Hurricane Katrina

Watch as NU-PC360 tours the still abandoned homes and lots of the Lower Ninth Ward, the new construction booming in the up-and-coming Lakeview and the new levee floodgates on the Violet Canal.

Top Story

6 lessons insurers learned from Katrina

Ten years later, Katrina is still making an impression. Numerous lessons were learned from Katrina that have helped insurers and other first responders better prepare for other catastrophes. Some may seem obvious, but others demonstrate just how much has changed in the past decade.

More Resources

Comments

eNewsletter Sign Up

Specialty Markets Insight eNewsletter

Receive updates and analyses on hard to place and challenging coverages. Sign Up Now!

Mobile Phone

Advertisement. Closing in 15 seconds.