Thailand floods lead to industrial disruptions
Our WBN (http://www.wbnglobal.com/) partner in Thailand, Asianet, reports extreme flooding conditions in major areas of the country. We quote them verbatim as follows:
“Great efforts were made to protect Bangkok and the industrial estates. Unfortunately these were not all successful and 3 metre high walls and dams collapsed. Many large industrial estates are submerged under up to 2 metres of water. Pumps are working but there is nowhere to pump the water.
The largest industrial estates which are submerged are Rojana, Hi-Tech, Bang Pa, and In Navanakorn.
Hundreds of thousands of people are out of a job, and this is having a knock on effect as restaurants and shops are unable to source food because the factories are closed and the roads are impassible. Panic buying in Bangkok at the weekend meant that instant noodles and drinking water were scarce, but in the coming days the breakdown of the supply chain will lead to empty shelves.
The oil giant PTT is facing a disastrous fourth quarter as demand for gasoline has fallen and they are unable to deliver to the stations. Electricity demand is well below normal with so many factories closed for an extended period, which is impacting their gas business.
Loss adjustors are struggling to cope. Crawford, for example, claim to have 65 adjustors here already and more flying in. Others are simply struggling with logistics because there is so much water, it has been there for a long time and will stay for even longer.”
Pictures of the scene is central Thailand can be seen here.
WGA clients with concerns about owned operations or contingent exposures should contact their Client Executive for more information.
About the Author
Phil Edmundson is the Chairman and CEO of William Gallagher Associates (WGA), insurance brokers and consultants for businesses with over 30 years in the insurance industry. He manages strategy, talent acquisition and development, and management / acquisitions at WGA.
617.646.0229 PEdmundson@wgains.com Connect with Phil on LinkedIn