Wildfire in Thailand — Green alert

Supply-chain Risk Briefing: Thailand Forest Fires

1. Summary

Medium-intensity forest fires occurred in northern Thailand for approximately two weeks from March 31 to April 15. While local response systems are being strengthened through the introduction of digital solutions for fire suppression, the possibility of further spread remains due to the characteristics of the dry season.

2. Supply-chain impact

• Agricultural production disruptions: Northern Thailand is a major production region for rice, corn, sugarcane and other key agricultural products, raising concerns over farmland damage and reduced yields from the fires
• Timber and pulp supply-chain damage: Forest resource losses leading to reduced timber raw material supply and cost pressures on related paper and furniture industries
• Logistics network constraints: Potential increased land transportation costs and delivery delays due to detour transport around fire areas
• Air quality deterioration: Reduced manufacturing productivity and increased worker health risks due to smoke and fine dust
• Tourism industry cascading impacts: Reduced accessibility to northern tourist destinations leading to decreased regional economic and service sector revenues

3. Watch points

• Weather condition changes: Assessment of fire suppression potential and additional spread risk through monsoon season arrival timing and precipitation forecasts
• Government response measures: Monitoring effectiveness of Thai authorities' forest fire response app and scale of additional suppression resource deployment
• Impact spread to neighboring countries: Tracking fire spread to border areas with Myanmar, Laos and regional air quality deterioration levels