Wildfire in Thailand — Green alert

Supply-chain Risk Briefing: Thailand Forest Fires

1. Summary

Forest fires occurred in Thailand from April 8-15, lasting for a week, and are classified as medium-level risk. Northern Thailand appears to have been particularly affected by the fire damage, with local authorities taking proactive measures including the introduction of app-based solutions for fire response.

2. Supply-chain impact

• Agricultural commodities: Thailand is a global supplier of major agricultural commodities including rice, palm oil, cassava, and rubber, with potential direct and indirect impacts on agricultural production infrastructure and storage facilities in the northern region
• Manufacturing hub: Northern Thailand is a region with concentrated production bases for electronic components and automotive parts, raising concerns about production disruptions due to deteriorating air quality or logistics transportation delays
• Logistics network: Smoke and visibility issues from fires may cause temporary delays in road transportation and air cargo transport
• Power infrastructure: Risk of production shutdowns for manufacturers if forest fires impact transmission lines or power facilities

3. Watch points

• Fire suppression status: Need to monitor complete extinguishment status after April 15 and possibility of recurrence, as well as additional fire outbreaks due to seasonal dry conditions
• Air quality index: Track the timeline for normalization of air transport and northern industrial complex operations affected by smoke
• Agricultural damage scale: Analyze the impact of crop damage assessment results on global commodity prices, particularly for crops coinciding with harvest season