As we enter storm season, businesses operating in Asia must brace for potential disruptions caused by typhoons and severe weather events. Last year’s storm season highlighted how unanticipated weather can wreak havoc on global supply chains, leading to delayed shipments and factory closures.

Looking Back at Last Storm Season

Typhoon Rai (Odette) struck the Philippines in December 2021, causing over $1 billion in damage and significant disruptions. Port closures, transportation network breakdowns, and power outages forced businesses to grapple with prolonged downtime and shipment delays, impacting global supply chains.

Similarly, Typhoon Chanthu in September 2021 caused extensive damage in Taiwan and mainland China, disrupting key electronics manufacturing plants. Shipping routes were rerouted, and transport infrastructure was strained, leading to weeks of production slowdowns.

Typhoon In-Fa in July 2021 also significantly affected Shanghai, one of the world’s busiest ports, causing closures that strained international shipping routes and delayed goods destined for Europe and the Americas.

These storms emphasize the critical need for businesses to be proactive, adaptable, and prepared for sudden shifts in their supply chains.

Key Challenges Storms Pose for Supply Chains

1. Port Closures and Shipping Delays
   Typhoons frequently cause port shutdowns, resulting in backlogs that delay shipments for weeks. Businesses relying on just-in-time supply chains are particularly vulnerable, facing increased costs and shortages.

2. Factory Closures and Production Delays
   Severe storms can lead to extended factory closures due to power outages and flooding. Typhoon Chanthu, for instance, disrupted production across industries in Taiwan and China, causing bottlenecks in global supply chains.

3. Disrupted Transportation Networks
   Flooded roads and landslides can make overland transport impossible. Businesses requiring quick deliveries, such as perishables or components for assembly, may face extensive delays or costly alternative routes.

4. Inventory Shortages and Price Hikes
   Storms can result in inventory shortages, impacting production schedules and sales. Disruptions in sourcing raw materials or components often lead to price fluctuations, as seen during last year’s typhoon season.

How Asia Agent Ltd. Can Help Your Business Stay Resilient

At Asia Agent Ltd, we recognize that severe weather events are an inevitable aspect of doing business in Asia. However, their impact can be significantly mitigated through strategic planning and proactive measures. Here’s how we can help:

1. Conduct a Thorough Risk Assessment of Your Supply Chain
   We perform an in-depth analysis of your supply chain to identify vulnerabilities and develop contingency plans to maintain operations during storms.

2. Supplier Diversification and Alternative Sourcing
   We help businesses diversify suppliers and explore alternative sourcing in more stable regions, ensuring resilience during major weather events.

3. Real-Time Monitoring and On-the-Ground Support
   Our teams provide real-time storm tracking and operational updates, working closely with suppliers to monitor production and logistics, enabling quick adaptations to changing conditions.

4. Build Stronger Contracts and Backup Plans
   We assist in developing robust contracts with suppliers that include clauses for handling weather-related disruptions and establishing backup plans for shipping routes and warehousing.

5. Proactive Inventory Management
   We help strategize stockpiling critical inventory and sourcing backup materials before storm season, ensuring resources are available even if regular suppliers are disrupted.

6. Strengthen Communication Channels
   We establish clear communication protocols between your team, suppliers, and logistics partners to ensure everyone stays informed and can act swiftly during a storm.

Looking Ahead: Be Prepared for the Unexpected

The 2023 storm season serves as a reminder that while weather events are unpredictable, they can be managed. By learning from previous storms and investing in strategic planning, your business can remain resilient and minimize disruptions.

Don’t wait for the storm to hit—prepare now. Partner with Asia Agent Ltd to equip your supply chain for storm-related challenges. With our experience and on-the-ground support across Asia, we can help safeguard your operations against any weather that comes your way.