Economic Impact of Tropical Cyclones on Global Supply Chains

This technical report discusses the significant economic impact of tropical cyclones (TCs) on global supply chains and maritime trade. It outlines the destructive nature of TCs, which cause an average of 43 deaths and USD78 million in economic damages daily. The report highlights the escalating economic costs associated with TCs, particularly in the United States, where losses have reached USD731 billion from 2010 to 2019. It emphasizes the ripple effects of TCs on global trade, particularly through disruptions at ports that handle 80% of global trade. The case study of Taiwan illustrates the vulnerability of critical supply chains, particularly in the semiconductor sector, where disruptions could lead to significant economic losses. The report also discusses the role of climate change in intensifying TCs and the need for improved adaptation measures to mitigate economic costs. It concludes with the importance of National Adaptation Plans under the UNFCCC for enhancing resilience against TCs.