Typhoon Krathon has hit Taiwan with significant force, moving slowly across the island. As of October 3rd, southern Taiwan, including Kaohsiung, Tainan, and Pingtung, is experiencing its third consecutive day off, while northern counties and cities have had two days off. Given Taiwan's critical role in the global supply chain, concerns are mounting about whether the typhoon will affect the stability of the ICT industry's supply during the traditionally slower fourth quarter of 2024.
Since the Covid-19 pandemic, the resilience of Taiwan's tech and manufacturing sectors has significantly improved, with robust systems for video conferencing and remote work now in place. Additionally, Taiwanese companies have extensive experience in preparing for typhoons.
Industry sources state that Typhoon Krathon is unlikely to cause any disruptions to Taiwan's supply chain. However, the main concern is the potential impact on Taiwanese manufacturers' October revenue due to the typhoon-related holidays.
For the global supply chain, greater attention should be paid to the dockworker strike on the US East Coast and in the Gulf of Mexico, now in its second day. Some industry players forecast that if the strike lasts more than two weeks, concerns about supply chain disruptions and inflation could persist into early 2025. Industry stakeholders are advised to monitor this situation closely.
Moreover, the escalating conflict between Israel and Iran may affect shipping rates, oil prices, and the overall stability of supply chains, warranting further observation.
Lastly, due to high inflation and other economic factors, there are doubts about whether traditional peak season demand surges for end products like smartphones, TVs, and PCs will materialize in the fourth quarter of 2024. If the fourth quarter peak season underperforms, the impact on the entire supply chain could be significant.
