Extreme weather is strangling global trade, as cyclone Narelle and a string of tropical storms dent production in northern Australia. Rio Tinto reports an $800 million revenue hit from lost iron‑ore shipments, while LNG exporters lose 8 % of global supply.

The losses extend beyond repair costs. An Ohio State study found that Hurricane Harvey‑affected Texas firms suffered $52 million in physical damage but lost $1.08 billion in revenue, a twenty‑fold gap.

MSCI’s latest model warns that weather‑driven business interruption could erase over $1 trillion in annual revenue for institutional portfolios. Companies focus on direct impacts, leaving supply‑chain risks largely unquantified.

Insurers offer limited “contingent business interruption” cover, usually confined to domestic suppliers. Without broader protection, firms face mounting losses that already ripple across the corporate world.