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Floods Devastate Brazil

Brazilians are scrambling to high land and desperately conducting rescue efforts as heavy rain that started on January 1 continues to flood the country; meteorologists bleakly forecast that the rain will persist for the next few days. Considering that 950 natural catastrophes hit in 2010 (the second-highest number since 1980), this is hardly a reassuring start to the new year.

Australia is also experiencing a record-breaking flood — its worst in 50 years — that has killed at least 25 and may cost the nation $5 billion. Brazil’s flash floods and mudslides, triggered by a seemingly apocalyptic 14-plus inches of rain, have destroyed infrastructure and forced flight cancellations in countless airports across the globe.

More horrifying, however, is the nation’s mounting death toll. At least 500 have died in the perilous conditions; Brazilians report their families being torn apart by lethal walls of water and earth. Rescue workers are sifting through the mud and rubble with hopes of finding some of the thousands reported missing. Many of those who survived the event are stranded (the Civil Defense Department estimates 14,000) among the wreckage as homes collapse and officials order more evacuations. Schools and hospitals have become makeshift shelters and morgues.

President Dilma Rousseff flew to Nova Friburgo, one of the Brazilian towns most affected by the deluge (Teresopolis and Petropolis are the other two), yesterday to inspect the damage. Though only just sworn in as president on January 1, Rousseff is probably feeling the heat from those clamoring for an explanation of how this disaster wasn’t better anticipated.

According to Rio de Janeiro Governor Sergio Cabral, these cities’ populations have quadrupled in the last few decades, motivating officials to allow illegal construction on precipitous hillsides to handle the boom, despite the risks of living there — risks now evident as these homes built on mountain slopes cascade into the water. And although this marks the fourth consecutive year of devastating rainfall in Brazil, the staggering numbers of dead and missing citizens show a disturbing lack of preparedness. One can only hope that this disaster will inspire Brazilian authorities to take more proactive and preventative measures in protecting the country from torrential storms.

Australian Insurers Brace for Worst

Close to 348,000 square miles across 20 towns are flooded and 200,000 residents affected after heavy rains drenched Queensland and neighboring states from December 25 to January 3.

The effects of the flooding are far-reaching. Reports indicate Queensland-based insurer SunCorp has told the Australian Stock Exchange it has received 1,800 claims so far. A JP Morgan analyst has said that losses to the insurance industry due to the flooding are estimated at $1 billion. The Insurance Council of Australia (ICA), however, has said that it is too early to provide a loss estimate.

The worst flooding in decades has affected an area the size of Germany and France, leaving towns virtual islands in a muddy inland sea, devastated crops, cut major rail and road links to coal ports, slashed exports and forced up world coal prices.

Coal production in Queensland has been severely disrupted. “The Queensland Resources Council said lost coal and gas production would run to hundreds of million of dollars.” Economists have projected a $6 billion loss from reduced export volumes.

Key crops such as cotton, sunflower, sugar and wheat have been gravely affected by the floods and, according to the Queensland Farmers Federation, few farmers have flood insurance. Crop losses alone could exceed $1 billion.

Below is a video of the “biblical” Australian floods that have claimed the lives of 10.

Needless to say, the property damage in Queensland and neighboring states will be a hard hit to the country’s insurers.

Ringing in the New Year With Natural Disaster Cleanup

It’s safe to say it wasn’t the best start to a new year for some parts of the United States.

The Northeast continues to dig out with trucks still hauling away snow that fell more than eight days ago. Though many businesses were affected by the storm, it was recently reported that the post-Christmas blizzard cost retailers a whopping $1 billion. That’s according to shopper traffic analysis company, ShopperTrak. The following are their findings:

  • On Dec. 26 total U.S. foot traffic was 11.2% below what it would have been expected if the blizzard had not hit the Northeast.
  • Northeast region foot traffic fell 6.1% on Dec. 26 while the other three regions (Midwest, South, West) had an average gain of 38.6% versus last year.
  • On Dec. 27 total U.S. foot traffic was 13.9% below expectations had the blizzard not hit the Northeast.
  • Northeast region foot traffic fell 42.9% on Dec. 27 compared to 2009, while the other regions averaged a 13.0% gain.
  • Preliminary GAFO retail sales estimates for Dec. 26 and 27 combined are roughly $10 billion. Assuming a conservative 10% sales impact nationally for the blizzard, roughly $1 billion of retail spending was postponed during the two day period.

It’s not only retailers that were financially impacted by the monstrous storm; some estimates say the airline industry could see blizzard-related costs upwards of $150 million.

At least 6,000 flights, mostly in and out of New York City-area airports, were canceled because of the storm, according to the Federal Aviation Administration. Those disruptions, along with the need to bring back planes that had been moved in anticipation of the blizzard and other factors, could cost airlines between $100 million and $150 million, estimates Helane Becker, an airline analyst at Dahlman Rose.

In the West, Californians were hit with heavy rains and winds that caused flooding through the Los Angeles area, the power of which can be seen in this video of Loma Linda, California on December 22.

It was reported that rains dumped more than half the year’s normal rainfall in many California regions, and areas of Los Angeles recorded almost 22 inches of rain. The area continues to assess damage and clean up costs.

And lastly, on New Year’s Eve, a deadly tornado outbreak swept across Arkansas, Mississippi, Missouri and Illinois. The Weather Channel says there were 30 reported tornadoes, with five of the twisters earning an EF3 rating. Seven people were killed during the storms, making it the second deadliest New Year’s Eve for tornadoes.

Is this a sign for what’s to come in 2011 or merely a dramatic end to a year filled with unprecedented natural disasters?

Indonesia’s Year of Tragedy

The recent tsunami that devastated several remote islands in Indonesia has brought to light the country’s horrible history of natural disasters. Here, we take a look at the worst disasters to strike the chain of islands in Southeast Asia this year alone.

June 16, 2010: The 7.0 magnitude Papua earthquake destroyed nine villages and killed 17 people. More than 2,500 houses were destroyed. This came on the heels of the 2009, 7.6 magnitude Papua earthquake that killed four and injured dozens.

October 6, 2010: The Papua area experienced yet another disaster when torrential rains caused overflowing rivers and landslides. More than 145 people were killed, more than 800 injured and hundreds more displaced. The government blamed heavy rains for the severe flooding, rather than illegal logging and deforestation.

October 25, 2010: The U.S. Geological Survey reported a 7.7 magnitude earthquake struck off the coast of Indonesia’s Sumatra island, causing a deadly tsunami.

October 25, 2010: The tsunami struck Indonesia’s Sumatra province, flattening villages and a resort. West Sumatra provincial disaster management official Ade Edward was quoted as saying, “The number of dead is now 282 and 411 are missing.” He said aid such as food, blankets and tents had begun filtering into the affected areas but that clean water was scarce and that the risk of disease was growing. Indonesian officials have said that the country’s tsunami warning system was not working because it had been vandalized. (The warning system was implemented after the horrific 2004 earthquake and tsunami that killed more than 230,000.)

October 26, 2010: Indonesia’s most volatile volcano, Mount Merapi, erupted, killing at least 28 people. Authorities have been attempting to evacuate 11,000 villagers living on the slopes of the volcano where many houses have been destroyed. Among the dead was the elderly spiritual guardian of the volcano, a man who, Japanese believed, possessed magical powers over the mountain.