Welcome to the Risk Savvy Report, your go-to source for the latest insights on global supply chain trends to keep you informed and ahead of the curve. In this edition, we cover top supplier risk signals for August 2024 across core industries impacting the global supply chain.
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Before we explore industry-specific trends, here are some key global supply chain risk signals you should be aware of:
Every American’s Social Security number and address may have been stolen in hack
A hacker group claims to have stolen 2.7 billion records, including Social Security numbers and physical addresses, from National Public Data, a platform used for background checks. The data breach, which affects individuals in… more
Ningbo Port Explosion and U.S. Strike Threats Keep Container Pricing Volatile
Freight container pricing experienced significant volatility this year due to multiple factors including high demand, geopolitical tensions, and logistical disruptions. Notably, prices spiked by as much as 140% in May and June, driven largely by preemptive order placements amid concerns over… more
Japanese authorities warn population of mega-quake
Japanese authorities have issued a warning to the population about the increasing likelihood of a “mega-quake” in the near future. Experts predict that a powerful earthquake, potentially reaching magnitude 9.0, could strike the Nankai Trough, an area known for its seismic activity. This warning… more
CN Rail, CPKC begin halting shipments of certain goods as strike threat looms
Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. are preparing for potential work stoppages by initiating embargoes on hazardous shipments, like chlorine and ammonia, due to stalled contract negotiations with their workers. The railways, which have threatened to lock out around… more
Craft’s platform can help you monitor your supplier network to understand supplier risk and stay ahead of disruption. Contact our team to take a risk assessment.
Manufacturing
Industry Risk Overview for August
- 40% of manufacturing companies tracked have a medium to high environmental risk
- Nearly 40% of manufacturing companies tracked have a medium to high employee health and safety risk
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Recent Manufacturing Risk Signals
UK’s Economic Downturn Triggers Widespread Riots
The United Kingdom is currently facing widespread riots, driven by a severe economic downturn marked by record-high unemployment and inflation. Businesses, particularly in retail and hospitality, are struggling, leading to… more
U.S. Chip Manufacturing Push Faces Major Setbacks as Billions in Subsidies Fail to Deliver
The United States’ efforts to boost domestic chip manufacturing through the Inflation Reduction Act (IRA) and the Chip Act have largely failed. Despite a $400 billion subsidy package aimed at attracting investment, only $84 billion has been allocated, with nearly 40%… more
Illegal Mining Soars Near First Quantum’s Idled Panama Mine
Illegal mining has surged by 317% around First Quantum Minerals’ Cobre Panama copper mine since it was idled in November 2023. The suspension, following a Supreme Court ruling, led to mass layoffs and left areas vulnerable to exploitation by illegal miners seeking… more
An explosion at Ningbo-Zhoushan Port in China has intensified safety concerns in ocean container shipping. The blast resulted in no casualties, but caused significant damage and led to the suspension of port operations. This incident highlights ongoing safety issues within… more
Need to identify high-risk suppliers in your supply chain? Learn about supplier intelligence with Craft.
Financial Services
Industry Risk Overview for August
- 30% of financial service companies tracked have a medium to high financial risk
- Over 30% of financial service companies tracked have low creditworthiness
- Over 50% of financial service companies tracked had a compliance violation in the last 3 years
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Recent Financial Services Risk Signals
HSBC’s Play for Mideast Wealth Marred by Exits, Regulatory Curbs
HSBC is facing challenges in expanding its private banking business in the Middle East, a region ripe with billionaire wealth. Aladdin Hangari, a former Credit Suisse executive hired by HSBC, aimed to double the unit’s assets but faced setbacks due to regulatory restrictions and high-profile departures within… more
Report: Blackstone raised rents double the market average in San Diego causing the housing crisis
A new report criticizes Blackstone for significantly raising rents on properties in San Diego, exacerbating the city’s affordable housing crisis. The report finds that Blackstone, owning over 60 apartment buildings in the area, increased rents by up to 79%, with an average hike of 38%. This rise in rents has… more
Bank of Montreal (BMO) has been identified as the worst performer among the big four Canadian banks this year, with its stock price dropping by over 13%. This is in stark contrast to the other major banks, where, for example, Royal Bank of Canada has seen its stock rise by over… more
Learn how to understand the financial risks of your suppliers.
Technology
Industry Risk Overview for August
- 40% of technology companies tracked have a medium to high environmental risk
- 35% of technology companies tracked had a compliance violation within the last 3 years
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Recent Technology Risk Signals
The U.S. Cybersecurity and Infrastructure Security Agency (CISA) has issued ten advisories addressing critical vulnerabilities in industrial control systems across key infrastructure sectors. These vulnerabilities affect various systems, including those from AVEVA and Rockwell Automation, and… more
NVIDIA’s new Blackwell GB200 AI servers ‘component shortage’ leading to short supply in Q4 2024
NVIDIA is facing significant supply challenges with its next-gen Blackwell GB200 AI servers due to a component shortage and technical issues, expected to affect availability in Q4 2024. The servers are grappling with development hurdles such as leaks in their liquid cooling systems, prompting… more
SEC Charges NovaTech in $650 Million Crypto Fraud Affecting Over 200K Investors Globally
The Securities and Exchange Commission (SEC) has charged NovaTech Ltd. and its founders, Cynthia and Eddy Petion, with conducting a $650 million cryptocurrency fraud that affected over 200,000 investors globally, particularly impacting the Haitian-American community. The scheme, which operated… more
Snap shares plummet as weak outlook intensifies ad competition fears
Shares of Snap plunged 22% after the company predicted weaker-than-expected results for the third quarter, attributing the decline to reduced advertising demand, especially from consumer discretionary sectors. Analysts have expressed concerns about Snap’s ability to compete effectively in… more
Attackers leverage Cloudflare tunnels to obscure malware distribution
Cybercriminals have been exploiting the TryCloudflare service to distribute malware through phishing campaigns, as reported by security firms Proofpoint and eSentire. TryCloudflare, a feature of Cloudflare, allows developers to expose web applications to the internet securely, but attackers have… more
Automotive & Transportation
Industry Risk Overview for August
- 40% of automotive and transportation companies tracked have a low creditworthiness
- 30% of automotive and transportation companies tracked had a compliance violation in the last 3 years
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Recent Transport-Related Risk Signals
Airline Safety Under Fire Amid Recent Incidents
The U.S. airline industry has faced increased scrutiny due to a series of safety incidents, including a door malfunction on an Alaska Airlines flight and wheel detachments on United Airlines flights. These events have prompted temporary groundings and rigorous FAA inspections, resulting in heightened… more
Hyundai, Kia accused of selling owner data, leading to higher insurance premiums
A class action lawsuit has been filed against Hyundai and Kia in California, alleging that the companies have been sharing detailed vehicle data, including driving behaviors like “hard braking,” with insurance companies without owner consent. This sharing reportedly led to increased… more
Millions of Tesla Vehicles Impacted by Recent Safety Recall
Tesla has issued a recall affecting nearly two million vehicles due to a glitch in the hood latch assembly. The models impacted are the Model 3, Model S, Model X, and Model Y spanning several model years. The technical issue prevents the car’s system from alerting drivers when… more
Houthis assault another CMA CGM-operated ship
The container vessel Groton, operated by CMA CGM and chartered from Conbulk Shipmanagement, was targeted by Houthi missiles while sailing from Jebel Ali to Djibouti on August 3, 2023. The attack occurred shortly after the assassination of key figures from Hezbollah and Hamas, escalating… more
London Train Strikes: August to November 2024 Dates and Lines Affected
Train drivers working for LNER in the UK have announced a series of strikes that will affect weekend travel from the end of August to November. The strikes, organized by Aslef, the drivers’ union, are in response to alleged “bullying” by bosses despite a recent government-mediated… more
Learn how a global shipping leader demystified their supply chain with Craft.
Healthcare
Industry Risk Overview for August
- Over 45% of healthcare companies tracked have a medium to high financial risk
- 61% of healthcare companies tracked have had a compliance violation in the last 3 years
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Recent Healthcare Risk Signals
US slashes 10 patented drug costs sparking generics pricing concerns
The U.S. government, under the Inflation Reduction Act, will cut prices by at least 50% for 10 patented drugs covered by Medicare starting in 2026, impacting major pharmaceuticals like Johnson & Johnson and Eli Lilly. This move aims to ease costs for Medicare users but poses challenges for… more
Johnson & Johnson Faces $634 Million Blow in Talc Lung Cancer Verdict
A South Carolina jury awarded $634 million in damages to a lung cancer patient who used Johnson & Johnson’s talcum powder, marking a significant verdict against the company. The verdict underscores ongoing concerns about asbestos in consumer products and could lead to… more
Baxter International Notifies Consumers of June 2024 Data Breach
Baxter International, Inc. reported a data breach on August 8, 2024, after an unauthorized party accessed and downloaded sensitive information from the company’s network. The breach was first noticed on June 10, 2024, prompting Baxter to enhance security measures and collaborate with… more
$495 Million Verdict Against Abbott Laboratories Set to Shape NEC Baby Formula Litigation Nationwide
A recent $495 million verdict against Abbott Laboratories in a necrotizing enterocolitis (NEC) baby formula trial marks a critical point in litigation concerning baby formula safety. This follows a previous $60 million verdict against Mead Johnson, with both companies’ products linked to NEC in… more
Bayer plans another round of Whippany layoffs
Bayer is conducting another round of layoffs at its U.S. headquarters in Whippany, continuing its companywide restructuring aimed at increasing operational efficiency. Significant managerial positions have been reduced as part of this strategy, which also includes a downsizing of… more
Get configurable alerts for the supplier risks that matter most to your supply chain? Learn more about Supplier Risk Management from Craft.
Retail
Industry Risk Overview for August
- Nearly 25% of retail companies tracked have a medium to high financial risk
- 20% of retail companies tracked had a compliance violation in the last 3 years
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Recent Retail Risk Signals
Lagos Faces Petrol Prices Near N1,000/Litre Amid Supply Disruptions
Petrol prices in Nigeria are nearing N1,000 per litre, significantly impacting cities like Abuja, Lagos, Kano, and Maiduguri due to ongoing supply issues. These disruptions have resulted in closed petrol stations and long queues at those still operational, with prices soaring up to… more
The Public Health Agency of Canada has issued an update concerning a Listeria outbreak that has been linked to recalled plant-based refrigerated beverages sold in major stores like No Frills, Walmart, and Shoppers Drug Mart. As of the latest update, 18 people have contracted listeriosis from… more
Curious how we gathered this information? Explore Craft’s platform’s capabilities.
Energy and Utilities
Industry Risk Overview for August
- 46% of energy and utility companies tracked have a medium to high ESG risk
- Over 55% of energy and utility companies have a high regulatory risk, with 40% having a compliance violation in the last 3 years
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Recent Energy and Utilities Risk Signals
ITM Power to supply 100MW stacks to Refhyne II
ITM Power has secured a contract to supply 100 MW of electrolyzer stacks for the REFHYNE II project, a major green hydrogen initiative in Europe. These electrolyzer stacks will be installed at the Shell Energy and Chemicals Park Rheinland in Germany, significantly expanding… more
A class-action lawsuit has been filed against Nano Nuclear Energy Inc. (NNE) by the law firm Gainey McKenna & Egleston. The lawsuit alleges that NNE and certain of its officers made false or misleading statements and failed to disclose material information about… more
Buenos Aires Orders Compulsory Conciliation Amid Oil Workers’ Strike
On the seventh day of an oil workers’ strike in Argentina, the government intervened by ordering compulsory conciliation to end the conflict. The strike, which involves workers demanding better wages and working conditions, has disrupted oil production in the country. The government… more
ExxonMobil CO2 pipeline is ‘greenwashing’, UK MPs say
ExxonMobil’s plan to develop a CO2 pipeline in the UK has sparked controversy, with politicians and environmental groups accusing the company of greenwashing. The pipeline is part of ExxonMobil’s broader carbon capture and storage (CCS) initiative, aimed at reducing carbon emissions by… more
FirstEnergy expects to pay $119.5M to resolve ongoing investigations into HB6 bribery scandal
FirstEnergy Corp. anticipates paying $119.5 million to settle federal and state investigations linked to Ohio’s House Bill 6 bribery scandal. The utility expects to pay $100 million related to an SEC investigation and an additional $19.5 million to settle a civil lawsuit and… more
Learn how a major Asian utilities and energy company optimizes its supplier visibility with Craft.
We hope these insights have enhanced your understanding of supplier risk in the global supply chain, making you evermore risk savvy.
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