Welcome to the latest edition of 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. This month, we highlight risk signals for December 1 – 15, 2024 across financial stability, labor challenges, ESG compliance, transportation disruptions, and cybersecurity.
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Bankruptcy & Financial Risk
Weekly Bankruptcy report for the week
Tracking reported business bankruptcy filings across Massachusetts, Maine, New Hampshire, and Rhode Island, and Chapter 11 filings in New York and Delaware involving assets exceeding $1 million.
Nvidia stock drops as China probes the chipmaker over potential antitrust violations
China’s antitrust regulator has launched a review into Nvidia’s $6.9 billion acquisition of Mellanox, prompting investor worries and sending Nvidia’s shares lower.
General Motors suffers $12bn loss as Chinese market declines
General Motors suffered a $12 billion loss as it grappled with declining sales and market share in China. The automaker is facing intensified competition and shifting consumer preferences in what was once a key growth market.
S&P places Transnet on credit watch amid rising debt and operational challenges
S&P Global has placed South African logistics company Transnet on credit watch due to ballooning debt and persistent operational difficulties. These challenges raise concerns about the firm’s financial stability and future performance.
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Labor Strikes & Workforce
Amazon Workers Go On Strike, Protest In 20 Nations, Including US
Amazon workers in 20 countries, including the US, United Kingdom, Germany, Japan, India, and Brazil, went on strike during a busy holiday shopping weekend to “hold Amazon accountable for labor abuses, environmental degradation and threats to democracy.”
The Tokyo metropolitan government plans to implement a four-day work week for its employees starting in April 2025, aiming to provide more family time and boost declining birth rates. The initiative reflects a broader effort to address demographic challenges and improve work-life balance in Japan.
Drayage Truckers Face Freight Surge as Imports Rise Due to Threats of Tariffs and Dockworker Strike
The threat of new tariffs and a possible port strike has led to a sudden increase in container freight as companies rush to move goods before disruptions occur. This preemptive shipping surge reflects the industry’s efforts to mitigate potential supply chain delays and higher costs.
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.
ESG & Forced Labor
Feds investigating HelloFresh-owned facility in Illinois over allegations of child labor
Illinois authorities are investigating allegations that HelloFresh employed underage workers at its Aurora facility, raising serious concerns about the company’s labor practices. If substantiated, these claims may highlight vulnerabilities in workforce oversight and trigger stricter regulations for corporate compliance.
VW subsidiary sued over historical slave labour practices in Brazil
A Volkswagen subsidiary is being sued in Brazil for allegedly using slave labor on an Amazonian plantation decades ago, spotlighting historical exploitation tied to a major global automaker. The outcome of this lawsuit could influence reparations, reshape corporate responsibility standards, and prompt deeper introspection into past industrial practices.
Tariffs threaten to elevate US energy costs
Proposed tariffs on imported materials threaten to inflate production expenses for U.S. energy infrastructure, potentially pushing up consumer energy costs. This increase in supply chain pressures may undermine domestic energy expansion and hinder the country’s economic competitiveness over time.
Supply Chain & Transportation
Lock Accident Halts Shipping into France and Luxembourg from the Rhine
A lock accident on a crucial route from the Rhine has disrupted shipping traffic into France and Luxembourg, causing delays and logistical headaches for riverine trade. This unexpected holdup may force shippers to seek alternative routes or transportation methods, increasing costs and complicating supply chains.
Retailers advised to bring cargo in early as potential port strike, tariffs loom
With the threat of tariffs and potential port strikes looming, experts are advising retailers to move their cargo earlier than usual to avoid costly disruptions. By acting proactively, companies hope to maintain inventory levels and secure reliable market access despite unpredictable trade conditions.
Pemex Freezes New Contractor Deals as It Works Out $20B Owed to Suppliers
Mexican state oil company Pemex has paused signing new contractor agreements as it works to settle an outstanding $20 billion debt with suppliers. This financial strain could slow down infrastructure projects, raise investor concerns, and impact Mexico’s broader energy sector stability.
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Legal
Apple Accused of Using Conflict Minerals
The Democratic Republic of Congo has filed criminal complaints in France and Belgium against Apple subsidiaries, accusing the company of using conflict minerals sourced from militias in eastern DRC. Apple insists it monitors its supply chain to avoid such practices, but the legal action now awaits further investigation by European authorities.
FMC ruling stalls launch of box ship Premier Alliance
A ruling by the U.S. Federal Maritime Commission has delayed the launch of the new Premier Alliance among container ship operators. This setback forces the alliance partners to reassess their timetable and may introduce additional regulatory hurdles before operations can begin.
Microsoft sued for allegedly overcharging UK businesses
The UK’s communications regulator Ofcom has referred Microsoft’s cloud practices to the Competition and Markets Authority following complaints from businesses about restrictive licensing agreements. This development could lead to a full investigation, intensifying scrutiny on Microsoft’s dominance in the cloud computing market.
Manufacturing
Boeing only now resuming production a month after strike that idled two key plants
Boeing has restarted production after a month-long strike brought its assembly lines to a halt, signaling a return to normal operations. This resumption follows an agreement with striking workers that resolves their concerns and restores the company’s manufacturing output.
Cybersecurity
FBI Officials Are Urging Americans to Use Encrypted Messaging Apps to Avoid Hackers
FBI officials are advising Americans to switch to encrypted messaging apps to better protect their personal data from cybercriminals. Their guidance highlights the increasing threat of hackers intercepting private communications and the need for stronger online security measures.
Learn how to understand the financial risks of your suppliers.
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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