Here are the top news stories impacting global supply chains this month.
The recent CrowdStrike outage and its impact on the industry highlight several lessons learned and changes that need to be made. First, it clearly exposed the vulnerability of the supply chain when it comes to cybersecurity. Businesses need to invest in supply chain resilience and have contingency plans in place for future disruptions. The outage also highlighted the need for better communication and coordination between supply chain partners, as this will help them quickly identify and respond to problems. Finally, in order to prevent future outages of this type, there’s a need for increased standards and requirements for managing third-party computer updates.
Our take: Importers should use this event as a reminder to focus on supply chain technology and data resiliency, and remember that their supply chain is only as good as the partners they are working with. The importance of ensuring suppliers are well-prepared for disruptions can’t be overlooked.
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The Canadian supply chain is bracing for a potential strike by railroad workers. In anticipation of a work stoppage, logistics companies and brokerages are scrambling to develop contingency plans to minimize disruptions. For example, Maersk is exploring the use of trucks to haul goods within Canada and across the border. And even though the initial strike deadline was postponed, companies should continue to refine their plans, emphasizing the need to be prepared for any potential disruptions, even if there is a delay.
Our take: A work stoppage appears to be inevitable with a HAZMAT embargo announced this week. Contact us with concerns about any specific shipments that may be impacted. We’ll maintain communication with customers as the situation develops.
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The International Longshoremen’s Association (ILA) is gearing up for a potential strike on October 1st, 2024, as contract negotiations with the United States Maritime Alliance (USMX) have stalled. The union plans to finalize its contract demands at a meeting in September and is already preparing its members for a potential work stoppage. The ILA is demanding wage hikes to reflect the record profits of freight companies and opposes the increased use of automation that could lead to job losses. In preparation for a strike, shippers are considering alternative routes for their cargo, such as using West Coast ports. Industry stakeholders are monitoring the situation given the ILA’s history and the potential for a prolonged dispute during peak shipping season.
Our take: This work stoppage will deeply impact port throughput, and will require corrective action by importers if the worst happens. Obviously, this is a situation we are all watching closely. Contact us with questions on possible contingencies as the situation develops. We’ll provide timely updates as warranted.
Read more here.