It’s a Wrap: Top Supply Chain News for November ’24

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The number of workdays in the month of November may have been cut short by a later-than-usual Thanksgiving break, but that did little to stem the amount of supply chain-related news that took place over the last month. One of the biggest stories to hit the news headlines involved a ransomware attack that originated with Blue Yonder, a UK-based supply chain software vendor that works with multiple different clients in the retail sector.

Starbucks is one of those clients, so word of the breach traveled like wildfire. According to Reuters, the attack affected its ability to pay baristas and manage their schedules. CSO took a deeper dive into the issue. It says the ransomware attack disrupted Starbucks’ backend system but didn’t impact its customer service operations, and that UK retailers Morrisons and Sainsbury’s were also impacted by the attack.

This is just one more example of how crafty the bad actors are getting at exploiting supply chain vulnerabilities, and why companies need to be paying closer attention to their own cybersecurity procedures and those of their third-party vendors. “Supply chain attacks are becoming increasingly common because they allow hackers to target multiple enterprises with a single incident,” cybersecurity specialist Sunil Varkey told CSO. 

Looming Tariffs and Trade Wars 

November was also quite a month for tariff and trade war talk. And while no solid plans have been laid out yet, it does appear that the incoming presidential administration may not only place new tariffs on Chinese imports, but also on goods that are produced in Mexico and Canada. The latest round includes 25% across-the-board tariffs on all goods from Canada and Mexico, both of which will be expected to stem the flow of illegal drugs and immigrants across their borders. 

“Trump has for decades supported the use of tariffs against U.S. trading partners that he views as taking advantage of the United States,” NPR reports. “They were a key part of his first term in the White House and a key campaign pledge during his current campaign.”

It’s important to note that Canada and Mexico are two of the largest U.S. trade partners, and that they’re also part of the U.S.-Mexico-Canada Agreement (the pact that replaced NAFTA). According to NPR, the agreement calls for mostly tariff-free trade among the three countries.

Stocking Up Now

The WSJ says American companies are stocking up now to get ahead of any tariffs that may come to fruition. “American businesses are dusting off a playbook they used during Trump’s first term: stocking up on imported goods before tariffs are enacted,” the publication reports. 

“They are also considering how to cope with the levies if and when enacted—whether they will be able to raise prices and whether they will need to find alternatives to their Chinese manufacturers,” it adds, noting that exports from China surged in October, and that some economists think that was driven in part by front-loading amid uncertainty around election results.  

Electronics buyers could be in for a wild ride in 2025 (and beyond). According to the WSJ, China is the world’s top exporter of goods and the U.S. its top buyer. American companies bought roughly $430 billion of Chinese goods last year, it adds, with computer and electronic products making up the biggest chunk of that total.

Ocean Freight Optimism

The global ocean freight market moved into “recovery phase” in November according to the latest DHL Global Forwarding Ocean Freight Market Update. DHL says freight rates dropped for the past three months from their peak in July, but they’re now picking up again. 

The company also says ocean carriers plan to implement rate hikes, but notes that the sustainability of those higher rates is “uncertain” as carriers haven’t adjusted capacity for the winter season to match lower demand during the off season. “Rates remain significantly higher than at the same time last year,” DHL points out in its report.

“The container shipping sector [has been] disrupted for four years now, with an uncomfortably large range of uncertainties remaining,” DHL adds, noting that the port strikes, frontloading ahead of an early Chinese New Year, the potential tariffs and continued need to divert around the Red Sea are all infusing uncertainty into ocean shipping right now. “As a result of these factors, freight rates are not expected to return to pre- pandemic levels.”