Posts Tagged ‘supply chain risks’

When pandemic strikes: does your company have an action plan?

October 17, 2014 Leave a comment

hazmatFollowing reports of the first Ebola transmissions on U.S. soil, the threat of the disease continues to escalate across the world. The Ebola outbreak is only the latest version of potential worldwide pandemics with serious economic impacts affecting supply chain and business operations for companies of all types. Industries like mining, agriculture and energy face the greatest risks with Ebola, since these groups have a high number of operation bases and workers in the affected nations. However, companies that do not operate in Africa may also experience business interruptions when employee access to the workplace is compromised.

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Drug heists and supply chain theft: a lesson in susceptibility

August 21, 2012 Leave a comment

The FBI recently outlined a high-profile drug heist investigation in which they caught the team responsible for stealing $80 million worth of commercial drugs in 2010, making it the largest in U.S. history. The same thieves were also responsible for several other similar warehouse break-ins, including a $4.3M theft of Advair Diskus from GlaxoSmithKline (GSK) in August 2009 and a multi-million cigarette heist in July 2009.

Looking back at these incidents through this valuable report, some important lessons for anyone involved in the drug supply chain can be learned by applying some obvious risk management and loss prevention procedures to help prevent a break-in or at least minimize a property loss: Read more…

2012 Property renewals for tech companies: start early

December 22, 2011 Leave a comment

Technology companies that have owned manufacturing operations or outsource their manufacturing to suppliers in Asia should get an early start on their 2012 Property Insurance Renewals.  Outside of the insurance realm, companies should seek diversification in their supply chain whenever possible to help mitigate a concentration of risk in catastrophic prone countries.

The credit rating firm, Fitch Ratings, said in a new report that the “reinsurance industry will most likely try to raise catastrophe premiums across the world to try to absorb the steep losses from natural disasters in the Asia-Pacific region.” This will impact technology companies who rely on outsourced Asian manufacturing locations and purchase Property and Business Interruption coverages in order to protect their supply chain. Read more…

Insurers will face hefty flood of claims from Thailand

Business Insurance has reported an estimated $5 billion in economic damage and has prompted $3.3 billion in insurance claims making it the worst flooding in Thailand in more than 50 years. Some are saying the payouts will even surpass those from tsunami in Japan, and the damage figures are still rising.

The widespread flooding has taken over much of the country and it is now causing production disruptions on a global scale. To further complicate the situation, we are seeing many companies suffer who manage a tight supply chain in order to minimize holding expensive inventories. Also feeling the impact are those tech companies who rely primarily on outsourced labor, since Thailand often serves as a partner. Read more…

Strike in Greece causing delays

Major interruptions to transportation services in Greece are expected today and tomorrow as a result of a 48-hour strike by public and private sector workers. According to FreightWatch Intelligence Division, public transportation and commercial flights will be affected by the strike along with ferries serving Greek islands, local and national train services. Companies transporting goods throughout this area are urged to plan supply chain activities taking into account these events.

As for potential insurance coverage in the event of a strike, most Ocean Marine (aka Worldwide Transit) policies are written in accordance with the standard policy clauses established by the American Institute of Marine Underwriters (AIMU). At the time of purchase, a client has the option to elect or exclude coverage for War, Terrorism (including TRIA) and Strikes Read more…

Thailand floods lead to industrial disruptions

October 18, 2011 Leave a comment

Our WBN ( partner in Thailand, Asianet, reports extreme flooding conditions in major areas of the country. We quote them verbatim as follows:

“Great efforts were made to protect Bangkok and the industrial estates. Unfortunately these were not all successful and 3 metre high walls and dams collapsed. Many large industrial estates are submerged under up to 2 metres of water. Pumps are working but there is nowhere to pump the water.

The largest industrial estates which are submerged are Rojana, Hi-Tech, Bang Pa, and In Navanakorn. Read more…

Somali pirate attacks increasing and costing more

The risks to ships transiting the pirate-infested waters off the coast of Somalia are on the rise. Last year, the average ransom paid to Somali pirates was $5.4 million compared with $150,000 in 2005. Just last week, Somali pirates captured a U.S.-bound tanker carrying around $200 million worth of crude oil in the Indian Ocean in one of the biggest hijackings in the area to date. The Irene SL, taken along with 25 crew members on board, was carrying 2 million barrels of oil which amounts to one-fifth of daily U.S. crude imports. The hijacking came a day after an Italian tanker carrying oil worth more than $60 million was also taken by Somali pirates.

A report today from Business Insurance outlined the latest hot spots in kidnap & ransom risks, saying that Somali piracy and Mexican kidnapping are on the upswing. Read more…