This Week on Supply Chain Now: August 8th – 14th

An estimated 12% of global trade worth more than $1 trillion traverses the Red Sea each year. When Houthi rebels started attacking commercial vessels in November 2023, ocean carriers began rerouting container ships around Africa’s Cape of Good Horn rather than through the Suez Canal on voyages from Asia to Europe. That greatly increased travel time and costs. As of March of this year, shipping through the Red Sea was still down 70% from before the attacks began, according to The Economist, with many ocean carriers still avoiding the Bab el-Mandeb Strait, which separates the Red Sea from the Gulf of Aden and the Arabian Peninsula. Maritime Industry Caught in the Crosshairs Houthi rebels launched attacks on ships in the Red Sea in response to Israel’s military operations in Gaza. The Houthis attacked more than 100 cargo ships between November 2023 and January 2025. The attacks, with missiles and drones, sunk two vessels and killed four sailors. In late October 2024, a headline in gCaptain read, “Red Sea Is Now So Dangerous Even NATO Warships Are Avoiding It.” “The United States Navy continues to send warships through the Red Sea, but its mission to protect merchant ships – Operation Prosperity…

The logistics and transport sector contributes about 24% of global CO2 emissions. Considering the push for supply chain sustainability across different sectors, the need for lower emissions has been heating up in recent years. With roughly a quarter of the world’s emissions tied to logistics, this industry will possibly be the final frontier to tackle regarding sustainability. While different strategies can be leveraged to reduce the impact of logistics operations on the environment, integrating eco-friendly practices and reducing Scope 3 emissions are some of the most pressing initiatives at hand. This article serves as a guide that will provide actionable steps for companies to embrace innovative solutions and navigate the transition toward a greener future. Scope 3: Understanding Supply Chain Emissions Modern supply chain management outsources different parts of the operation to leverage the expertise of different suppliers and stakeholders. Logistics operations are usually outsourced to third-party providers, and exercising control over their operations and monitoring their sustainability practices and emissions can be challenging. Here’s the harsh reality: no matter how well an organization manages to reduce Scope 1 and 2 emissions, the unaddressed Scope 3 emissions can bring the entire process to a screeching halt. This is especially true…