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Week in Review: The Impact of Crisis, Crime & Cutting-Edge Solutions—from Sea to Shelf

February 8, 2024

July 2, 2024


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Get ready for a fascinating trip through today's pressing global issues and innovations in this latest issue of our newsletter. Here we tackle the latest in the Red Sea and its ripple effect on Europe's food trade. At the same time, The Boxery's cutting-edge cold shipping boxes promise a revolution in logistics. We also peek into the struggles of Southern European exporters amidst mounting transport challenges, and explore the hidden ESG risks in the U.S. food supply chain—as revealed by Moody’s. On a different note, we take a look at some more high-stakes crime stories including the bust of a massive cargo theft ring in Los Angeles—and an LAPD crackdown on a huge Nike product heist. Engaging, informative, and always current: this edition is a must-read for those who like to stay a step ahead!

Red Sea Crisis Impacts Europe’s Fresh Food Trade

The ongoing crisis in the Red Sea is becoming increasingly disruptive, with Europe's fresh food trade bearing the brunt. With exporters and shippers equally impacted, where do we go from here?

Escalating Transport Challenges

The conflict has caused shipping companies to halt operations through the strait of Bab el-Mandeb, rerouting around the Cape of Good Hope. This change adds up to three weeks of transport delay to and from Europe—and a five-fold surge in container costs. Consequently, perishable goods such as fruits and vegetables are more likely to spoil during transit. Marco Forgione of the Institute of Export & International Trade highlights the risk extending beyond these categories, potentially impacting the broader food economy—including meat, grains, and tea.

Southern Europe's Export Woes

Southern European countries such as Italy, Greece, and Cyprus are particularly hard hit. Their exports now face lengthy detours, jeopardizing the timely delivery of perishables to markets in the Middle East and Asia. This situation poses a significant threat to goods worth billions of euros. For instance, in Italy, exports such as apples, pears, and vegetables to Saudi Arabia and the UAE face substantial losses due to disruptions during peak shipping periods. At the same time, these delays risk flooding the EU market with produce, which may unsettle prices.

Cargo Theft Ring Busted

Authorities in Los Angeles County have apprehended a suspect in a significant cargo theft case involving a large number of metals and other stolen items.

Major Seizure

On January 27, 2024, the Los Angeles County Sheriff's Department's Major Crimes Bureau Organized Retail Theft and Cargo Theft Task Force made a pivotal arrest in Acton, CA. Khatchik Aleksanian, 44, was detained following a search warrant execution at his residence. This operation led to the discovery of over 130,000 pounds of copper and brass, valued at approximately $1.2 million. Moreover, the stolen cargo—originating in Chicago—had been distributed across various Los Angeles County locations.

Arrest & Charges

Investigators not only seized the metals but also confiscated 50 brand-new big rig tires valued at $50,000, as well as 10 firearms ranging from handguns to rifles and assault weapons—all of which were accessible to a minor present at the scene. Aleksanian now faces charges of receiving stolen property and endangering a child, with his bail set at $20,000.

Moody’s: U.S. Food Supply Chains are an ESG Risk

Leading risk assessment firm Moody’s recently highlighted significant Environmental, Social, and Governance (ESG) risks within the U.S. food supply chains. Based on some of their disturbing findings, it emphasizes the urgent need for proactive measures.

Prevalence of Forced Labor in U.S. Food Production

Despite common perceptions associating human rights violations with developing countries, Moody’s analysis reveals these issues are also prevalent in the U.S. According to the International Labor Organisation (ILO), over 50 million people were trapped in “modern slavery” in 2021, with 28 million in forced labor—including more than three million children. Notably, the ILO reports a sharp increase in these cases over the past five years, with women and children being disproportionately affected. The U.S. Bureau of International Labor Affairs (BILA) maintains a list of goods suspected of being produced using child or forced labor, including everyday items found in American grocery stores including rice, coffee, and fish from various countries.

Study Highlights Domestic ESG Risks

A 2023 study published in "Nature," conducted by the University of Nottingham and the Friedman School of Nutrition Science, also reveals some startling figures. It found that 62% of forced labor risks in the U.S. food supply chain—excluding seafood—originate from within the country. The study underscores how poverty, language barriers, and uncertain immigration statuses increase vulnerability to exploitation. Moody’s cites a case from November 2023 in which a U.S. confectionery firm faced charges for sourcing cocoa using child labor. This example underscores that forced labor can occur anywhere in the supply chain. With increasing global focus on anti-slavery legislation, Moody’s warns that companies must diligently monitor their supply chains to avoid reputational damage and financial penalties.

The Boxery Revolutionizes Cold Chain Logistics with Innovative Cold Shipping Boxes

The Boxery, a leader in packaging solutions, recently unveiled a groundbreaking line of advanced cold shipping boxes. The aim is to address long standing logistical challenges of cold chain transportation—often associated with increased operational costs and complexities—while bolstering efficiency and environmental sustainability.

Advancements in Temperature-Sensitive Shipping

The Boxery is stepping up to meet the growing need for dependable cold shipping options, which can be a game changer in fields such as pharmaceuticals, food, and biotech. Their latest boxes come packed with advanced insulation technology, providing unmatched thermal protection during transit. This breakthrough is about reducing the risk of spoilage and maintaining quality—tackling the age-old problems of cold chain logistics head on.

Commitment to Eco-Friendly Practices

Embracing the surge in demand for sustainable supply chain solutions, The Boxery has innovated its cold shipping boxes using recyclable materials. This green leap forward isn't just about keeping the planet happy; it's also answering the call from customers craving eco-conscious shipping solutions. These boxes are groundbreaking for anyone needing to keep things cool on the go—offering a solid, earth-friendly option to transform cold chain logistics.

Sneaker Heist: LAPD Nabs Suspect Accused of Stealing $5 Million of Nike Products

The Los Angeles area witnessed another significant cargo theft case recently. This incident—an organized retail crime case—led to the arrest of a suspect linked to the theft of Nike products valued at approximately $5 million.

Major Operations in Hollywood & Hawthorne

On January 27, 2024, LAPD detectives—alongside teams from the Major Theft Task Force and the Organized Retail Crimes Task Force—executed search warrants in Hollywood and Hawthorne, CA. The latter location, identified as a warehouse, was a key site where the suspect was spotted delivering stolen Nike items. The comprehensive search, conducted with the aid of Nike’s Global Security Director and supply chain investigators, uncovered thousands of stolen Nike shoes, clothing, accessories, and rare prototypes, cumulatively worth about $5 million.

Arrest & Charges

The investigation culminated in the arrest of 37-year-old Roy Lee Harvey Jr., suspected of receiving, redistributing, and reselling high-value stolen property. Charged under California Penal Code 496(a) for handling stolen property, Harvey Jr. now sits behind bars. This takedown is a big win in the fight against organized retail crime, showcasing the teamwork needed between law enforcement and corporate security to crack down on large-scale, elaborate theft operations.

Tive's Role in Shaping Resilient Supply Chains

The latest global crises, cutting-edge solutions, and eye-opening supply chain insights emphasize the urgent need for innovation and adaptability. From the ripple effects of the Red Sea crisis on Europe's food trade to the breakthrough cold shipping boxes by The Boxery to cargo theft incidents, these challenges are as diverse as are the opportunities they create. Tive's solutions are built to solve these complex problems via:

  • Trackers: Revolutionize your shipment tracking with Tive's advanced Solo 5G trackers, offering real-time location and condition monitoring to ensure the security and integrity of your cargo.
  • Tive Tag: Enhance perishable shipment protection with Tive Tag—an affordable and reusable paper-thin temperature logger—to verify that your goods have remained pristine throughout transit.
  • Platform: Streamline your supply chain management with Tive's intuitive cloud platform, offering comprehensive visibility, analytics, and integration capabilities for seamless shipment tracking and monitoring.
  • Industries: Tive caters to a diverse range of industries, ensuring tailored solutions for unique supply chain challenges—from perishables to high-value goods to transportation and logistics to pharmaceuticals…and beyond.
  • 24/7 Live Monitoring team: This team is available to help ensure that your shipments are constantly watched over and managed—to guarantee timely and secure delivery.

Arm yourself with innovation: let Tive lead the way in transforming your supply chain operations. Embrace the future of logistics–get started with Tive today.

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