The new year has arrived and so has the new wave of noteworthy news coming out of the supply chain space. Last year there were widespread strikes of ports on the East Coast, they were halted by a bandaid solution but the United States Maritime Alliance is set to resume contract negotiations on January 7th. The DOE is still issuing large federal loans to startup companies, Novonix a synthetic graphite startup just received a $755 million loan to support its mission and reach its goal of producing 31,500 metric tonnes of synthetic graphite. A first-of-its-kind research project was published by the FAIRR Initiative, addressing human rights violations and overfishing in the seafood supply chain. Lastly, West Central Ag services were acquired by CHS forming a new ag retail business and BSR released its 2025 supply chain outlook. As the year marches on, you can count on weekly updates here!
Now let’s get into the supply chain news from this week!
Following Last Year’s Port Strikes, Talks Regarding Contracts Are Back On
Negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) are set to resume on January 7, just days before the current contract extension expires on January 15. The talks, which had been stalled since early November over disagreements on automated container handling technology, are crucial to avoid a potential strike that could disrupt East and Gulf Coast ports. The resumption follows a three-day strike in October and recent container surcharges announced by liner operators in anticipation of a strike. The sides have been informally discussing the issues, and there is hope for a new agreement or another extension to prevent further disruptions.
DOE Issues $755 Loan for Tennessee Synthetic Graphite Facility
Novonix has secured a $754.8 million loan from the U.S. Department of Energy to build a synthetic graphite facility in Chattanooga, Tennessee. This facility will produce material for electric vehicle (EV) battery anodes, reducing reliance on Chinese imports. The project is expected to create 450 jobs and produce 31,500 metric tonnes of synthetic graphite annually, supporting 325,000 EV batteries. Novonix is also collaborating with local educational institutions to create STEM-focused training programs and offer employment opportunities to disadvantaged groups. The facility aims to reach full production capacity by the end of 2028.
The FAIRR Initiative, supported by investors with $75 trillion in assets, is working with seven major seafood companies to improve supply chain traceability, addressing risks like human rights violations and overfishing. Despite recognizing these risks, only two companies have comprehensive traceability commitments. The initiative aims to ensure full-chain traceability for all seafood and aquaculture feed ingredients, aligning with regulatory measures and sustainability goals. The first year of engagement revealed a need for stronger commitments, and the initiative will continue to provide technical support to drive progress in the second year.
CHS Closes its Acquisition of West Central Ag Services
CHS has completed its acquisition of West Central Ag Services, forming a new ag retail business unit called CHS West Central. This merger, approved by over 70% of West Central Ag Services’ members, integrates West Central’s grain and agronomy services into CHS’s extensive supply chain, which spans over 450 communities across 16 states. Jesse McCollum, the former CEO of West Central Ag Services, will lead the new unit as senior director of operations. The merger also includes the full ownership of Central Plains Ag Services, previously a joint venture between the two cooperatives.
BSR Releases Their “Future of Supply Chains 2025” Outlook
The “Future of Supply Chains 2025” primer by BSR outlines key procurement priorities and forces of change that will shape supply chains. It emphasizes the importance of cost savings, supply base rationalization, risk management, strategic foresight, and supplier collaboration. The primer also highlights the impact of technology, climate change, human migration, shifting consumer demands, and trade uncertainties on supply chains. BSR recommends planning for automation and migration impacts, building regional sourcing hubs, digitalizing supplier assessments, enhancing transparency, and embedding climate-smart planning to create resilient and sustainable supply chains.
