#11 - Panama Canal in Crisis, Raw Materials at Risk: Who Will Save Procurement?

🌍 Global Outlook

🔥 Panama Canal Drought: New Risks for the Global Supply Chain

A Critical Logistics Hub Under Pressure

The Panama Canal, one of the world’s most vital trade arteries, is experiencing an unprecedented crisis due to a severe drought. Local authorities have cut daily transits from 36 to 27 ships, with congestion peaking at over 160 vessels waiting to cross. This situation is already disrupting global supply chains.

📌 How does this impact procurement?

• Longer lead times and delays: Ships are being forced to reroute via alternative passages, such as circumnavigating South America, significantly extending transit times. Some vessels have faced up to 21-day delays just to pass through the canal, forcing businesses to rethink their procurement strategies.

• Rising logistics costs: The canal’s reduced capacity has driven up transportation expenses. Ships must burn more fuel on longer journeys, and fierce competition for limited transit slots is pushing freight rates higher. For example, spot container prices on the China-U.S. route surged by up to 36% due to these restrictions, and similar cost pressures are emerging on other trade routes.

• Raw material supply risks: Many of the stranded bulk carriers transport essential commodities like minerals, grains, and fuels. This bottleneck could cause temporary shortages for downstream industries (e.g., reduced metal or grain availability) and increased commodity price volatility.

🔗 Sources: Reuters | McKinsey

🖼️ Meme of the Day

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⚖️ Compliance Focus

📜 The EU Eases Sustainability Reporting, But Businesses Still Bear the Burden

The European Union is working to simplify sustainability reporting, reducing obligations for many companies and better aligning regulations with economic growth goals. However, these measures are still under discussion and not yet approved. What would they mean in practice for businesses?

1️⃣ Fewer companies required to report

Under the CSRD (Corporate Sustainability Reporting Directive), reporting requirements previously applied to a vast number of companies. Now, only those with over 1,000 employees will be obligated to comply, exempting approximately 80% of previously affected firms. SMEs can still opt in voluntarily but with lighter requirements.

2️⃣ Less documentation required

Companies within the scope of the directive will need to submit fewer data points and disclosures, thanks to the simplification of the ESRS (European Sustainability Reporting Standards). Industry-specific standards will no longer be mandatory, significantly reducing the bureaucratic burden.

3️⃣ Focus only on financially relevant activities

With the EU Taxonomy simplification, businesses will only have to report on activities with significant economic impact. Financial institutions will have streamlined templates, and firms with revenues below €450 million can either report only essential KPIs or skip reporting entirely.

4️⃣ Less complex due diligence

The CSDDD (Corporate Sustainability Due Diligence Directive), which requires companies to monitor sustainability across their supply chains, will come into effect in 2028, but with reduced obligations—focusing only on direct business partners. This means fewer compliance burdens on suppliers and subcontractors, while still ensuring ethical accountability in corporate operations.

🔍 In summary: Less bureaucracy, lower compliance costs, and more room for actual investments. The EU is aiming for a balance between sustainability and competitiveness, making procurement more agile without compromising ESG goals.

🔗 Source: The Procurement

🎙️ Podcast

In the latest episode of Compri Bene, we spoke with Giulia Bocchi, Head of Procurement at PBL, a leading company specializing in pharmaceutical and medical machinery design. In a sector where strategic suppliers, certified materials, and cutting-edge technologies are crucial, procurement is far from routine.

🎯 Three key takeaways:

🔍 Procurement pressure – Scarce components and soaring costs made 2022 a pivotal year for assessing which suppliers were truly reliable.

🤝 Beyond supply – In complex machinery, suppliers are also design partners. Strong relationships are a game-changer.

🚀 Digitalization or decline – Managing orders manually is no longer enough. AI is crucial, but the key is finding the right balance between innovation and control.