Supply Savvy Podcast Series – Episode 4: Exiting Contracts and Handling Suppliers in Distress

Exiting Contracts and Handling Suppliers in Distress

In this final episode of Supply Savvy, our podcast series with the Food and Drink Federation (FDF), partners Nicola Smith, Simon Jones and Victoria Callicott and director Ollie Ward-Jones cover strategies for exiting contracts and dealing with supplier insolvency. The hosts discuss termination clauses, risks of incorrect termination, due diligence, contingency plans and red flags for supplier distress. Practical tips and real-life examples are provided to help businesses navigate these challenging situations.

You can listen to this podcast episode on the FDF podcast website.

Supply Savvy Podcast Series – Episode 3: Navigating Regulatory Compliance Issues: A Case Study of Products Contaminated With Peanuts

Navigating Regulatory Compliance Issues: A Case Study of Products Contaminated With Peanuts

This latest episode of our podcast series with the Food and Drink Federation (FDF), Supply Savvy, focuses on handling regulatory compliance issues, using a case study of peanut contamination in products. Partner Nicola Smith leads the discussion with partner Simon Jones, partner Victoria Callicott and director Ollie Ward-Jones on immediate actions, communication with stakeholders, legal obligations, corrective actions and potential claims for compensation. The importance of legal privilege and practical steps to manage contamination issues are highlighted.

You can listen to this podcast episode on the FDF podcast website.

Supply Savvy Podcast Series – Episode 2: Navigating Daily Challenges in Supply Agreements

Supply Savvy Podcast Series: Navigating Daily Challenges in Supply Agreements

In the second episode of our Supply Savvy podcast series, partners Nicola Smith, Simon Jones and Victoria Callicott and director Ollie Ward-Jones explore common day-to-day issues in supply agreements, such as delivery delays, quality discrepancies and communication breakdowns, as well as how these issues should be handled. They emphasise proactive approaches, clear communication channels, detailed contracts and contingency plans to manage these challenges effectively.

We have launched Supply Savvy in collaboration with the Food and Drink Federation (FDF). You can listen to this podcast episode on the FDF podcast website.

Supply Savvy Podcast Series – Episode 1: The Recipe for Perfect Contracts

In collaboration with the Food and Drink Federation (FDF), we have launched a new four-part podcast series, Supply Savvy, aiming to provide valuable insights into supply chain risk management in the food and drink industry.

Hosted by partner Nicola Smith, who specialises in regulatory compliance, alongside supply chain risk management and litigation partner Victoria Callicott, commercial partner Simon Jones and director Oliver Ward-Jones, who specialises in supporting suppliers in distress scenarios, the series sets out how businesses can navigate daily or common supply chain challenges.

In the inaugural episode, “The Recipe for Perfect Contracts”, our UK legal experts delve into the critical role that well-crafted contracts play in mitigating supply chain risks. You can listen to this podcast episode on the FDF podcast website.

Germany’s Supply Chain Law at a Crossroads: the Implications of the Proposed Shift to the CSDDD

Please contact Andreas Fillmann   with any questions.

In April 2025, CDU, CSU, and SPD – the coalition parties almost certainly forming Germany’s next federal government – announced their intention to repeal the German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz (LkSG)) as part of a broader initiative to reduce administrative and economic burdens. According to the coalition agreement, the LkSG shall be replaced with legislation implementing the EU Corporate Sustainability Due Diligence Directive (CSDDD) in a bureaucracy-light and enforcement-friendly manner. The reporting obligations under the LkSG shall be abolished immediately, and enforcement of existing obligations shall be suspended, except in cases of grave human rights violations, until the new EU-aligned framework enters into force and is implemented in German law.

Read the full insight here

Understanding Force Majeure in an Uncertain World

Please contact Max Rockall and Tim Flamank with any questions.

Over the years, we’ve encountered numerous supply chain challenges, and one recurring issue is the incorrect application of force majeure of contract. Often, suppliers attempt to invoke these clauses to escape their contractual obligations when the contract becomes unprofitable or too costly due to rising energy and fuel prices. This misuse could become more prevalent if suppliers are held accountable for tariffs affecting supply.

For a deeper understanding of how force majeure truly operates, Max Rockall and Tim Flamank have prepared an insightful article.

Read the full insight here

Cross-Post from The Trade Practitioner – On March 14, 2025, the US Federal Maritime Commission (FMC) announced the initiation of a nonadjudicatory investigation into transit constraints at international maritime “chokepoints.”

This is a cross-post from The Trade Practitioner. Please contact D. Michael Kaye,  Katie Pritchard,  Ruaridh Guy, Joel Cockerell, Michael J. Wray with any questions.

The Federal Register notice initiating the investigation identified the following seven global maritime passageways that may be subject to such constraints: (1) the English Channel, (2) the Malacca Strait, (3) the Northern Sea Passage, (4) the Singapore Strait, (5) the Panama Canal, (6) the Strait of Gibraltar and (7) the Suez Canal. The FMC announcement is another sign of the continued merger of national security, trade issues and global shipping and transportation issues. Continue reading here.

Territorial Supply Constraints

Please contact Gerard McElwee and Oliver Geiss with any questions

Territorial Supply Constraints (TSCs) refer to a range of practices used by brands and manufacturers that limit where retailers, wholesalers and distributors source their products – for example, preventing them from buying products from outside the country where they operate.

EU competition law does not outright prohibit TSCs, as TSCs are necessary in some situations and indeed can lead to lower prices for consumers. However, the Commission has conducted several investigations into restrictions on cross-border trade, and has taken enforcement action in notable cases. The Commission adopted two decisions prohibiting TSCs in 2024, imposing fines in both cases, and the trend of increased enforcement is continuing; in March 2025, the Commission confirmed that it had conducted unannounced inspections (dawn raids) in the soft drink industry to investigate suspected restrictions on trade between EU member states. In addition to enforcement action, TSCs are increasingly subject to policy initiatives aimed at increasing free trade.

We anticipate that TSCs will remain in focus in the short-to medium-term. Any changes to how TSCs are addressed – including a possible blanket ban, as endorsed by some EU member states – would have a significant impact on operators at all levels of the supply chain from manufacturing to wholesale, distribution and retail, and across all industries (both goods and services).

Read the full insight here

Copper Crisis?  The Economic Impacts of a Copper Import Tariff

On February 25, 2025, President Trump signed an executive order directing the Secretary of Commerce to investigate an alleged national security threat to the copper supply chain under Section 232 of the Trade Expansion Act and to report his findings and remediation recommendations.[1]

Why Copper?

Copper is crucial for defense, infrastructure, electronics, and emerging technologies, making it the U.S. Defense Department’s second-most used material. While the United States maintains significant copper reserves, it only produces half of the refined copper it consumes, making it heavily reliant on foreign suppliers. China controls approximately 50% of global smelting and refining capacity, although the United States sources the majority of its foreign copper from Canada, Chile, and Mexico.[2] This reliance, along with potential foreign market manipulation, is believed to pose a national security risk to America’s supply of raw copper, copper concentrates, refined copper, copper alloys, scrap copper, and copper derivative products.[3] Currently, no tariffs or quotas exist on copper imports.

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Cross-Post from Trade Practitioner – Final Rule Implementing ICTS Supply Chain Executive Order 13873 In Effect

This is a Cross-Post from the Trade Practitioner Blog.

On May 15, 2019, President Trump issued Executive Order 13873 – Securing the Information and Communications Technology and Services Supply Chain (“EO” or “EO 13873”). After taking comments on a proposed implementing rule, the Department of Commerce (“DOC” or “Secretary”), on the very eve of the Biden Administration taking office, issued an Interim Final Rule…… Continue Reading

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