Monthly Supply Chain Pulse - 19

📰 Supply Chain Pulse | Monthly Edition – June 2, 2025

Your Go-To Source for Supply Chain Insights, Trends, and Actionable Advice

Supply Chain Theme of 2025: Success will be measured by resilience and cost efficiency.

🆕 What’s New at Ena Source

🔧 Supply Chain Support Without the Overhead: More companies are partnering with Ena Source as their outsourced supply chain team, leaning on us for supplier vetting, price benchmarking, and strategic sourcing support. In today’s uncertain economic climate, this model is proving to be a smart and cost-effective way to boost capability without adding headcount. We’re helping our customers move faster, spend smarter, and stay resilient.

“It’s like having a supply chain department without the overhead!”

Don’t forget to check out our new website 👉 www.enasource.com

📊 Key Metrics

Staying competitive means keeping an eye on the data that matters most. Here are five supply chain metrics that we monitor and will provide updates on within each newsletter.

🛳️ Drewry World Container Index (WCI)

The 40ft container shipping rate from Shanghai to New York increased 47.77% this month, from $3500 to $5172.

Why it matters: As we mentioned last month, geopolitical uncertainty and shifting tariff policy are adding pressure to freight markets. Although tariffs are on pause, the rebound in transpacific activity is driving rates up fast. We’re now seeing the ripple effects and a broader rate recalibration may still be ahead.

What to consider: Freight costs are volatile and can heavily impact your landed costs. If you’re importing goods, consider locking in fixed-rate agreements with freight forwarders or negotiate more favorable trade terms with your suppliers. In some cases, it may be the right time to explore reshoring or nearshoring part of your supply chain. We’re actively helping our customers analyze options, reduce shipping exposure, and rebalance their sourcing strategies to keep total costs competitive and predictable.

🚚 DAT Truckload Freight Rate Index

The national average Van Spot Rate increased to $2.00 per mile (3.62% jump).

Why it matters: This uptick likely reflects a seasonal rise in demand as summer shipping ramps up, especially in retail, food, and beverage sectors. While this isn’t a dramatic spike, it’s a reminder that freight markets remain sensitive to economic shifts and seasonal pressures.

What to consider: Even modest rate changes can quietly erode margins, so it’s best practice to review your freight spend quarterly to ensure you’re staying competitive.

🛢 Commodity Research Bureau (CRB) Index

The CRB index measures a basket of 19 commodities including energy, agriculture, and metals. It’s widely considered a leading indicator of inflation, economic health, and overall cost trends for goods across the market. An increase tends to signify an increase in economic activity while a decrease tends to signify a slowdown in economic activity.

The index only increased 0.045% this month.

Why it matters: The minimal movement signals a period of relative price stability across key input materials. With no major spikes or dips, this could indicate temporary equilibrium in supply-demand dynamics, despite broader global uncertainty.

What to consider: We’re helping companies identify which products they purchase are ripe for renegotiation and pushing for strategic cost reductions. On average, we’ve seen supplier concessions around 5%, especially when armed with data-driven arguments.

🇺🇸 🏭 Philadelphia Fed Manufacturing Index

To create this index, the Federal Reserve Bank of Philadelphia surveys around 250 manufacturers, asking about factors like employment, working hours, new and unfilled orders, shipments, inventory levels, delivery times, prices, costs, and business forecasts for the next six months.An index level above zero signifies improving conditions, while a level below zero indicates worsening conditions. Read more here.

84.85% increase month-over-month, a clear rebound from April’s sharp decline.

Why it matters: While manufacturing activity is still contracting, this rebound signals a potential bottoming out and early signs of recovery. The improvement in new orders and hiring suggests firms are gearing up for growth. Elevated price indexes, however, hint at continued inflationary pressure in the supply chain.

What to consider: Now is a good time to evaluate supplier capacity and cost outlooks heading into Q3. Staying proactive with sourcing strategy can help mitigate rising costs and position your business to move quickly as demand rebounds.

🧾 GEP Global Supply Chain Volatility Index

The GEP Global Supply Chain Volatility Index ticked up slightly to -0.39 in April, signaling that global supply chains remain stable with reduced volatility. This marks the tenth consecutive month of negative readings, reflecting ongoing softness in demand, fewer capacity constraints, and lower transportation and input costs.

Why it matters: When the index is above zero, supply chain capacity is being stretched, meaning the higher the number, the more strained the system. When the index is below zero, like it is now, supply chain capacity is underutilized, meaning more availability, fewer delays, and greater negotiating power for buyers.

What to consider: Reduced volatility offers a window of opportunity to renegotiate pricing, consolidate vendors, and rebalance sourcing strategies, especially as global uncertainty looms. We’re working with companies to take full advantage of this calmer period before the next wave of disruption hits.

🌍 Global Hot Topic: Navigating troubled waters: (Click To Read Article)

The Red Sea, a critical route for over 30% of global container traffic, is facing major disruption due to escalating conflict in the region. Attacks on commercial vessels since late 2023 have halved traffic through the Suez Canal and Bab el-Mandeb Strait, forcing many carriers to detour around the Cape of Good Hope which is adding up to 53% more travel distance. This shift has caused CO₂ emissions to spike, freight and insurance costs to surge, and logistics timelines to extend significantly. Red Sea ports have seen sharp drops in volume, while global container rates, especially for Asia-Europe trade, have climbed rapidly.

Why It Matters:
This crisis underscores how geopolitical risk can instantly ripple through global supply chains. For importers and exporters, higher costs, longer transit times, and tighter capacity could strain margins and service levels. It’s a pivotal moment to assess your shipping lanes, diversify routes and suppliers, and build resilience into your sourcing strategy. Ena Source is helping companies navigate these changes in real-time to avoid disruption, maintain cost predictability, and gain nearshoring opportunities before bottlenecks become breakdowns.

🇺🇸 US Hot Topic: US to double tariffs on steel and aluminium imports to 50% (Click To Read Article)

President Trump has announced that the U.S. will double tariffs on steel and aluminum imports from 25% to 50% effective June 4, citing the move as essential to revitalize the domestic steel industry and protect national interests. The announcement was made during a rally in Pittsburgh, alongside news of a proposed $14 billion investment from Nippon Steel in U.S. operations. While this new U.S.-Japan partnership is meant to support U.S. Steel and secure American jobs, many details remain unclear, including ownership and governance structures. Trump claimed this tariff hike would secure the future of American manufacturing, even promising $5,000 bonuses for U.S. steelworkers. However, critics warn that such aggressive trade measures could reignite global trade tensions and hurt diplomatic relations.

Why It Matters:
A 50% tariff on steel and aluminum imports is a massive policy shift with direct implications for supply chain managers, manufacturers, and importers. This move will significantly raise costs for industries reliant on imported metals, particularly those in automotive, construction, and heavy equipment. It could force sourcing shifts, renegotiations, or even domestic production pivots. Additionally, the announcement signals a broader return to protectionist trade policies, injecting new uncertainty into global markets. Companies should assess exposure to metals-based inputs and proactively build contingency plans to minimize disruption and preserve margins in an increasingly volatile trade environment.

📈 Ena Monthly Stock Pick

$MMM – A global industrial powerhouse, 3M manufactures products used in industries from healthcare and automotive to electronics and consumer goods. After years of legal headwinds and restructuring, the company is undergoing a major turnaround, recently spinning off its healthcare division and settling major litigation. With a respectable dividend yield, improving fundamentals, and a renewed focus on core operations, MMM offers a compelling long-term value play at a historically discounted price, making it a potential rebound candidate in a volatile economic landscape.

• As always, it’s not about timing the market, it’s about time in the market

• Disclaimer: This is not financial advice or a recommendation for any investment. The content is for information purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

🚀 Your Supply Chain, Your Competitive Edge

Supply chains aren’t just about logistics, they’re about your bottom line, your growth, and your ability to outpace the competition. At Ena Source, we don’t just find suppliers; we engineer strategic supply chain solutions that cut costs, build resilience, improve reliability, and free up your cash flow.

If you’re curious how much you could be saving, let’s talk. No pressure. No cost. Just clarity.

📩 Click here to book a meeting. Resilient supply chains don’t happen by chance, they happen by choice. Let’s build yours, strategically.

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