Weekly Supply Chain Pulse - 3

August 30, 2024 • Estimated Reading Time: 7 minutes

📰 Supply Chain Pulse | Weekly Edition – August 30, 2024

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

📊 Key Metrics

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

Drewry World Container Index (WCI):

Between last week and this week, we have seen a decrease of about 2.49% when looking at the 40ft container Shanghai to New York shipping route. It is good to see a decrease and prices holding somewhat steady in the month of August. We are now 122% higher the average rate in January.

DAT Truckload Freight Rate Index

The DAT is reporting a 1.3% decrease in cost for Van Spot Rates from the previous week. That takes us from $2.01 to $1.984 per mile including fuel surcharges. It is encouraging to see the rates stabilizing. Next week the averages chart for August will be published for our viewing.

Commodity Research Bureau (CRB) Index

This index is a basket of 19 commodities including energy, agriculture, and metals. It’s widely considered a leading indicator of inflation and overall cost trends for goods across the market.

Fluctuations in the CRB Index impact production costs for a wide range of industries, from manufacturing to food production. Monitoring this index helps businesses anticipate price changes in products to adjust their strategies accordingly. If the index is rising, costs across your supply chain are likely to follow, signaling a need for strategic planning. If the index is decreasing, it may signify a slowdown in economic activity. Between last week and this week, there was a 4.47 point increase (1.62%).

Global Supply Chain Pressure Index (GSCPI)

The Global Supply Chain Pressure Index (GSCPI) serves as a crucial indicator for assessing the current state of global supply chains. It combines various indicators such as manufacturing output, inventory levels, and shipping rates to evaluate the overarching pressures impacting global trade and logistics. Monitoring the GSCPI is essential for businesses, as it helps identify potential disruptions, bottlenecks, and shifts in costs that can significantly impact operations and strategic planning.

As of the latest update, the GSCPI has experienced a slight uptick, signaling an increase in global supply chain pressures. This rise is largely attributed to ongoing port congestion and erratic international demand for raw materials, which have extended shipping timelines and elevated costs. For businesses, this indicates potential short-term challenges such as minor delays and increased operational expenses.

At Ena Source, keeping a close eye on the GSCPI enables us to proactively adapt our strategies, ensuring our clients' supply chains remain resilient amidst these fluctuations in order to maintain efficiency and competitiveness.

The article discusses a judicial reform in Mexico that has sparked diplomatic tensions between Mexico, the United States, and Canada. The reform could potentially impact trade agreements and business operations across North America. It involves significant changes that critics argue might weaken judicial independence in Mexico. The U.S. and Canada are concerned about the potential implications for international investments and the rule of law, which are crucial for stable economic relations. No specific timeline for resolving these diplomatic tensions was mentioned, but the situation is being closely monitored by all parties involved.

Why it Matters: For Ena Source and our clients, understanding the legal landscape in key trading partners like Mexico is vital. Such changes can affect supply chain stability and require proactive adjustments in sourcing and partnership strategies.

The Canadian railway strike, which recently sparked concerns over potential supply chain paralysis, has reached a resolution with minimal disruption, according to a new report. The strike, centered around disputes over wages, working conditions, and benefits, was quickly mitigated through government intervention and effective negotiations between the unions and rail companies. Despite fears, the actual impact on freight movement was significantly less severe than anticipated, with most operations resuming swiftly. Last week we discussed the potential severe impacts of this strike on U.S. supply chains. The quick resolution is good news as it demonstrates the effectiveness of proactive measures and government intervention in mitigating supply chain risks.

📈 Giorge’s Weekly Stock/ETF Pick

$SPYI- If you like passive income, you’ll like this pick! SPYI is an actively managed ETF that invests in S&P 500 companies and employs a call options strategy to generate income, paying out dividends monthly with a current yield of 11.74%!! While this high yield will limit potential share price growth over time, it offers a steady income stream. Another key point is that SPYI is tax-efficient due to its low turnover and in-kind transactions, minimizing taxable events. Learn more about its tax benefits here and here.

  • 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.

🚀 Why You Should Consider Ena Source

In today’s rapidly changing supply chain landscape, staying ahead is all about having the right partners. Ena Source specializes in helping small and mid-sized businesses navigate supply chain disruptions, find reliable suppliers, and implement strategic sourcing plans that drive cost savings and operational efficiency. With no upfront costs and a commitment to delivering measurable savings, Ena Source is your trusted partner in turning supply chain challenges into growth opportunities.

Let’s talk about how we can help—reach out to us today!

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HAPPY LABOR DAY TO ALL, ENJOY THE LONG WEEKEND!