Weekly Supply Chain Pulse - 11

📰 Supply Chain Pulse | Weekly Edition – October 25, 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, the 40ft container shipping rate from Shanghai to New York saw a decline of 6.12% this week.

DAT Truckload Freight Rate Index

This week, the DAT reports the national average Van Spot Rate at $1.99 per mile, reflecting a 1.5% decrease from last week. The Northeast region remains the lowest-cost throughout the US, with an average rate of $1.85 per mile.

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. This past week, the index rose by 1.67 points (0.59%), ending a two-week streak of declining values.

Purchasing Managers Index (PMI)

The PMI is an economic indicator derived from monthly surveys of private sector companies, measuring the performance of the manufacturing and services sectors. It covers metrics such as new orders, inventory levels, production, supplier deliveries, and employment. A PMI above 50 indicates expansion, while below 50 suggests contraction. Keeping track of PMI data can help business owners anticipate changes in economic activity, demand for products, and supply chain conditions.

🌍 Global Hot Topic: Election-year effect: The scenarios that could impact the supply chain (Click To Read Article)

The upcoming U.S. presidential election brings significant implications for supply chain management and procurement teams, as businesses must prepare for potential changes in regulations and market dynamics. The recent International Longshoremen’s Association strike highlighted the need for visibility and flexibility in adjusting production and logistics plans. With ongoing geopolitical risks, such as trade restrictions and regulatory changes, organizations must anticipate disruptions by building resilient, adaptable supply chains. Investing in technology like AI and collaborative supply chain networks can enable businesses to identify risks early and maintain a competitive edge amidst uncertainty. Proactive measures are crucial for navigating market volatility and sustaining operations.

Why It Matters: Ena Source understands the challenges of managing supply chains during volatile times. By partnering with us, companies can enhance their supply chain resilience, leverage diverse supplier networks, and implement strategic sourcing practices to stay ahead of disruptions. Our solutions empower businesses to adapt quickly and minimize risks associated with geopolitical changes, regulatory shifts, and supply chain bottlenecks.

🇺🇸 US Hot Topic: Port of LA Freight Rail Delays (Click To Read Article)

Recent record imports at West Coast ports, largely due to the diversion of cargo from the recent East Coast strike and ongoing Red Sea issues, are leading to rail congestion. The Port of Los Angeles has seen rail dwell times extend, with nearly half of containers waiting over nine days to move, up from a previous average of four days. Despite the congestion, port operations are not severely affected, though executives are closely monitoring factors such as the upcoming U.S. election and early Lunar New Year. At the Port of Long Beach, rail delays are also present but not causing significant operational issues, as the port has seen a rise in on-dock rail activity. To mitigate delays, some logistics firms are bypassing port rail terminals by transferring freight directly onto trucks for inland delivery. With rail cars in short supply, continued pressure on West Coast logistics is expected through the holiday season, potentially impacting timely deliveries.

📈 Giorge’s Weekly Stock/ETF Pick

$SCHB- The Schwab U.S. Broad Market ETF tracks the Dow Jones U.S. Broad Stock Market Index, offering exposure to the entire U.S. stock market, including small, mid, and large-cap stocks across various sectors. This ETF is ideal for investors seeking diversified equity exposure with low expense ratios (0.03%), providing a broad representation of the overall U.S. economy.

• 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 that drives 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.

Ready to enhance your supply chain? — Reach out to us today!

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