Weekly Supply Chain Pulse - 12

📰 Supply Chain Pulse | Weekly Edition – November 1, 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 0.47% this week.

DAT Truckload Freight Rate Index

The national average Van Spot Rate reported by DAT this week stands at $2.02 per mile, marking a 1.51% increase from the previous week.

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. Over the past week, the CRB index declined by 3.18 points, or 1.12%.

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. In September, the index registered at 1.70; however, October shows a more optimistic outlook with a reading of 10.30.

🌍 Global Hot Topic: Responding To China’s Growing Influence In Ports Of The Global South (Click To Read Article)

Global port infrastructure is becoming a critical factor in the geopolitical landscape, with China rapidly expanding its influence. China now leads in maritime trade, shipbuilding, and port ownership, positioning itself as a dominant force in the Global South. This expansion, particularly through the Belt and Road Initiative (BRI) and the Maritime Silk Road, gives China strategic leverage in various parts of the world. China's port projects, while accelerating development in some regions, often come with predatory financing and potential dual commercial-military use, which raises security concerns for the U.S. In response, policy recommendations call for the U.S. to enhance its infrastructure investments, establish partnerships, and leverage multilateral development banks to counter China's influence in these crucial areas.

🇺🇸 US Hot Topic: More US-based Companies To Shift Supply Chain Operations Into Americas (Click To Read Article)

A recent KPMG survey of U.S.-based executives reveals that 69% of U.S.-serving supply chains will be based in North and South America within the next two years, up from 59%. The U.S. and Canada are projected to see a slight decrease in their shares of these supply chains, while Mexico is expected to rise significantly as a nearshoring hub, climbing to 36% of operations. This trend underscores a strategic pivot toward "localized" supply chains, as recent global crises—such as the COVID-19 pandemic and Panama Canal drought—have highlighted the vulnerabilities of longer, global trade routes. The shift also includes a reduction in supply chain locations and markets served to enhance efficiency and flexibility, reflecting a growing focus on streamlined, resilient models. Notably, some companies are adopting a "China Plus One" strategy, diversifying production with one additional country to mitigate risks while maintaining global reach.

Why It Matters:
Ena Source is well-positioned to support businesses navigating this shift towards more localized and resilient supply chains. With expertise in strategic sourcing, Ena Source can help companies identify reliable suppliers in Mexico, the U.S., and other nearby markets, optimizing for cost-effectiveness, quality, and reduced lead times. By leveraging our extensive network and knowledge, Ena Source enables businesses to adapt to the evolving supply chain landscape, minimizing risks while enhancing operational efficiency and resilience.

📈 Giorge’s Weekly Stock/ETF Pick

$SPYV- This is an ETF that is designed to provide exposure to large-cap U.S. companies within the S&P 500 that are considered undervalued relative to the broader market. This ETF emphasizes stable, mature companies that may offer more consistent returns, especially during market downturns, making it an attractive choice for conservative investors looking to add a value tilt to their portfolio. With a low expense ratio of 0.04%, SPYV provides cost-effective access to the value segment of the S&P 500, appealing to those seeking long-term growth with a value-oriented strategy.

• 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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