Weekly Supply Chain Pulse - 4

📰 Supply Chain Pulse | Weekly Edition – September 6, 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 1.63% when looking at the 40ft container Shanghai to New York shipping route. This is the second week in a row where we are seeing a decrease.

DAT Truckload Freight Rate Index

Going into September, the DAT is reporting the national average Van Spot Rate to be at $2.00 per mile. The average rate going into August was $2.01 per mile, so we are seeing a 0.5% decrease. This month’s rate is the second lowest reported in the past year. April’s rate was the lowest reported, which was $1.99 per mile.

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, 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.

Between last week and this week, we have seen a decrease of about 9.62 points, or a 3.43% decrease.

KPMG Supply Chain Stability Index

The KPMG Supply Chain Stability Index leverages advanced analytics and extensive data to assess the resilience of supply chains amidst diverse market volatilities such as geopolitical strife and economic fluctuations. High stress levels in the index indicate significant vulnerabilities and potential disruptions in supply chains, necessitating immediate strategic adjustments to mitigate risks. Conversely, low stress levels signify stable operations and effective risk management, allowing companies to focus on optimization and growth.

We are currently at a very “low stress” period with regards to supply chains. Take a look back in 2022 how stressed supply chains were when we couldn’t get any product. We do not want that again!

🌍 Global Hot Topic: Supply chains are under plenty of stress, but they’re not breaking. Here’s why (Click to read article)

Global supply chains are gradually stabilizing post-pandemic, yet challenges persist, notably from disruptions at major shipping routes like the Suez and Panama Canals, and unforeseen events such as the Key Bridge collapse and labor disputes. These disruptions, alongside inflationary pressures and higher container costs, hint at potential difficulties for global trade. However, improved resilience from diversification and strategic adjustments over the past years have enhanced the ability of supply chains to handle such disruptions. Businesses have adapted by diversifying suppliers, storing more inventory, and absorbing additional costs.

Why It Matters: The evolving global supply chain landscape underscores the necessity for robust, adaptable strategies that Ena Source provides. By assisting companies in enhancing their supply chain resilience, Ena Source enables clients to navigate uncertainties more effectively, ensuring operational continuity and competitive advantage in a fluctuating market.

🇺🇸 U.S. Hot Topic: Port union voices unanimous support for strike, escalating U.S. supply chain fears (Click to read article)

The ongoing contract disputes between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) could potentially lead to a strike at key U.S. ports on the East and Gulf coasts, starting October 1. Such a strike would significantly impact 43% of U.S. imports and could lead to substantial economic repercussions, delaying billions of dollars in trade each month. This situation underscores the critical importance of resilient supply chain management and contingency planning for U.S. businesses. A strike could result in prolonged cargo backlogs, disrupting operations not just domestically but globally, affecting everything from manufacturing to retail sectors. The potential economic fallout highlights the necessity for businesses to have robust strategies in place to navigate and mitigate such disruptions effectively.

📈 Giorge’s Weekly Stock/ETF Pick

$IWMI- Piggybacking off of last weeks pick is another great pick for passive income. IWMI is an actively managed ETF that invests in Russel 2000 companies and employs a call options strategy to generate income, paying out dividends monthly with a current yield of 15.79%! While this high yield will limit potential share price growth over time, it offers a steady income stream. This is a new fund that was started in late June, so the yield may flatten a bit as the months go on. Just like SPYI, IWMI is tax-efficient due to its low turnover and in-kind transactions, minimizing taxable events. Learn more about the ETF and its tax benefits 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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