Weekly Supply Chain Pulse - 6

📰 Supply Chain Pulse | Weekly Edition – September 20, 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 declined by 4.46%. This rate has been decreasing for the past 2 months, with a whopping decrease of 33.79% between July 18th and today. This trend is likely due to reduced global trade which increases the supply of available containers and space of ships. This may also be attributed to the economic uncertainty surrounding the US economy with the election coming in less than 2 months.

DAT Truckload Freight Rate Index

This week, the DAT is reporting the national average Van Spot Rate to be at $1.99 per mile. This is the same as last weeks report as well as equal to the lowest recorded rate in the past year.

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 an increase of about 6.83 points, or a 2.50% increase.

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 August, the index stood at -7.00, indicating a forecasted decline in manufacturing activities, but September brings a more optimistic outlook with a reading of 1.70. Read more here.

🌍 Global Hot Topic: Pagers attack brings to life long-feared supply chain threat (Click To Read Article)

The deadly attack on Hezbollah’s pager network has highlighted a critical weakness in global electronics supply chains. Israel allegedly exploited vulnerabilities in these devices to cause mass explosions, drawing attention to the long-feared risk of tampered technology infiltrating supply chains. This event may accelerate efforts by governments to localize critical tech manufacturing and reduce reliance on foreign suppliers. The growing complexity of modern supply chains makes it challenging to trace the origin of devices, exacerbating security concerns.

Why It Matters: This incident underscores the importance of securing supply chains and ensuring that product integrity is maintained throughout the process. Ena Source’s expertise in carefully managing supply chains and thoroughly vetting suppliers can help businesses mitigate risks and ensure the quality and security of their products, even in an increasingly volatile global environment.

🇺🇸 US Hot Topic: Largest port on U.S. East Coast, New York/New Jersey, begins prepping for what could be first union strike since 1977 (Click To Read Article)

The Port of New York/New Jersey is preparing for a potential work stoppage by the International Longshoremen's Association (ILA) as contract negotiations stall ahead of the October 1 strike deadline. A strike would shut down major East and Gulf Coast ports, impacting up to 49% of U.S. imports and costing billions in trade. Businesses are rerouting cargo to the West Coast in anticipation of disruptions. Logistics companies and port authorities are implementing contingency plans to minimize the effects on supply chains and ensure cargo flow before any stoppage.

Why It Matters:
The looming strike could severely disrupt supply chains, particularly for businesses relying on East Coast ports. Ena Source's proactive supply chain management and diversified sourcing strategies can help mitigate potential delays, ensuring that critical products reach their destination despite significant disruptions.

📈 Giorge’s Weekly Stock/ETF Pick

$QQQ- Let’s go back to the basics this week, especially given the uncertainty in the market surrounding the Fed’s 0.50% rate cut. QQQ is an ETF that mirrors the Nasdaq-100 Index, which comprises 100 of the largest non-financial companies listed on the Nasdaq. The ETF is heavily weighted toward the technology sector, with holdings in companies like Apple, Microsoft, Amazon, and Alphabet, making it a popular choice for investors looking for exposure to growth-driven tech stocks. It has a relatively low expense ratio and has produce an 18.03% return YTD!

• 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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