Weekly Supply Chain Pulse - 7

📰 Supply Chain Pulse | Weekly Edition – September 27, 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 three 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 5.28%. These rates have been steadily declining over the past two months. We anticipate rates will continue to drop as the busy shipping season winds down and reduced global trade increases the supply of available containers and ships.

DAT Truckload Freight Rate Index

This week, the DAT reports the national average Van Spot Rate at $1.98 per mile—a $0.01 decrease from last week, marking the lowest rate reported 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 6.34 points, or a 2.27% increase. This marks the third consecutive week of increases in the index.

🌍 Global Hot Topic: US Allies Struggle to Break China’s Dominance of Rare Earths (Click To Read Article)

The U.S. and its allies are working to reduce dependence on China’s dominance in the rare earth minerals market—essential for technology and defense—by funding new domestic production facilities like the planned Lynas Rare Earths Ltd. plant in Texas. Despite these efforts, China controls around 70% of output and over 90% of refining, making it difficult for the U.S. to build a self-sufficient supply chain. Since 2022, falling mineral prices have posed economic challenges for new mining projects, casting doubt on their financial viability. While the U.S. aims to establish a sustainable supply chain by 2027, issues like lower market prices, funding shortfalls, and infrastructure challenges have slowed progress and underline the complexity of developing operations outside China. This push to secure a domestic supply is crucial for national security and technological advancement, as rare earth materials are critical components in everything from electronics to defense systems.

🇺🇸 US Hot Topic: Dock strike: Shippers seek ways to minimize the damage (Click To Read Article)

With the September 30 contract expiration looming, a strike by East Coast and Gulf Coast dockworkers is “seemingly imminent.” The International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) are at a standoff over issues including wages and automation, and no further negotiations are scheduled. If the strike occurs, it will impact 45,000 port workers at 36 locations across the U.S., causing widespread disruptions to major ports from Boston down to Houston. The fallout will extend beyond the strike locations, likely causing delays, congestion at other ports, increased freight rates, and fees for delayed containers. Businesses are already working on mitigation strategies, such as using West Coast ports, shifting to alternative modes of transport, delaying shipments until after the strike, and budgeting for increased fees. Experts suggest proactive measures like expedited shipments, reallocation of inventory, locking in alternative transportation capacity, and open communication with stakeholders to navigate this challenging situation.

Why It Matters:
The potential dock strike could have significant ripple effects on supply chains across the U.S., impacting delivery timelines and costs. Ena Source can help companies respond quickly by offering alternative shipping solutions and developing reliable domestic suppliers, ensuring supply chain continuity. This emphasizes the crucial need for flexibility and preparedness in supply chain operations.

📈 Giorge’s Weekly Stock/ETF Pick

$IDU- This is an ETF that tracks the performance of U.S. utility companies involved in electricity, gas, water, and waste industries. This is an attractive ETF because utilities are considered a necessity and demand for them will continue to increase as our population grows and we stand up more manufacturing in the US. The ETF pays a dividend, YTD this yield is 2.24%. YTD this ETF has produced a 25.92% return!

• 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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