Weekly Supply Chain Pulse - 8

📰 Supply Chain Pulse | Weekly Edition – October 4, 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 1.76%. These rates have been steadily declining over the past two months. Even with the recent strike at the US East Coast Ports, we anticipate a continued slight decrease in freight rates as global demand slows.

DAT Truckload Freight Rate Index

This week, the DAT reports the national average Van Spot Rate at $2.02 per mile—a $0.04 increase from last week. This increase is likely due to supply chain disruptions caused by the recent destruction from Hurricane Helene.

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. ver the past week, the index increased by approximately 0.97 points (0.34%), marking its fourth consecutive week of growth.

Global Supply Chain Pressure Index (GSCPI)

The Global Supply Chain Pressure Index (GSCPI) serves as a crucial indicator for assessing the current state of global supply chains. It combines various indicators such as manufacturing output, inventory levels, and shipping rates to evaluate the overarching pressures impacting global trade and logistics. Monitoring the GSCPI is essential for businesses, as it helps identify potential disruptions, bottlenecks, and shifts in costs that can significantly impact operations and strategic planning.

The latest update, which contains data from August, shows a slight increase in global supply chain pressures. This rise is likely due to geopolitical issues, not to the US port strike that has just ended, which may be reflected in the upcoming September and October reports.

🌍 Global Hot Topic: Global supply chains are under pressure again. Will inflation start rising? (Click To Read Article)

Global supply chains are facing increased pressure from multiple sources, including the ongoing conflict in the Middle East, droughts impacting routes like the Panama Canal, and recent strikes by dockworkers on the U.S. East Coast. These challenges have led to increased costs and longer lead times for shipping goods. Routes like the Red Sea are being bypassed in favor of longer, more expensive alternatives like the Cape of Good Hope, resulting in significant hikes in container prices and delays in delivery times for manufacturers and retailers. Furthermore, factors such as rising oil prices, the U.S.-China trade standoff, and regional political conflicts contribute to heightened transportation costs and supply chain instability, potentially causing inflation to rise again as businesses pass costs onto consumers. The volatility in global supply chains underscores the need for businesses to diversify their sourcing strategies to minimize risks. The growing volatility in global supply chains underscores the need for diversification and adaptability to maintain continuity and remain competitive in uncertain times.

🇺🇸 US Hot Topic: US port workers and operators reach deal to end East Coast strike immediately (Click To Read Article)

We have been covering the pending strike since our September 6th release, unfortunately the strike became a reality, but now, the U.S. dock workers and port operators reached a tentative deal to end a three-day strike that halted shipping operations across East Coast and Gulf Coast ports. The deal includes a proposed 62% wage hike over six years, raising average wages from $39 per hour to around $63 per hour. The strike, which involved 45,000 workers and affected 36 major ports from Maine to Texas, caused significant disruptions to supply chains, threatening shortages and delays for a range of goods. The deal prevents further immediate supply chain disruptions but still leaves certain issues, such as automation, unresolved. Ports have resumed operations, and both parties plan to continue negotiations before the master contract expires on January 15, 2025.

Why It Matters:
This strike threatened to significantly affect U.S. supply chains which would have caused delays, shortages, and increased costs. For businesses dependent on these ports for imports and exports, this situation underscores the necessity of supply chain resilience and adaptability. Ena Source's expertise in diversifying supply chains—particularly through reliable North American manufacturers—can help companies navigate disruptions, mitigate risks, and maintain product availability, ensuring business continuity.

📈 Giorge’s Weekly Stock/ETF Pick

$IDGT- This is an ETF that focuses on U.S. companies involved in digital infrastructure, including data centers, telecommunication towers, and related equipment. It aims to capture long-term growth opportunities by investing in businesses that play a key role in digitalization and AI advancements. The ETF pays a quarterly dividend and has produced a YTD yield of 20.19%!

• 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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