Weekly Supply Chain Pulse - 9

📰 Supply Chain Pulse | Weekly Edition – October 11, 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 2.72%. Yet another week of decline here, we anticipate this to continue over the next few months.

DAT Truckload Freight Rate Index

This week, the DAT reports the national average Van Spot Rate at $2.02 per mile—which is holding steady from last week. We may see a bit of an up tick in the coming weeks as the holiday season quickly approaches us and demand for transportation rises.

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. Over the past week, the index decreased by approximately 0.99 points (0.35%), breaking a four-week growth streak.

Global Supply Chain Pressure Index (GSCPI)

The GEP Global Supply Chain Volatility Index tracks global supply chain conditions by measuring factors such as demand, shortages, transportation costs, inventories, and backlogs. A positive value indicates stretched capacity and higher volatility, while a negative value shows underutilization and reduced volatility. In September, the index dropped to -0.43, marking the fourth consecutive monthly decrease. This decline is attributed to decreasing transportation cost and improvements in staffing issues. Monitoring this index helps businesses anticipate potential disruptions and make informed decisions to maintain operational efficiency and minimize risks.

🌍 Global Hot Topic: Geopolitical Conflict Could Cost Global Economy $14.5 Trillion Over 5 Years: Lloyd’s (Click To Read Article)

A recent report by Lloyd’s highlights the potential global economic losses that could result from a hypothetical geopolitical conflict, projecting a staggering $14.5 trillion in economic damages over a five-year period. With over 80% of the world’s goods transported by sea, the closure of critical trade routes due to geopolitical unrest poses a severe threat to global supply chains. The sectors most at risk include manufacturing, semiconductors, healthcare, and transportation, which rely heavily on global trade and the steady movement of goods. Lloyd’s report also stresses the need for businesses to safeguard their operations through measures like diversifying suppliers, strategic contingency planning, and leveraging insurance options such as political risk and contingent business interruption coverage.

Why It Matters:
Geopolitical risks can cause massive disruptions to global supply chains, leading to shortages, increased costs, and delayed deliveries. For businesses, being unprepared for such conflicts can severely impact operations and profitability. Ena Source can help companies proactively manage these risks by securing diverse and reliable supplier networks, especially within North America, and developing robust contingency plans. This ensures continuity and minimizes the impact of global disruptions on your supply chain operations.

🇺🇸 US Hot Topic: Savills “cautiously optimistic” on future of U.S. manufacturing boom (Click To Read Article)

The U.S. manufacturing sector has added nearly 1 million new jobs over the past four years, driven by federal incentives and mega-trends such as nearshoring and clean energy development, according to Savills' September Manufacturing Report. The sector’s expansion remains robust, particularly in advanced industries like electric vehicles, semiconductors, and biomanufacturing, fueled by $910 billion in federal incentives from policies like the Inflation Reduction Act and CHIPS Act. Although the pace of growth has slowed from its 2022 peak, the U.S. manufacturing outlook remains positive, with additional job creation anticipated in 2025 and beyond. Key regions for growth include states like Arizona, Texas, and North Carolina, which account for almost half of the new manufacturing jobs and square footage in development. Across the border, Mexico is also benefiting from nearshoring trends, particularly in traditional manufacturing sectors like automotive parts and consumer goods.

📈 Giorge’s Weekly Stock/ETF Pick

$IWM- This ETF tracks the Russell 2000 Index, which includes 2,000 small-cap U.S. companies across various industries, providing broad exposure to the small-cap sector of the American economy. This ETF is ideal for investors looking to diversify into smaller companies with higher growth potential, though it can be more volatile than large-cap indexes like the S&P 500.

• 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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