General Motors Parts Agreement Addresses Supply Chain Challenges

General Motors (GM) agreed to a financing arrangement with Procura Auto Parts LLC, a supply-chain management firm, to secure critical parts for continuous production amid supply chain disruptions.

Under the arrangement, Procura will prepay suppliers and store inventory on behalf of GM. Once the inventory is consumed in production, GM will repay Procura with irrevocable payment undertakings backed by a bank syndicate.


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Panama Canal Restricts Daily Transits

The Panama Canal is backing away from its pledge not to restrict the number of ships traveling through it.

Restrictions started September 4, 2026, with the number of vessels capped at 34, and will be further reduced to 32 on September 15th. In spring 2026, the Canal was averaging 35 vessels per day, with a capacity of 40.

A drought reduced rainfall to 34% below the historical average and watershed inflows to 44% below normal. […]

Multiple Factors Create Auto Industry Aluminum Shortage

A shortage of aluminum is impacting the entire auto industry. Especially impacted are trucks, where aluminum is the key material used in making truck bodies.

The aluminum shortage is attributed to the Iran war, a 50% US tariff, and supplier production outage. Ford, being the auto industry’s biggest aluminum buyer, has the largest exposure in the aluminum shortage, limiting the company’s ability to replenish inventories for downstream retail dealers.


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Strait of Hormuz Connects Global Supply Chains

The Strait of Hormuz has seen 90 to 95% of oil tanker and cargo ship traffic grind to a halt since Operation Epic Fury began.

An estimated 20% of the world’s crude oil supply normally passes through the strait. Shipping companies are unwilling to move vessels through the strait while Iran threatens to attack them and set vessels on fire, and insurance companies will not protect the vessels if they do attempt the journey.

Global supply chain disruptions in the near-term as […]

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