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Disrupting Digital Freight; Measuring Corporate Risk; India’s Dose Shortfall

By Paul Page

 

PHOTO: DANIEL ACKER for THE WALL STREET JOURNAL

The digital freight disrupters won’t be disrupted. Privately held startups Convoy and Transfix tell the WSJ Logistics Report’s Jennifer Smith that Uber Freight’s decision to switch gears with a big acquisition doesn’t add pressure on them to cut deals that push them toward profitable growth. The comments follow Uber Freight’s announced move to buy transportation management heavyweight Transplace, a $2.25 billion acquisition that brings the Uber Technologies unit broader logistics services built on long-term contracts. Tech startups with heavy venture-capital funding are under growing pressure to show profits and Transfix and Convoy have attracted big financial backing with promises that they’ll disrupt the traditional business of matching freight shipments to trucks. Right now, both see their best path to profits coming from organic growth. With Armstrong & Associates measuring the transportation management sector at $92.1 billion, the market may be plenty big enough for the different strategies.

 
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Supply ChaIn Strategies

For some companies, the most troublesome emissions calculation is measuring emissions produced by suppliers, including during transportation. PHOTO: STEVEN SENNE/ASSOCIATED PRESS

Businesses will soon face new demands for detailed information across their supply chains about emissions and the potential impact of climate disruptions. Investors are already increasing pressure for environmental disclosures, and U.S. securities regulators are preparing to join in with potential climate-disclosure rules. The WSJ’s Jean Eaglesham and Shane Shifflett report that requirements could include assessments of emissions produced by companies' suppliers and customers, suggesting companies will need to dig deeper than ever into their supply chains and that measures that now vary from business to business will likely have to be standardized. Regulators also want better disclosure of climate-related risks for public companies, such as the effects from extreme weather. The efforts will raise new challenges for carbon-intensive transportation operators that may have to provide more detailed information both to regulators and to customers who may have to report on the emissions produced by their suppliers’ transportation.

 
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Quotable

“We’re seeing 10- to 12-week delivery times for laptops and computing devices. Those used to take a day or two.”

— Sue Workman, chief information officer at Case Western Reserve University, on the impact of semiconductor shortages.
 

Economy & Trade

A vaccination center at a hospital in Bangalore this week. PHOTO: JAGADEESH NV/EPA/SHUTTERSTOCK

India is looking for help with its vaccine supply chain. New Delhi is in negotiations with Western vaccine makers in an effort to secure tens of millions of doses in the next few months, the WSJ’s Rajesh Roy reports, as the country tries to ease supply shortages that have been stymying its massive immunization campaign. India has been relying on domestic manufacturers to satisfy demand for Covid-19 vaccines, but problems that include the shortages of raw materials have slowed production even as demand ramped up during a deadly outbreak earlier this year. The new talks with Moderna, Johnson & Johnson and partners Pfizer and BioNTech come as the direction of global manufacturing and distribution of the vaccines begins to shift to meet increasingly urgent demand. India halted vaccine exports to help ease domestic supply shortages as Covid-19 cases rose rapidly in the spring.

 
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Number of the Day

136.9

The U.S. Bureau of Transportation Statistics Freight Transportation Services Index for June, down 0.4% from May and behind the record 141.9 measure for U.S. freight activity set in August 2019.

 

In Other News

Month-to-month growth in U.S. consumer prices slowed in July. (WSJ)

Electric-truck startup Lordstown Motors says it is on track to start limited production in late September and is in talks with multiple potential partners. (WSJ)

The White House is urging OPEC to boost oil production to meet demand from countries seeking to emerge from the pandemic. (WSJ)

Southwest Airlines says the recent surge in Covid-19 cases is causing passenger bookings to slow and cancellations to rise. (WSJ)

A Nissan plant in Smyrna, Tenn., is suspending operations because a Covid-19 outbreak at a Malaysian supplier is disrupting parts deliveries. (WZTV)

Experts say the lengthy delays at ports around the world highlight the need to improve infrastructure at many gateways. (Financials Times)

Maersk Line is suspending service to the Port of Hamburg to improve schedule reliability. (Lloyd’s List)

Amazon opened its $1.5 billion air cargo hub at the Cincinnati/Northern Kentucky International Airport. (CNBC)

Home Depot is opening a 1.5 million-square-foot distribution center in the Sparrow’s Point area of Baltimore. (Business Journals)

British retailer John Lewis is adding 1 million square feet of warehouse space in the British town of Milton Keynes to handle growing online demand. (SHD Logistics)

Trucker U.S. Xpress expects a tight truckload market to lead to higher contract rates in the coming months. (Transport Dive)

Singapore-based e-commerce shipping technology platform Parcel Perform raised $20 million in a Series A financing round led by Cambridge Capital. (TechCrunch)

Cargo revenue at Etihad Airways increased 60% in the first half of the year to $800 million. (Air Cargo World)

 

About Us

Paul Page is editor of WSJ Logistics Report. Write to him at paul.page@wsj.com.

Follow the WSJ Logistics Report team: @PaulPage, @jensmithWSJ and @pdberger. Follow the WSJ Logistics Report on Twitter at @WSJLogistics.

 
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