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Shipping’s Emissions Squeeze; Self-Driving Hurdles; Energy’s Soy Scramble

By Paul Page

 

PHOTO: JOE RAEDLE/GETTY IMAGES

The world’s shipping regulator is facing growing pressure on multiple fronts to take tough action to reduce maritime carbon emissions. The head of the International Maritime Organization expects a key panel to adopt a blueprint for reining back pollution, but the WSJ Logistics Report’s Costas Paris writes the plan on the table at a meeting starting this week doesn’t include specific carbon emissions-reduction targets. The IMO’s environmental panel instead is taking up provisions to measure energy efficiency and what the group calls carbon intensity, with plans for incentives for cleaner operations. IMO chief Kitack Lim says everybody in the shipping world “is supporting the effort.” But Europe and the U.S. want tougher actions, and legal challenges to polluting sectors are gaining some momentum. That may raise the pressure on the IMO, and on a process that critics say amounts to self-regulation for the shipping sector.

 
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Transportation

PHOTO: AURORA

The era of fully self-driving vehicles may be further off than many in the automotive sector want to admit. While executives from Tesla’s Elon Musk to others in the automation arena trumpet technology that puts autonomy just around the corner, the WSJ’s Christopher Mims writes there’s growing skepticism that individuals will ever be able to buy cars that drive themselves off the lot. Experts say a big move toward full autonomous driving will only come after major breakthroughs in artificial intelligence that many believe aren’t on the horizon. More analysts say trucking may provide the best near-term potential for self-driving technology because the vehicles can operate on predictable routes. Chris Urmson, the head of autonomous trucking startup Aurora, says the startup’s tractor-trailers will only operate on highways where the company has a high-resolution, three-dimensional map. But he says it “will take time” for robot vehicles to become more commonplace.

 
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Quotable

“The entire IMO plan is complicated, and it’s doubtful whether the targets can be achieved.”

— A South American delegate to the International Maritime Organization, on the regulator’s emissions-reduction plan
 

Commodities

A soybean processing facility for biodiesel in Greenwood, Miss. PHOTO: RORY DOYLE/BLOOMBERG NEWS

The latest big fuel source is growing on farms. Prices for soybean oil have shot up to an all-time high last week, the WSJ’s Kirk Maltais reports, powered by growing demand from the biofuels sector and the search for a renewable alternative to conventional diesel. U.S. forecasters expect biofuels consumption of soybean oil to grow by nearly a third this year to 12 billion pounds, and production capacity is growing as companies including Archer Daniels Midland and Cargill invest in the business. The moves are part of the broader upheaval in energy markets as companies responding to climate change seek power sources beyond traditional fossil fuels. That’s triggering new sorts of business deals like energy company Phillips 66’s recent stake in an Iowa-based soybean-processing plant. Feedstocks such as animal fats make better renewable fuel, but limitations in that market are boosting interest in vegetable oils.

 
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Number of the Day

5.95 million

Intermodal loads carried by U.S. railroads in the first five months of 2021, 19.2% more than the year before and the most the Association of American Railroads has counted in the January-May period.

 

In Other News

The Group of Seven leading global economies agreed to back new rules for taxing businesses that operate internationally. (WSJ)

U.S. employers added 559,000 jobs in May, with hiring in leisure and hospitality far outpacing goods-producing jobs gains. (WSJ)

Trucking payrolls fell by 1,900 jobs last month but are up by about 50,600 from a year ago. (Dow Jones Newswires)

Distribution of fake Covid vaccines appears to be growing in Africa. (WSJ)

The U.K. construction sector is expanding at a “phenomenal” pace but faces supply shortages that could constrain growth. (Financial Times)

Japanese construction companies are struggling to find lumber as a shortage spreads around the world. (Japan Times)

South Korean e-commerce company Coupang is starting trial operations in Japan. (Nikkei Asia)

Regional governments are concerned that the container ship that burned and sank off Sri Lanka was carrying hazardous chemicals (Economic Times)

CMA CGM’s first-quarter net profit jumped to $2.1 billion from $48 million a year ago on a 10.7% gain in container shipping volumes. (Reuters)

Growing number of Greek-owned tankers are being tracked carrying sanctioned crude cargoes from Venezuela. (Lloyd’s List)

Mediterranean Shipping Co. CEO Soren Toft supports a global carbon tax for shipping and a worldwide fund for decarbonization research. (Ship & Bunker)

China’s Cosco Shipping Ports is in talks to acquire a stake in the Tollerort container terminal at Germany’s Port of Hamburg. (Journal of Commerce)

Qatar Airways’ potential purchase of about 30 all-cargo jets may spur a launch of a Boeing 777 freighter. (Air Cargo News)

More than half of businesses in a survey are concerned about delays in supplier deliveries and nearly a third are worried about increased risks at their suppliers. (Modern Materials Handling)

Dollar Tree projects rising logistics costs from delays in ocean imports and troubled outbound truck movements. (Supply Chain Dive)

German truck-trailer maker Schmitz Cargobull is opening a factory in Manchester to supply the U.K. and Ireland. (Motor Transport)

Auto maker Renault and fuel-cell business Plug Power plan to launch three hydrogen-powered cargo vans in Europe this year. (Bloomberg)

Supply-chain optimization startup Locus raised $50 million in a Series C funding round supporting its business focused on artificial intelligence. (VC Circle)

Industrial parts distributor Winsupply made its eighth acquisition since the start of 2020. (Industrial Distribution)

Chicago-based freight broker Redwood Logistics bought Skipjack Supply Chain and Proactive Global Logistics to expand e-commerce capability. (DC Velocity)

 

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, @CostasParis. Follow the WSJ Logistics Report on Twitter at @WSJLogistics.

 
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