|
|
|
|
|
Bracing for China’s Surge; Building E-Commerce Logistics; Russia Resets
|
|
|
|
|
|
|
|
The Cosco Shipping Libra container ship at the Port of Rotterdam in March, PHOTO: PETER BOER/BLOOMBERG NEWS
|
|
|
|
Western ports and logistics operators are bracing for the impact of China’s Covid-19 lockdowns on their operations this summer. Officials say they expect a wave of container ships to reach the docks once China lifts the stringent restrictions that have hobbled factory production and built a backup of vessels off the country’s coast. The WSJ’s Costas Paris writes that Chinese ports have remained open during the lockdowns, but the shutdown of factories and logistics limitations has left a big backlog of goods in distribution pipelines. A reopening could trigger a cargo surge as importers start to bring in goods for the peak holiday shopping season and as U.S. West Coast longshore labor
talks heat up. That would be a blow for ports that are finally seeing relief from Covid-related congestion. Backups at the busiest ports in Southern California recently fell to their lowest levels since August 2021.
|
|
|
|
|
|
|
|
Shopify’s headquarters in Ontario, Canada. PHOTO: COLE BURSTON/BLOOMBERG NEWS
|
|
|
|
E-commerce competition is shaping up more than ever as a battle over logistics. Online sales platform Shopify is bulking up its fulfillment capabilities with a $2.1 billion acquisition of tech startup Deliverr, the WSJ’s Adriano Marchese reports, as the company tries to bolster its services for online retailers looking to compete with Amazon. The cash-and-stock deal adds to Shopify’s efforts to build what it says is “an end-to-end logistics platform that manages inventory from port to porch and across all sales channels.” The efforts that include the 2019 buy of 6 River Systems focus on technology. The Deliverr business gives Shopify more tools to help online
retailers manage the distribution of goods efficiently even as Amazon moves more towards fulfillment through its own operated network. Shopify’s bigger challenge may be that it is investing in logistics just as the pandemic-driven surge in e-commerce demand looks to be waning.
-
DoorDash’s quarterly revenue rose 35% to $1.46 billion, in a slowdown from the same quarter in the previous two years. (WSJ)
-
Online furniture seller Wayfair’s quarterly sales fell 14% and its active customer count declined for the fourth straight quarter. (WSJ)
|
|
|
|
|
|
|
Russia’s gas links to Asia have become increasingly important for the Kremlin. PHOTO: ANDREY RUDAKOV/BLOOMBERG NEWS
|
|
|
|
Russia’s efforts to redraw its export map faces big hurdles in logistics infrastructure. With its shipping sector facing growing sanctions on vessel operations, insurance and financing, Moscow will need new pipelines and expanded railroad links to get its oil, natural gas and coal to new customers. The WSJ’s Georgi Kantchev reports the new infrastructure will take years to build, and major trading houses are also cutting their ties to Russia, adding to the complications. Whether Russia succeeds in rerouting its commodities flows carries high stakes for the Kremlin and for the global economy. Russia has grown in recent decades into a leading exporter of a range of commodities. Russia has a willing customer in
India, which has dramatically stepped up its imports of crude cargoes. But India is buying the oil on the cheap, and vessels carrying the crude are starting to get locked out of insurance markets.
|
|
|
|
|
|
|
Volkswagen cars at the New York International Auto Show. PHOTO: AMIR HAMJA FOR THE WALL STREET JOURNAL
|
|
|
|
Volkswagen wants to charge up its electric-vehicle supply chain with new investment in U.S. production. The auto maker is considering doubling the capacity of a Chattanooga, Tenn., plant that will produce electric hatchbacks, the WSJ’s William Boston reports, potentially adding to growing footprint for production of new automotive technology across the country. VW’s Herbert Diess says the company’s plans extend “beyond Chattanooga” and is considering adding capacity in the U.S. and Mexico, but “most likely in the United States.” The new investment is aimed at helping VW expand its relatively small U.S. market share and compete with rivals with large U.S. factory footprints, like Honda and Toyota. It would
also help bulk up an ecosystem of suppliers of batteries and other components as manufacturers ramp up assembly lines to meet sales and production targets.
-
Canadian officials say they are in talks with several companies about establishing electric-vehicle battery production in the country. (Reuters)
-
Electric truck maker Nikola posted a gross profit of $431,000 for the first quarter. (Barron’s)
|
|
|
|
In a special report, WSJ Pro Private Equity digs into how companies are managing the increasingly complex regulations and disclosures dictating how they measure and monitor social and environmental issues. The issue is free and downloadable.
|
|
|
|
|
8%
|
Year-over-year decline in global air cargo volume in April, according to CLIVE Data Services, as average airfreight rates rose 145% from the April 2019 level.
|
|
|
|
|
New applications for unemployment benefits in the U.S. ticked up for the first time since early April. (WSJ)
Productivity of American workers and businesses sank in the first quarter at the fastest rate since in 1947. (MarketWatch)
The pound fell at the steepest pace in over 14 months after the Bank of England raised its key interest rate again. (WSJ)
The level of carbon dioxide in the atmosphere hit a record high in April. (WSJ)
Boeing plans to move its headquarters from Chicago to Arlington, Va., outside Washington, D.C. (WSJ)
Federal aviation regulators are working with airlines to ease mounting air-traffic problems in Florida. (WSJ)
Peloton Interactive is exploring a sale of a sizable minority stake as it seeks to shore up its business. (WSJ)
Taiwanese container line Wan Hai Lines will play $850,000 to settle charges it wrongly charged a customer for holding a container too long. (Journal of Commerce)
South Korean shipyard workers are protesting efforts to bring in foreign workers to cope with labor shortages. (Maritime Executive)
Danish tanker and dry-bulk ship operator Norden swung to a $117 million profit in the first quarter. (ShippingWatch)
Atlas Air projects expects adjusted profits to rise 60% from the first half to the second half of the year. (Dow Jones Newswires)
XPO Logistics tanker drivers in the U.K. called off a threatened strike after getting a 27% pay increase. (Motor Transport)
First-quarter profit at GXO Logistics rose 45% to $38 million as revenue increased 14% to $2.1 billion. (Logistics Management)
The Agriculture Department says high diesel prices are weighing on U.S. grain shipments. (Dow Jones Newswires)
|
|
|
|
|
|