Trouble viewing this email?  View in web browser ›

The Wall Street Journal. The Wall Street Journal.
LogisticsLogistics

Drilling for Energy Relief; Suppliers Out of Season; Amazon Faces Probe

By Paul Page

 

A gas station in Berkeley, Calif., this week. PHOTO: DAVID PAUL MORRIS/BLOOMBERG NEWS

American shale drillers aren’t coming to the rescue of beleaguered energy markets anytime soon. Leaders of fracking companies say there are limits to how much and how quickly they can boost oil supplies following Russia’s invasion of Ukraine. The WSJ’s Collin Eaton writes that the drillers face supply-chain constraints, including shortages of equipment, labor and the sand used in fracking. Executives also caution that investors remain wary of overspending after shale drillers prioritized expansion over profits in the past decade. That suggests no imminent relief for the transportation sector after diesel prices skyrocketed nearly 75 cents a gallon over the past week. Still, oil prices have pulled back from recent breathtaking highs, and there are signs the drilling sector is stirring. Freight carloads on U.S. railroads in the category that includes fracking sand rose 36.3% in February from the year before, according to the Association of American Railroads.

Here are other developments following Russia’s invasion of Ukraine:

A Russian airstrike hit a maternity hospital in the Ukrainian city of Mariupol as invading forces pressed efforts to encircle Ukraine’s capital city of Kyiv. (WSJ)

U.S. forecasters slashed projections for global grain shipments in the wake of disruptions from the Russia-Ukraine war (WSJ)

Airfreight rates are rising sharply as airspace restrictions constrain capacity. (The Loadstar)

Amazon suspended shipments of retail products and access to Prime Video to customers in Russia. (WSJ)

Deere & Co. suspended shipments of its farm and construction equipment to Russia and Belarus. (WSJ)

Iconic Russian car maker Lada suspended production because of the lack of parts and suppliers. (WSJ)

For the latest updates from Russia and Ukraine, click here.

 
Advertisement
LEAVE THIS BOX EMPTY
 

Supply-Chain Strategies

One expert estimates retailers will see average delays of one to two months on shipments this spring. PHOTO: FREDERIC J. BROWN/AGENCE FRANCE-PRESSE

Supply-chain congestion is wreaking havoc on seasonal shipping patterns. Retailers across the U.S. say they are still coming up short on inventories for key products, the WSJ’s Suzanne Kapner reports, including spring lines of shorts, sandals and other time-sensitive warm-weather gear. The dilemma extends a major headache for retailers during the past two years of supply-chain disruptions. Shipping backups have delayed delivery of targeted seasonal merchandise, from summer attire to Christmas decorations. That batters the value of the goods and fractures traditional patterns of ordering, shipping and selling behind supply chains. Many chains are placing orders with overseas factories earlier, and paying hefty sums to fly the goods to the U.S. But that isn’t necessarily solving the problem, and it ties up capital in inventory. And some shippers say domestic trucking has overtaken ocean transport as their biggest distribution headache this year.

 
Share this email with a friend.
Forward ›
Forwarded this email by a friend?
Sign Up Here ›
 

Quotable

“We ordered so far in advance and spent all this money on airfreight and stuff is still late.”

— Chris Riccobono, founder of apparel merchant Untuckit
 

E-Commerce

An Illinois fulfillment center operated by Amazon. PHOTO: SEBASTIAN HIDALGO FOR THE WALL STREET JOURNAL

Amazon is facing more heat in Washington. A congressional committee is asking the Justice Department to investigate the company and some of its executives for what lawmakers say is potentially criminal obstruction of Congress. The WSJ’s Dana Mattioli reports that Democrats and Republicans on the panel made the request this week in a letter to the U.S. attorney general. They say Amazon refused to provide information for an investigation of the company’s competitive practices, including its treatment of third-party sellers. Amazon denies the charge. The request escalates tensions between Amazon and lawmakers who issued a report criticizing the company and other tech giants, fueling legislative proposals aimed at curbing their power. The antitrust committee was looking at how Amazon uses the data of third-party sellers on its platform when creating private-label products, and how it treats those Amazon brands in its search results.

 
Advertisement
LEAVE THIS BOX EMPTY
 

Number of the Day

7.38

Average number of days container ships were delayed getting to port world-wide in January, down from 7.68 days in December and the sixth straight month the figure exceeded seven days, according to Sea-Intelligence

 

In Other News

Demand for workers in the U.S. remained close to a record high at the start of the year. (WSJ)

The metals industry, financial regulators and Chinese officials are scrambling to resolve a crisis in London’s nickel market. (WSJ)

The Biden administration restored California’s ability to set stricter air-pollution limits for auto makers. (WSJ)

Campbell Soup quarterly sales slipped 3% on labor and supply constraints.(WSJ)

Cathay Pacific Airways expects to fall back into the red as Hong Kong seeks to stem a growing Covid-19 wave. (WSJ)

China’s semiconductor imports fell in the first two months of the year for the first time in two years. (South China Morning Post)

Airfreight rates are rising sharply as airspace restrictions constrain capacity. (The Loadstar)

IATA says global air cargo growth slowed to 2.7% in January on an 11.4% year-over-year gain in capacity. (Air Cargo News)

Prices for marine very low sulfur fuel have surged 44% in less than two weeks. (Lloyd’s List)

DHL parent Deutsche Post’s fourth-quarter earnings rose 14% to about $1.61 billion on a 22% jump in revenue. (MarketWatch)

Knight-Swift Transportation CEO David Jackson says shipper demand is blurring lines between​ truckload and less-than-truckload services. (Journal of Commerce)

Startup Kodiak Robotics struck a commercial agreement to move freight on autonomous trucks for Ceva Logistics on routes in Texas and Oklahoma. (TechCrunch)

Trucking-industry workers account for 25% of the deaths from Covid-19 in Georgia during the pandemic. (WSB)

Walmart is building a 1.8 million-square-foot​ distribution center west of Harrisburg, Pa. (Associated Press)

A maritime mystery for more than a century was solved with the discovery of the wreck of Ernest Shackleton’s ship Endurance, which disappeared under Antarctic sea ice in 1915. (WSJ)

 

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, @pdberger. and @LydsOneal. Follow the WSJ Logistics Report on Twitter at @WSJLogistics.

 
Desktop, tablet and mobile. Desktop, tablet and mobile.
Access WSJ‌.com and our mobile apps. Subscribe
Apple app store icon. Google app store icon.
Unsubscribe   |    Newsletters & Alerts   |    Contact Us   |    Privacy Policy   |    Cookie Policy
Dow Jones & Company, Inc. 4300 U.S. Ro‌ute 1 No‌rth Monm‌outh Junc‌tion, N‌J 088‌52
You are currently subscribed as [email address suppressed]. For further assistance, please contact Customer Service at sup‌port@wsj.com or 1-80‌0-JOURNAL.
Copyright 2022 Dow Jones & Company, Inc.   |   All Rights Reserved.
Unsubscribe