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LogisticsLogistics

Deadlock on the Docks; Picking Up Robots; Labor Peace on Track

By Paul Page

 

The Port of Oakland last week. PHOTO: JUSTIN SULLIVAN/GETTY IMAGES

Unionized dockworkers and employers at West Coast ports seemed near an agreement late last month when the final issue on the table turned into a roadblock. U.S. importers now are facing delays at key Pacific gateways as job actions flare up at ports from Seattle to Southern California and the two sides wrangle over wages in a negotiation carrying high stakes for the American economy. The WSJ Logistics Report’s Paul Berger writes the job actions so far have been targeted and relatively limited, particularly compared to the last contract negotiating cycle that began in 2014 and triggered big backups costing retailers millions of dollars in lost sales. The two sides are trading proposals on pay but remain far apart after the longshore union initially sought to double worker wages over six years. The U.S. Chamber of Commerce now is asking the Biden administration to appoint an independent mediator.

  • Port of Seattle employers say cargo handling was shut down at the port Friday and Saturday. (Maritime Executive)
  • Canada’s longshore union plans to hold a vote to authorize a strike at British Columbia ports amid ongoing contract negotiations. (Vancouver Sun)
 
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Logistics Technology

Boston Dynamics has been developing a humanoid robot called Atlas. PHOTO: BOSTON DYNAMICS

The latest research on warehouse automation is focused on bringing a human touch to robotics. Companies including Agility Robotics, Figure AI and Boston Dynamics are designing robots that more closely resemble human beings that they believe could take on some of the tasks now done only by flesh-and-blood people. The WSJ Logistics Report’s Liz Young writes the humanoid robots are aimed at taking automation beyond the disembodied arms and rolling trays that have embodied robotics in distribution centers. Jonathan Hurst of Agility Robotics says the human-shaped machines are meant for warehouse operators that aren’t looking to create sites tailored only to robots. The new generation of robots raises big labor questions. Developers say their logistics customers aren’t replacing jobs but are looking to fill roles in areas where operators can’t find workers. Developers also face big technology challenges, but they insist the solutions are within the robots’ grasp.

 

Number of the Day

$12,560

The Baltic Exchange’s estimate of average spot-rate prices for bulk shipping’s largest capesize vessels on June 9, up 36% from the week before on stronger iron ore demand.

 
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Transportation

A meeting of the Union Pacific Brotherhood of Locomotive Engineers and Trainmen union last week. PHOTO: JORDAN VONDERHAAR FOR THE WALL STREET JOURNAL

Labor relations for the major U.S. freight railroads are on a new track. The railroads have struck a series of agreements with a range of unions over issues such as paid sick leave and predictable shifts, in a contrast with the tumultuous contract negotiations that raised fears of walkouts and prompted federal intervention. The WSJ’s Esther Fung reports the labor-friendly deals are aimed at boosting morale among existing workers and making jobs more attractive to those outside the industry. The changing labor landscape has come through a series of targeted agreements each of the carriers have reached with unions representing employees such as track workers and machinists. The broad labor pact late last year didn’t quell discontent among rank-and-file employees at several railroads, and the carriers also fielded complaints from customers and federal officials to improve rail service. Officials have associated those service problems with worker shortages.

 
 

Supply Chain Strategies

A Macy’s in Corte Madera, Calif., in 2020. PHOTO: JUSTIN SULLIVAN/GETTY IMAGES

Breaking up is hard to do, particularly when there’s so much inventory at stake. Sports apparel heavyweight Nike is going back to some of the retail partners it has stepped back from as it looks for help in clearing out its stacked-up inventories. The WSJ’s Inti Pacheco reports Nike’s moves toward merchants such as DSW parent Designer Brands and Macy’s follow years of efforts to sell more of its products directly to consumers, aiming to keep a larger slice of sales than what could be earned from bulk sales to retailers. Now supplier-buyer relationships are changing in a shifting market dynamic that left companies swamped with inventory. Nike last year started cutting orders with factories and put discounts on a wider assortment of merchandise, squeezing profit margins. Nike’s renewed embrace of the wholesale channel marks a gain for merchants like Foot Locker that depend on big-brand suppliers.

 
 

Quotable

“Nike thought they could do a lot of it themselves but they aren’t as capable as they thought they were.”

— Sam Poser, an equities analyst at Williams Trading
 
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In Other News

China’s producer prices fell 4.6% in May from a year earlier, the weakest reading since early 2016. (WSJ)

An elevated section of Interstate 95 collapsed in Philadelphia after a tanker truck caught fire on the exit ramp beneath it, closing off a portion of the major northeast thoroughfare. (WSJ)

Glencore approached Canadian miner Teck Resources over buying its coal assets. (WSJ)

Canadian authorities seized an Antonov AN-124 freighter grounded in Toronto since February 2022 and will give it to Ukraine. (WSJ)

China-owned auto parts supplier ARC Automotive was cited for numerous worker-safety violations before resisting a recall of potentially dangerous air-bag inflators. (WSJ)

Japanese car makers are speeding up delivery times as parts shortages ease. (Nikkei Asia)

Swedish automotive parts supplier Autoliv is closing several sites in Europe and cutting about 8,000 jobs. (Reuters)

The U.S. may start unloading oil from a seized Iranian tanker anchored off the coast of Texas. (Financial Times)

U.S. regulators fined Maersk Line subsidiary Hamburg Süd $9.8 million for contract breaches involving furniture importer OJ Commerce. (Splash 247)

Italian special forces stormed a car carrier in the Mediterranean after stowaways tried to hijack the vessel. (The Guardian)

A Biden administration scorecard says supply chains have grown “significantly more fluid and resilient.” (CNN)

United Parcel Service and the Teamsters reached a tentative deal to increase the share of packages in the company’s SurePost service delivered by company drivers. (Supply Chain Dive)

The U.K. will resume a levy on heavy-duty trucks that it had suspended during the pandemic. (Motor Transport)

GXO Logistics is placing a 387,000-square-foot warehouse in Germany as part of a significant expansion in the country. (Logistics Manager)

China is launching a five-day International Supply Chain Expo in November. (South China Morning Post)

 

About Us

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

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

 
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