Trouble viewing this email?  View in web browser ›

The Wall Street Journal. The Wall Street Journal.
LogisticsLogistics

Rising Port Labor Tensions; Soybeans Crushed; Shifting Ukraine Exports

By Paul Page

 

The Port of Los Angeles last month. PHOTO: MARIO TAMA/GETTY IMAGES

The contract standoff at U.S. West Coast ports appears to be entering a new and more contentious phase. Port employers are accusing unionized dockworkers of slowing container handling at the ports of Los Angeles and Long Beach. The WSJ Logistics Report’s Paul Berger writes the new barbs suggest that tensions in the long-running negotiations are getting worse and points to the potential for deeper disruptions at the nation’s busiest gateway for imported consumer goods. The details are that the employer group says dockworkers last week stopped staggering their meal breaks at the ports, creating one-hour mealtime gaps that have led to delays in box movements. The union says its workers have the right to take meals together. But the bigger issue is that cargo volumes at the ports are in steep decline. A showdown that ties up the flow of goods is likely to push more business to other gateways.

 
Advertisement
LEAVE THIS BOX EMPTY
 

Commodities

A corn and soybean farm in Woodburn, Ind. PHOTO: BING GUAN/REUTERS

A nascent boom in the market for soybean oil is facing unexpected headwinds from the Environmental Protection Agency. The commodity is tied up in the meeting point between agriculture and fuel, leaving it subject to shifts in energy markets. The WSJ’s Bob Henderson reports soybean oil futures tumbled after the EPA last December proposed to mandate less use of biomass-based diesel through 2025 than expected. The price of soybean oil has roughly doubled over the past three years, largely because of demand to make fuel for trucks and trains. Visions of soybean-powered truck fleets prompted a kind of green-oil boom in the Midwest, with bean-crushing plants in place of derricks and drills. But companies have little economic motive to make diesel from soybean oil without government incentives, which are aimed at reducing carbon emissions, so the EPA news has put some projects on pause.

  • European diesel supplies are tightening after two weeks of labor actions at French refineries. (Reuters)
 
 
Share this email with a friend.
Forward ›
Forwarded this email by a friend?
Sign Up Here ›
 

Quotable

“In a race to the bottom, we seriously question how the competition can keep up.”

— Morgan Stanley analyst Adam Jonas, on Tesla’s cost cuts.
 

Commodities

The bulk carrier Valsamitis is loaded with wheat at the Black Sea port of Chornomorsk last month. PHOTO: IGOR TKACHENKO EPA-EFE/SHUTTERSTOCK

Ukraine’s grain harvest is thinning out as Russia’s invasion of the country takes a toll on production and disrupts exports. Kyiv expects farmers to harvest up to 15% less grain this year than last, the WSJ’s Alistair MacDonald reports, a stark sign of how the war continues to disrupt critical food supplies even as a fragile shipping agreement keeps bulk trade moving through Black Sea ports. The transport hurdles are helping reshape the country’s agricultural supply chains. Officials say some farmers have switched to crops that are easier to transport abroad, like sunflower seeds and soybeans. Those crops produce lower yields than wheat, leaving less tonnage for export. To avoid relying on Black Sea ports, Ukraine is exporting more of its goods by land, which is more expensive and time consuming. The production pullback this year follows a steep reduction in the grain harvest a year ago.

 
Advertisement
LEAVE THIS BOX EMPTY
 

Number of the Day

-0.26

The Federal Reserve Bank of New York’s Global Supply Chain Pressure Index for February, down from 0.94 in January to bring the measure below the historical average for the first time since August 2018.

 

In Other News

The U.S. index of leading economic indicators fell in February for the 11th straight month. (MarketWatch)

A United Nations panel of scientists said there is a “feasible, but narrow pathway” to avoid the worst effects of climate change. (WSJ)

Amazon is cutting 9,000 more corporate jobs across units that include its cloud-computing and advertising businesses. (WSJ)

Stanley Black & Decker is closing factories in Texas and South Carolina, relocating some operations to Tennessee facilities. (WSJ)

Foot Locker says it is rebuilding its relationship with apparel supplier Nike. (WSJ)

Foot Locker is closing 400 of its U.S. mall-based stores by 2026. (Retail Dive)

Big commodity traders expect limited fallout in their markets from banking sector turmoil. (Financial Times)

India plans to develop seven large textile manufacturing parks aimed at boosting the country’s exports to $100 billion by 2030. (Business Standard)

BJ’s Wholesale says its use of store employees to help fulfill same-day delivery orders has made the operation more efficient. (Supply Chain Dive)

FedEx is retiring its MD-11 aircraft and replacing them with 767 and 777 freighters. (The Loadstar)

Athens-based tanker and bulk ship manager Heidmar is going public through a merger with a special purpose acquisition company. (TradeWinds)

Prices for new ships at shipyards have increased 2% so far this year. (Splash247)

Pittsburgh-based trucker R&R Express is buying Denver-based Load to Ride. (Transport Dive)

U.S. customs seized six African large snails in passenger baggage at the Detroit Metropolitan Airport. (NPR)

 

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.

 
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 2023 Dow Jones & Company, Inc.   |   All Rights Reserved.
Unsubscribe