Trouble viewing this email?  View in web browser ›

The Wall Street Journal. The Wall Street Journal.
LogisticsLogistics

Cross-Border Concern; China Stocks Up; Shopping for Staff

By Paul Page

 

Trucks in Windsor, Ontario, line up to cross the Ambassador Bridge into Detroit, Mich.  
PHOTO: COLE BURSTON/BLOOMBERG NEWS

The Logistics Report newsletter won’t publish on Monday, Jan. 17, Martin Luther King Jr.’s Birthday. The next newsletter will be Tuesday, Jan. 18.

Today's newsletter was written by WSJ Logistics Report's Jennifer Smith.

New Covid-19 vaccination rules coming to the U.S.-Canada border have shippers and carriers sounding the alarm. Truckers and manufacturers warn the mandates could strain fragile supply lines and lead to further price increases and shortages, the WSJ’s Paul Vieira and Jennifer Smith report. The Canadian rules set to kick in Saturday will bar U.S. and other foreign truckers from entering Canada unless they are fully vaccinated. Unvaccinated Canadian drivers must show a negative Covid-19 test and quarantine for 14 days. The U.S. has said Canadian truck drivers without two shots of an authorized vaccine would be denied entry to the country starting Jan. 22. Trucking groups in both countries say all that will further reduce the pool of drivers for already short-staffed fleets. Meanwhile the Supreme Court on Thursday blocked the Biden administration’s Covid-19 vaccine-or-testing rules for large private employers, drawing sighs of relief from U.S. trucking companies.

 
Advertisement
LEAVE THIS BOX EMPTY
 

Economy & Trade

Soybeans being harvested in Heilongjiang province. PHOTO: SUNJIANXIN/SIPA ASIA/ZUMA PRESS

China is loading up on everything from grains to raw materials in a bid to reduce its dependence on the outside world. The inward pivot has accelerated as tensions with the U.S. and other trading partners rise, the WSJ’s Lingling Wei reports, and includes plans to boost domestic production of key staples such as soybeans. The push to self-sufficiency began with earlier efforts to wean China off its addiction to foreign technologies like American semiconductors and is a core feature of President Xi Jinping’s security-focused economic agenda. Food staples may be a harder ask for a nation that is almost entirely dependent on imports for the soybeans that feed China’s pig herds. The stockpiling is pushing up global prices for grains and other commodities, and some economists question whether China can build up reserves of oil, coal and other materials without having to buy more from Australia or the U.S.

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

Quotable

“It’s a relief. As much as I wish everyone would get vaccinated, this mandate was going to create a lot of headaches for a lot of companies.”

— Eric Fuller, chief executive of trucking carrier U.S. Xpress Enterprises Inc.
 

Supply Chain Strategies

Covid-19 cases surged among Stew Leonard’s supermarket-chain workers in the Northeast over the past month. PHOTO: ANGUS MORDANT/BLOOMBERG NEWS

The Omicron variant is weighing on grocery supply chains. Supermarkets are running short on staff as Covid-19 related absences mount, the WSJ’s Stephen Council and Jaewon Kang report, driving food retailers to lean on staffing agencies and in some cases reduce hours so workers can restock shelves. Piggly Wiggly stores in Alabama and Georgia used workers from temporary agencies to shore up warehouse staff and keep products flowing. Ohio-based supermarket chain Fresh Encounter cut back 24-hour operations and has been closing its deli counters early. It’s also selling fewer items that require hands-on labor, such as store-made chicken salad and some cuts of meat. Consumers in some areas are reverting to shopping patterns from earlier in the pandemic as infections rise. At Connecticut mini-chain LaBonne’s Market, demand for curbside pickup and delivery has jumped by about 50% in the weeks since Christmas.

 
Advertisement
LEAVE THIS BOX EMPTY
 

Number of the Day

2%

Decline in holiday inventory due to supply chain issues in the U.S. and globally compared to 2020, according to Salesforce.

 

In Other News

U.S. jobless claims rose to 230,000 as a tight labor market kept applications near pre-pandemic lows. (WSJ)

More than half of global CEOs expect price pressures to persist until at least mid-2023, a Conference Board survey found. (WSJ)

The Supreme Court blocked the Biden administration’s Covid-19 vaccine and testing mandate for large private employers. (WSJ) 

Delta Air Lines expects to spend an extra $60 million to $70 million on Covid-related costs in the first quarter. (WSJ).

Supply constraints are expected to weigh on personal-computer shipments until at least mid-2022. (WSJ)

More than 100 companies are expanding truck driver apprenticeship programs under a Biden administration plan to improve industry recruitment. (Dow Jones Newswires)

Congestion is growing at the ports of Shanghai and Xiamen as ships change course to avoid Covid-related delays at Ningbo-Zhoushan Port. (Bloomberg) 

Container dwell times are reaching record levels in Europe and the U.S. (Lloyd’s List)

The European Union blocked a merger between South Korean shipbuilder Hyundai Heavy Industries and rival Daewoo Shipbuilding & Marine Engineering. (Nikkei Asia)

Bunker sales in Singapore hit a four-year high in 2021. (Ship and Bunker)

Airlines are stepping up cargo applications to operate in the U.S. as airfreight prices rise. (The Loadstar)

Walmart is testing temperature-controlled “smart” delivery boxes in Florida. (Progressive Grocer)

Discount home furnishings chain Big Lots plans to open more than 500 new stores. (CNN)

United Parcel Service expects a 10% year-over-year increase in holiday-related returns. (Sourcing Journal)

Trailer orders fell 40% in December from the prior year on supply disruptions and labor shortages, ACT Research said. (Heavy Duty Trucking)

The seven largest freight railroads operating in the U.S. collected $1.18 billion in demurrage fees in the first three quarters of 2021. (Supply Chain Dive)

Recreational-goods retailer REI plans to open a 400,000 square-foot warehouse in Lebanon, Tenn. next year. (Outside Business Journal)

FedEx Ground is opening a 250,000-square foot distribution center in Temple, Texas. (KCEN)

Startup WorkStep raised $25 million to back its software that helps companies hire and retain supply-chain workers. (VentureBeat)

 

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, and @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