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Amazon Targets Discount Sales Rivals; Scope 3 Casts Emissions Challenge

By Paul Page

 

Shein has sought to poach Amazon employees to help build out logistics and supply-chain operations in the U.S. PHOTO: OCTAVIO JONES/GETTY IMAGES

Increasingly crowded trans-Pacific airfreight lanes are about to get a new rush of e-commerce shipments. Amazon’s planned launch of a service focused on shipping cheap goods directly from warehouses in China sets up new competition with low-cost platforms Temu and Shein in a business that has buffeted online retail markets. The WSJ’s Tracy Qu and Sherry Qin report that Amazon unveiled a plan to debut the new channel on its platform at an invite-only meeting with Chinese merchants this week. Amazon plans to ship the products directly from China to consumers in the U.S. within nine to 11 days. Amazon’s plan, earlier reported by The Information, would bring goods under the de minimis provision that waives certain tariffs for low-value goods. It also has the potential to add to airfreight demand in trans-Pacific routes that have seen capacity squeezed and rates surge on the new volumes.

  • Human rights activists are urging the U.K. financial regulator to block Shein’s initial public offering in London. (The Guardian)
  • Arkansas is suing Temu, accusing the e-commerce app of violating deceptive trade practices that include “dangerous malware.” (The Verge)
 
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Quotable

“We recognize that we need to be focused on what are the parts of the business that we believe are contributing and have a future, and some of those need to change.”

— Walgreens Boots Alliance CEO Tim Wentworth, on plans to close a significant number of the pharmacy chain’s 8,600 U.S. stores.
 

Sustainability

Microsoft Chief Sustainability Officer Melanie Nakagawa. PHOTO: HUGO AMARAL/ZUMA PRESS

Scope 3 emissions are emerging as a major concern for companies seeking to eliminate carbon from their supply chains. Microsoft recently said that emissions from its supply chain and value chain make up more than 96% of the tech giant’s overall output. The company’s chief sustainability officer, Melanie Nakagawa, tells the WSJ’s Perry Cleveland-Peck that “Scope 3 is everyone’s challenge,” pointing to the operations from the company’s suppliers that are outside its own direct business. “We have thousands upon thousands of suppliers,” she says. “What we’re looking at is those of the largest volume because that is really where the energy matters.” That concern over indirect, third-tier suppliers is a growing concern for many companies. It also figures prominently in logistics operations, where goods often pass through multiple service providers before reaching their destination. One recent study found just 15% of companies have set targets for Scope 3 emissions.

  • Daimler Truck North America is working with Salem Carriers to deliver inbound parts on electric trucks to its plant in North Carolina. (Automotive Logistics)
  • Lufthansa Cargo and Korean Air Cargo struck deals with logistics customers to bring in sustainable aviation fuel. (Air Cargo News)
 

Number of the Day

$16.6 Billion

Projected worldwide market for warehouse software in 2030, up from $7.2 billion in 2023 for a 12.7% compound annual growth rate, according to Interact Analysis.

 

In Other News

New orders for manufactured goods in the U.S. barely grew last month following a downward revision in April orders. (MarketWatch)

The U.S. economy grew at a 1.4% pace in the first quarter, slightly faster than earlier estimates. (MarketWatch)

Levi’s direct-to-consumer sales rose 11% last quarter, outpacing overall apparel sales. (WSJ)

Apparel retailer H&M says sales declined at the start of its fiscal third quarter. (WSJ)

The London Metal Exchange is exploring adding a warehouse in Hong Kong to meet rising demand for the physical exchange of metals. (South China Morning Post)

Taiwanese chip packaging and testing firm ASE Technology plans to build facilities in the U.S. and Mexico. (Nikkei Asia)

Houthi rebels struck another cargo ship in the Red Sea with a seaborne explosives-laden drone. (Associated Press)

Diversions from ocean trade are leading to congestion and delays on bustling China-Europe rail freight lines. (Journal of Commerce)

The Panama Canal is easing draft restrictions and adding booking slots as drought concerns ebb. (Splash 247)

Average vacancy rates at logistics properties in east and north China are approaching their highest levels in years. (Bloomberg)

Former employees at bankrupt US Logistics Services are suing for damages because they weren’t notified about the shutdown. (The Loadstar)

U.S.-based Coffee Holding canceled a planned merger with London-based shipping and logistics operator Delta. (Ship & Bunker)

 

Executive Insights

Here is our weekly roundup of stories from across WSJ Pro that we think you'll find useful.

  • The Supreme Court ruled that Purdue Pharma’s family owners can’t use the drugmaker’s bankruptcy case to settle civil opioid lawsuits without consent from plaintiffs.
  • Getting full value out of AI workplace assistants​ is turning out to require a heavy lift from enterprises.
  • Finance chiefs’ median pay rose nearly 8.5% last year as stock-based incentives lifted compensation.
  • Poor returns on boom-era funds are threatening to become a long-term drag on the venture-capital industry.
  • 🎧 Listen to Rubrik co-founder and CEO Bipul Sinha discuss his journey from growing up in poverty in rural India to navigating his cybersecurity firm through a $5.6 billion IPO.
 

The Wall Street Journal’s Evan Gershkovich is being wrongfully detained in Russia after he was arrested while on a reporting trip and accused of spying—a charge the Journal and the U.S. government vehemently deny. Follow the latest coverage, sign up for an email alert, and learn how you can use social media to support Evan.

 

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 X at @WSJLogistics.

 
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