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Cloudy Outlook for Solar Warehouses; Trade, Energy Supply Chain Conflicts

By Paul Page

 

Solar panels on a warehouse roof in Azambuja, Portugal. PHOTO: GONCALO FONSECA/BLOOMBERG NEWS

Warehouse operators are taking a second, harder look at the benefits they hope to reap up on the rooftop. Solar-power installations are a hot topic in the industrial real-estate sector, as developers and tenants look to cut emissions and slash energy costs by putting the vast, open space to use. The WSJ Logistics Report’s Liz Young writes there are headwinds to the technology, however, as companies gain experience with the industrial-scale projects and find the costs and benefits don’t always make sense. Matt Schlindwein of Greek Real Estate Partners says the installations are expensive, and that energy costs in some states may actually exceed traditional electricity expenses. The solar panels also add maintenance concerns, including the potential for damage to rooftops. The calculations are part of the tough scrutiny more energy projects are getting as companies look at how to reduce emissions without damaging their balance sheets.

 
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Quotable

“Something went wrong.”

— Boeing CEO David Calhoun to a Senate panel investigating safety issues, whistleblower retaliation and other problems at the aircraft manufacturer.
 

Economy & Trade

A Georgia plant operated by Qcells, which is under pressure as customers opt to buy less costly imported solar panels. PHOTO: MIKE STEWART/ASSOCIATED PRESS

U.S. efforts to bar Chinese clean-energy imports are increasingly bumping against the Biden administration’s push to build out renewable-energy infrastructure. The White House this month allowed duties aimed at China-based manufacturers of solar panels to take effect just as the International Trade Commission gave its initial go-ahead to an antidumping petition backed by some U.S. solar manufacturers. The WSJ’s Phred Dvorak reports the moves, along with others that raise tariffs on green products such as batteries and electric vehicles, represent some of the strongest attempts yet to wean the U.S. off clean-energy supply chains dominated by Beijing. But the U.S. still relies on imported solar components, and some industry executives say developers now are pausing panel acquisitions, pushing back work timelines and bracing for higher costs. That in turn threatens the fast rollout of renewable energy needed for the U.S. to hit ambitious clean-energy and climate goals.

  • The Biden administration issued an executive order establishing a White House Council on Supply Chain Resilience. (ExecutiveGov)
 
 

Number of the Day

8.7%

U.S. business logistics costs as a percentage of gross domestic product in 2023, down from 9.1% in the previous year but still far above the annual average in eight years before the pandemic, according to the 2024 State of Logistics Report.

 

In Other News

U.S. industrial production rose in May at the fastest pace since July 2023. (MarketWatch)

Retail sales in the U.S. edged up 0.1% in May following a decline in April. (MarketWatch)

Amazon unionized workers in New York City ratified a plan to affiliate with the Teamsters union. (WSJ)

A California agency fined Amazon for failing to comply with a state law requiring companies to disclose workplace productivity measures. (WSJ)

The U.S. Agriculture Department suspended avocado inspections in Mexico over concerns for the security of the inspectors. (New York Times)

A Greek bulker is believed to have sunk in the Red Sea nearly a week after being hit by a sea drone. (TradeWinds)

Authorities in Maryland are seeking to keep the crew of the Dali containership from leaving the area while the crash at the Port of Baltimore is being investigated. (Baltimore Sun)

Ford is testing Mexico’s little-used Guaymas port to export vehicles from its plant in the state of Sonora. (Reuters)

Groups representing owner-operators and the oil industry are suing the Environmental Protection Agency over the agency’s new heavy-duty truck emissions standards. (FleetOwner)

U.S. trucking regulators are raising registration fees for freight brokers, carriers and leasing companies by 25%. (Trucking Dive)

A federal judge ruled BNSF Railway must pay the Swinomish Tribe nearly $400 million for operating oil trains across the tribe's reservation without consent. (Associated Press)

JD.com’s air cargo operation is adding four Boeing 737-800 freighters to its fleet. (Sourcing Journal)

Canada’s WestJet Airlines is canceling and consolidating flights ahead of a potential strike by the passenger carrier’s maintenance engineers. (Dow Jones Newswires)

 

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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