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LogisticsLogistics

Automotive Deal Brings Higher Costs; Cities Face Crumbling Rail Bridges

By Paul Page

 

A Ford assembly plant in Dearborn, Mich. PHOTO: RYAN GARZA/USA TODAY NETWORK/REUTERS

The seven-week-old strike against Detroit’s Big Three automakers is just about over but the serious costs to the companies are about to kick in. The tentative labor agreement between the United Auto Workers and General Motors follows similar deals with Ford and Chrysler-parent Stellantis that will get assembly plants and parts factories back in operation. The WSJ’s Mike Colias reports the conclusion also portends difficult times ahead for the Detroit Three with the new pacts expected to push the companies’ labor costs higher than initially expected when talks began. Ford executives say their UAW contract with its 25% wage increase over four years would add $850 to $900 per vehicle in additional costs. UAW President Shawn Fain called the latest agreements a “turning point” and emphasized the next step will be trying to organize workers at automakers, such as Tesla, Toyota and Volkswagen, whose U.S. factories aren’t unionized.

  • GM agreed under its labor deal to put battery-plant workers making its proprietary Ultium cells under the master UAW agreement. (WSJ)
  • Canadian auto workers reached a tentative deal with Stellantis after a brief walkout. (WSJ)
 

Quotable

“We have work to do. We have to identify efficiencies. We have to increase productivity. It is a record contract.”

— Ford CFO John Lawler
 
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Infrastructure

A train fell into the Yellowstone River when a Montana bridge collapsed in June. PHOTO: MATTHEW BROWN/ASSOCIATED PRESS

The toxic train derailment in East Palestine, Ohio, last year is leading many cities to take a harder look at the railroad infrastructure around their communities. Much of the scrutiny is falling on the dilapidated state of many rail bridges, which present a pressing safety concern across cities and towns. The WSJ’s Esther Fung reports there are more than 70,000 railroad bridges in the U.S. and many of the steel, concrete or timber bridges are showing their age. The structures play a critical role in the movement of freight nationwide, but some were built in the 1800s. Binghamton, N.Y., stepped up its own oversight with an independent inspection that concluded that most of the bridges over public streets were in poor or severe condition. Norfolk Southern has since stepped up its efforts to repair the structures, which the city says is the direct result of its own intervention.

  • Cincinnati is trying to sell a 337-mile stretch of track to Chattanooga, Tenn., that the city owns. (Cincinnati Enquirer)
 

Number of the Day

107.25

The Truckstop.com index for load availability on the platform’s spot truckload market for the week ended Oct. 30, down in the fourth straight week-to-week decline to the lowest level since the week ending July 17.

 

In Other News

U.S. consumer sentiment improved slightly at the end of October. (MarketWatch)

A deadly oil-tanker explosion off Nigeria last year highlights the risks of aging fleets used for offshore oil production. (Associated Press)

Battery maker Panasonic slashed its full-year outlook on weakening demand from Tesla. (Financial Times)

Canadian miner Almonty Industry says the war in Ukraine is triggering high demand for tungsten used in munitions manufacturing. (Nikkei Asia)

Jet engine maker Safran says supply-chain disruptions are slowing production while growing demand for fleet repairs is straining parts inventories. (Reuters)

CMA CGM announced rate increases in a Europe-to-U.S. market one executive termed “a total disaster.” (The Loadstar) 

Cargo owners on Asia-Europe trade lanes are putting out tenders for 2024 shipping contracts in a weak rate environment. (Journal of Commerce)

Overall container throughput at China’s Port of Shanghai expanded 4.7% in September to the equivalent of more than 4 million boxes. (Port Technology)

Ship owner George Economou is suing Performance Shipping’s directors and insiders after they rejected a tender offer. (TradeWinds)

XPO’s third-quarter operating profit rose 10.8% to $154 million on a slight gain in revenue to $1.95 billion. (Dow Jones Newswires)

Air Canada says it remains committed to cargo despite canceling two freighter orders. (Dow Jones Newswires)

Chinese apparel giant Shein is buying the U.K. fast-fashion brand Missguided. (BBC)

Bankrupt furniture retailer Mitchell Gold and Ryder reached an agreement on undelivered orders. (Supply Chain Dive)

 

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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