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Watching the Ever Forward; Ukraine’s Resilient Factory; Apple’s India Bet

By Paul Page

 

A tugboat pushes a barge full of containers unloaded from the Ever Forward on Monday. PHOTO: JIM WATSON/AGENCE FRANCE-PRESSE/GETTY IMAGES

The latest debacle in container shipping has become Maryland’s biggest new tourist attraction. People are flocking to a small park south of the Port of Baltimore to gawk at the Evergreen Marine vessel that’s been stuck for three weeks now in the Chesapeake Bay muck. The WSJ’s Julie Bykowicz reports that Ever Forward’s plight is a testament to both global supply-chain clogs and Covid-19 pandemic boredom. It’s a sequel to last year’s drama in the Suez Canal with another Evergreen vessel, the Ever Given, with decidedly lower stakes since it isn’t blocking ship traffic. But the grounding has frustrated shippers with nearly 5,000 containers stuffed with goods on board and salvors trying to get the ship unstuck. Authorities have unloaded dozens of boxes onto barges to lighten the ship and dredged some 210,000 cubic yards from around the ship, all of that under the watchful eyes of eager crowds. 

 

Quotable

“It’s just an amazing sight, and so crazy to think about how this could happen with all that technology on board.”

— Karen Piccoli, watching the Ever Forward from a park along the Chesapeake Bay
 
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Manufacturing

The Leoni Wiring Systems plant in Ukraine’s Lviv region. PHOTO: PHOTO: ALONA NIKOLAIEVYCH/UKRINFORM/ZUMA PRESS

An automotive parts supplier’s plant in western Ukraine is setting a new standard for supply-chain resilience. German auto supplier Leoni closed but then reopened its factory soon after the Russian invasion of the country began, even as other auto components suppliers withdrew. The WSJ’s William Boston reports the plant resumed production after workers returned and insisted the shifts resume in an act of defiance against the invasion. Leoni’s decision pushed off plans to shift production of wire harnesses to Romania and helped protect the livelihoods of its Ukraine staff. It also affected Europe’s biggest car makers, which depend on the factory’s simple but vital components. But the site is receiving its manufacturing materials by inbound trucks and shipping out its finished products to customers in the West.

 

Here are recent developments following Russia’s invasion of Ukraine:

Russian forces fired on Ukrainian positions and residential areas in the country’s east overnight and unleashed new rocket attacks, while fortifying positions there with new deployments of air-defense systems, Ukrainian officials said Tuesday. (WSJ)

Ukrainian President Volodymyr Zelensky launched a fresh appeal for military aid as the country prepared for heavy fighting with Russian forces in the east. (WSJ)

The World Bank projects Ukraine’s economy will shrink by 45% this year. (WSJ)

The mayor of the Ukrainian port city of Mariupol says more than 10,000 civilians have died in the Russian siege of the city. (Associated Press)

State-owned Russian Railways was declared in default of a bond obligation. (WSJ)

Swedish telecommunications company Ericsson is suspending its business in Russia indefinitely. (WSJ)

For the latest updates from Russia and Ukraine, click here

 
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Supply-Chain Strategies

An Apple store in Mumbai. PHOTO: FRANCIS MASCARENHAS/REUTERS

Apple is betting that India’s ambitions for manufacturing in the country match the electronics giant’s own plans. India is emerging as the company’s top manufacturing target in Asia outside of China, the WSJ’s Megha Mandavia writes in Heard on the Street. But the country needs a stronger domestic market, export-friendly policies and better logistics infrastructure to snatch a sizable chunk of the manufacturing pie. Apple just announced plans to start producing its iPhone 13 in India, its latest move to spread out a supply chain that exerts strong influence across a broad network of suppliers and transportation operators. India’s share of Apple’s global manufacturing base is projected to grow from 1.3% in 2021 to 5% to 7% this year. But uprooting a supply-chain ecosystem built on decades of favorable Chinese government policies and plenty of cheap labor will take time and significant investments beyond Apple’s commitment.

 
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Number of the Day

5.8%

Average expectations among trucking executives for rate increases in the next six months, down from 6% in the fourth quarter and the first sequential decline in the Cowen quarterly carrier survey since the second quarter of 2020.

 

In Other News

The Biden administration plans to temporarily allow high-ethanol content gasoline to be sold in the hot summer months in a bid to tame high fuel prices at the pump, according to senior administration officials. (WSJ)

Car sales in China dropped 10.5% in March in a sign that anti-Covid measures are taking a toll on the country's economy. (WSJ)

Inflation in China ticked up 1.5% in March. (WSJ)

Thousands of sellers are fighting increased fees at digital marketplace Etsy, and some are closing their shops in protest. (WSJ)

Shopify is seeking to change its share structure to protect the voting power of the e-commerce company’s leader. (WSJ)

Chinese provinces are shutting more highways and restricting truck drivers under toughening Covid-19 lockdowns. (Lloyd’s List)

British truckers say lengthy, persistent backups at English Channel ports are damaging trade with the European Union. (Financial Times)

Texas Gov. Greg Abbott's directive to inspect more cargo entering from Mexico is leading to long truck delays at border crossings. (Texas Tribune)

China is ordering far larger amounts of U.S. grains for delivery over the current and coming marketing years. (Dow Jones Newswires)

More than 470 bulk cargo ships are queued up outside Chinese ports as Covid-19 lockdowns slow onshore operations. (ShippingWatch)

CMA CGM will stop loading plastic waste on its ships as of April 15. (Offshore Energy)

U.S. importers of goods from Europe are increasingly shipping by air to get around congestion at East Coast ports. (Journal of Commerce)

World-wide shipments of personal computers fell 5.1% in the first quarter. (Dow Jones Newswires)

Online pet products retailer Chewy is dropping plans to move into a 750,000-square-foot fulfilment center in Windsor, Conn. (Hartford Business Journal)

London-based Interact Analysis forecasts skyrocketing growth in micro-fulfillment centers in the coming years. (DC Velocity)

The North Carolina Railroad Co. is investing in a steel mill producing rebar for Nucor in the state. (Progressive Railroading)

Supply-chain visibility startup Tive raised $45 million in a Series B funding round. (TechCrunch)

Scammers are defrauding businesses searching for sea containers with phony offers for boxes. (Logistics Manager)

 

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, @pdberger. and @LydsOneal. Follow the WSJ Logistics Report on Twitter at @WSJLogistics.

 
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