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Rail Stoppage Looming; Amazon Boosts Drivers; Rolling Out Chargers

By Paul Page

 

A Union Pacific Railroad train departing an intermodal facility in Joliet, Ill. PHOTO: TANNEN MAURY/EPA-EFE/SHUTTERSTOCK

Today’s newsletter was written by Liz Young.

The White House and rail shippers are trying to figure out how U.S. supply chains can keep moving if a labor impasse halts freight rail traffic. The railroads and labor unions are continuing contract talks, the WSJ’s Andrew Restuccia, Ted Mann and Esther Fung report, even as administration officials talk with other transport companies about how goods can keep flowing if the two sides can’t meet a Friday deadline for an agreement. Several railroads have halted hazardous materials transports and may embargo other categories, including intermodal shipments filled with retail goods. Trade groups are calling for the White House and Congress to head off any stoppage, and warning of peril to a fragile U.S. economy if the trains stop moving. Railroad operators have new deals with most of their unions, but the two remaining holdout labor groups represent about 66,000 workers.

 
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E-Commerce

An Amazon electric delivery van in Chicago. PHOTO: JAMIE KELTER DAVIS/BLOOMBERG

Amazon is raising driver pay to help make sure it is staffed up for the holiday season. The WSJ’s Dana Mattioli reports Amazon will spend $450 million to raise wages and benefits for members of its Delivery Service Partners network, a program of small businesses that drive fleets of Amazon-branded delivery vans. The company also plans to offer drivers financial support toward educational programs and a retirement investment plan. The pay bump comes as Amazon begins hiring for the critical peak holiday shipping season and as the company reshapes its logistics network after expanding its footprint aggressively during the pandemic. Amazon’s pay increases for warehouse workers have helped set the bar for wages in that sector. The company is following broader trends in the driver market, where tight labor conditions have led to higher wages, bonuses and benefit packages to get workers behind the wheel.

  • A union election at an Amazon warehouse in upstate New York has been scheduled for October. (WSJ)
 
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Quotable

"A trial about tweets. I mean, really?"

— Marc Mukasey, a lawyer for Nikola founder Trevor Milton, on the first day of Mr. Milton’s securities fraud trial.
 

Transportation

A rendering of a TeraWatt fleet-charging site under development in Arizona. PHOTO: TERAWATT INFRASTRUCTURE

An electric-vehicle charging startup with plans to serve commercial fleets is getting a $1 billion jumpstart. TeraWatt Infrastructure says it is using the new backing to build charging stations across the U.S. for commercial fleets of cars, delivery vans or trucks. The WSJ’s Jennifer Hiller reports the company has sites in 18 states and expects to have some charging stations up and running within a year. Charging infrastructure is getting more attention as truck and automobile makers begin to focus more on developing electric vehicles. Much of that investment so far has focused on passenger cars rather than commercial trucks. TeraWatt’s charging banks would instead focus on those commercial fleets. But building out charging stations is also complicated, because of the large electrical load, the amount of infrastructure needed, supply-chain backlogs for certain materials and a potentially long process to connect to the grid.

 
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Number of the Day

575,513

The number of containers, measured in 20-foot-equivalent units, the Port of Savannah handled in August, its busiest month on record and up 18.5% from the same month last year.

 

In Other News

U.S. consumer prices rose 0.6% from July to August. (WSJ)

U.S. gasoline prices have fallen for 13 straight weeks. (WSJ)

Economists say the U.K. may fall into recession earlier than forecast due to the impact of the funeral for Queen Elizabeth II. (MarketWatch)

Sporting goods retailer Olympia Sports filed for bankruptcy and plans to liquidate. (WSJ)

Foxconn and India’s Vedanta Resources will jointly develop a $19.4 billion semiconductor plant in India’s state of Gujarat. (Financial Times)

Memory chip maker Micron is breaking ground on a $15 billion factory in Idaho and plans to announce another U.S. plant soon. (Reuters)

German truck maker Traton’s MAN Truck & Bus and Scania subsidiaries are selling off their Russian operations. (Dow Jones Newswires)

China’s Shanghai and Ningbo ports are closing for the second time in 10 days because of a typhoon. (The Loadstar)

Ocean and air freight analytics platform Xeneta raised $80 million in a funding round at a $265 million valuation. (Splash 247)

An Australian competition commission called for an end to ocean carriers’ antitrust immunity. (Journal of Commerce)

BlackRock has amassed a more than 5% stake in dry-bulk operator Golden Ocean. (ShippingWatch)

A TuSimple executive resigned after investors sued the autonomous trucking startup alleging securities fraud. (FleetOwner)

USA Truck shareholders approved the truckload carrier’s sale to freight forwarder DB Schenker for $435 million. (Transport 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 Twitter at @WSJLogistics.

 
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