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Pipeline Pumping Up Gas Prices; Walmart Wants to Grow Even Bigger

By Paul Berger

 

Storage tanks and trucks at the Imperial refinery in Edmonton, Alberta, Canada.

PHOTO: JASON FRANSON/BLOOMBERG NEWS

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Truckers in the Midwest may soon have Canada to blame for rising prices at the pump. Canadian oil companies are about to start funneling crude oil through a long-delayed, 715-mile pipeline expansion to the Pacific Ocean. The WSJ’s David Uberti and Vipal Monga write that the expansion will enable Canada to sell more oil to the U.S. West Coast and to fast-growing Asian economies while siphoning off a source of cheap oil in the U.S. The Midwest has long benefited from Canada having to pump crude along pipelines through the region to the Gulf Coast. That has pushed down prices paid by many U.S. refiners and, in turn, by gas stations and airports from Minneapolis to Detroit. Oil traders expect markdowns to shrink by a few dollars a barrel once the expansion opens and refiners to pass on the billions of dollars in extra costs to drivers.

 

“The Midwest is held captive by Canadian crude oil.”

— Martin King, an analyst at RBN Energy
 
 
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Supply Chain Strategies

Walmart is adding or expanding 150 stores. PHOTO: EDUARDO MUNOZ/REUTERS

Walmart wants to grow again. The retail giant plans to open or expand 150 stores in the U.S. over the next five years, beginning with 12 new stores this year. Its push includes converting several smaller-format stores to larger Supercenters and remodeling 650 U.S. locations. The WSJ’s Sarah Nassauer reports that the strategy is a reversal from recent years when Walmart focused on keeping store count flat. The company joins other retailers that are opening bricks-and-mortar stores to meet demand from in-person shoppers and speed up online fulfillment. Store openings outpaced closures for the second straight year in 2023 after years of net closures, according to research firm Coresight Research. Walmart has been using its 4,700 U.S. stores to play a growing role in its e-commerce fulfillment strategy, with store associates picking and packing online orders.

 
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Number of the Day

95.0

U.S. Bank freight payment index for shipments in the fourth quarter, down 15.7% from a year ago for the largest annual decline in index data going back to 2010.

 

In Other News

The Federal Reserve left interest rates steady. (WSJ)

Chinese factory activity contracted for a fourth straight month in January. (WSJ)

European Union regulations are hampering the bloc’s ability to compete with China and the U.S. (WSJ)

German inflation fell again in January. (WSJ)

C.H. Robinson Worldwide said profit fell sharply in the fourth quarter. (WSJ)

Boeing is bracing for a financial blow from the Alaska Airlines door-plug blowout. (WSJ)

President Biden will travel to East Palestine, Ohio, to meet with residents nearly one year after the derailment of a Norfolk Southern train. (WSJ)

U.S. authorities stopped the shipment of 24 Nvidia chips bound for a TuSimple subsidiary in Australia. (WSJ)

Samsung Electronics posted its weakest annual earnings in more than a decade. (WSJ)

Adidas revenue and operating profit last year exceeded company guidance after a better-than-expected performance in the fourth quarter. (WSJ)

H&M Hennes & Mauritz unexpectedly replaced its chief executive after several years of crises and stagnant growth. (WSJ)

China has overtaken Japan as the world’s leading exporter of autos. (Nikkei Asia)

Greek vehicle-carrier owner and operator Neptune Lines is ordering more liquified natural gas dual-fuel vessels. (Splash 247)

Trucker Roadrunner is expanding by adding 135 lanes to its less-than-truckload network. (Logistics Management)

Gummy-bear maker Haribo of America is expanding its distribution center in Bristol, Wis. (Supply Chain Dive)

A wind farm off the coast of Scotland has sold more than half its output to Google and Amazon.com. (The Maritime Executive)

 

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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