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Digital Freight Brokers Seeking Scale; Solar Supply Chains’ High Hurdles

By Paul Page

 

Trucks leaving Georgia’s Port of Savannah last fall. PHOTO: ELIJAH NOUVELAGE/BLOOMBERG NEWS

Consolidation in the digital freight sector is turning into an opportunity for some operators. Digital freight broker CDL 1000 is expanding its reach in port trucking with the acquisition of competitor NEXT Trucking, the WSJ Logistics Report’s Paul Berger writes, giving the company a significant foothold in the big business at Southern California’s ports of Los Angeles and Long Beach. Brookfield Growth and Mucker Capital provided financial support for the deal, following their backing of NEXT Trucking, a tech-focused freight broker founded in 2015. That market has come under pressure as freight demand has wavered over the past year and venture-capital backing has waned. But Brookfield looks to be getting behind CDL 1000 and what the venture firm suggests is a strategy to grow through more acquisitions. Load-matching technology may have brought the startups into the business, but it looks like greater scale is what will keep them operating.

  • Mack Trucks is expanding production of medium-duty trucks at its Roanoke, Va., plant. (Commercial Carrier Journal)
  • Barclay’s slashed its outlook for Rivian Automotive on the impact of an “EV winter.” (Barron’s)
 
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Quotable

“Any time the Chinese start nosing around a coastal African country, we get anxious.”

— A senior U.S. official, on efforts to stop China from adding military bases to its extensive commercial port network in Africa.
 

Supply Chain Strategies

Workers produce photovoltaic panels for solar-power generation in Jiangsu Province, China. PHOTO: CFOTO/ZUMA PRESS

The U.S. faces high hurdles in trying to loosen China’s tight grip on solar-power supply chains. China has come to dominate every step of the long, complex manufacturing process for solar panels, the WSJ’s Phred Dvorak and Andrew Mollica write, offering a lesson in how massive scale across the many parts of a supply chain can turn into a lasting advantage. The cost of everything from electricity to labor is much cheaper there than in the U.S. or Europe, helping China’s solar-manufacturing operations expand and attract talent, research money and ecosystems of suppliers. The U.S. is trying to close the gap with big production incentives tied to each major stage of the production process. But not all parts of the supply chain qualify for support, and companies say that inflation and ballooning capital costs, combined with a crash in Chinese solar prices, are widening the cost gap again.

 

Number of the Day

776,974

Overall loads posted to DAT’s truckload spot market load board in the week ending Feb. 10, down 36% over the past three weeks and 53% below the year-ago level, according to DAT Solutions.

 

In Other News

A Goldman Sachs study shows U.K. trade volumes are roughly 15% lower than in comparable countries since Brexit. (MarketWatch)

The U.S. seized a Venezuelan-owned 747 freighter with ties to Iran’s Islamic Revolutionary Guard Corps that had been grounded in Argentina. (WSJ)

Apparel retailer Express is preparing for a debt restructuring that could include filing for bankruptcy within weeks. (WSJ)

Specialty retailer The Children’s Place will consider strategic alternatives if it can’t find new financing to shore up its depleted funds. (MarketWatch)

London-based retailer The Body Shop is preparing to enter administration in a move that will trigger job losses and store closures. (The Guardian)

Discount retailer Big Lots is seeking new financing as it grapples with years of losses and dwindling liquidity. (Bloomberg)

Many shipping companies are still avoiding the Red Sea even as allied air strikes reduce the risk of attacks by Yemen’s Houthi rebels. (Financial Times)

A Greek-owned bulk vessel was hit by two missiles in waters between Yemen and Djibouti. (ShippingWatch)

Dubai airport cargo handler Dnata suspended inbound freight flows for two days amid a surge in shipments. (The Loadstar)

A former employee shot dead the head of a Greek shipping company and two others at the firm's office south of Athens before killing himself. (Reuters)

Angela Chao, CEO of shipping’s Foremost Group and sister of former Transportation Secretary Elaine Chao, died in a car accident. (TradeWinds)

Whirlpool expects to cut its appliance manufacturing and supply chain costs by up to $200 million this year. (Supply Chain Dive)

The Chicago suburb of Deerfield, Ill., is moving to ban new warehouses and freight terminals. (Chicago Tribune)

South Korea’s CJ Logistics is accelerating a global expansion effort with plans to add three distribution centers in the U.S. (Korea Herald)

New York City officials plan to turn six waterfront locations into maritime shipping hubs to handle booming e-commerce deliveries. (Gothamist)

 

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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