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Electric Vehicles’ Hurdles on the Road; Faltering Orders for Food Delivery

By Paul Page

 

Heavier electric vehicles, such as the Ford F-150 Lightning, typically have shorter ranges than lighter EVs. PHOTO: JEFF KOWALSKY/AGENCE FRANCE-PRESSE

Automakers may be rapidly building out electric-vehicle supply chains, but the operations on the road aren’t yet in gear. A recent 1,000-mile road trip in the longest-range electric vehicle on the market, a Lucid Air Grand Touring, clarified how far the sector must go for drivers to have a consistent and satisfying experience on par with buying a gasoline vehicle. The WSJ’s Christopher Mims writes in a Keywords column that issues for drivers include the lack of reliable estimates on the true range of vehicles as well as software complications for machines that are effectively smartphones on wheels. Also looming large is that America doesn’t have enough reliable chargers where they are most needed to make powering up as easy as fueling up. The hurdles are separate from the trucking sector’s challenges, but addressing them will help set the groundwork for improvements in the world of commercial vehicles.

  • The global nickel supply is heading for a bigger surplus this year as Indonesian suppliers increase their output. (Nikkei Asia)
  • ArcelorMittal will supply General Motors with lower-carbon recycled steel for its North American manufacturing. (Northwest Indiana Times)
 
 
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E-Commerce

PHOTO: MIKE SEGAR/REUTERS

The food-delivery business is struggling to adjust to a changing consumer landscape. Chicago-based takeout pioneer Grubhub is laying off around 15% of its workforce, the WSJ’s Heather Haddon reports, as the company seeks to reduce costs to stay competitive in a market featuring well-funded rivals and foundering demand. Food-delivery companies’ sales surged early in the Covid-19 pandemic but have since plateaued as customers resume eating out at restaurants. Grubhub was once the market leader in its category but has since fallen to No. 3 behind DoorDash and Uber Eats. Food businesses have had a tough time making the logistics that underpin their business pay as consumer spending has shifted. DoorDash said last year that it would cut around 1,250 people, or 6% of its workforce. Meal-kit delivery company Blue Apron in December laid off 10% of its workforce and last month sold its logistics assets.

  • New York City established a minimum wage for food delivery workers that will nearly triple their hourly pay. (Gothamist) 
 
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Quotable

“We must be prepared for worst-case and extreme scenarios.”

— Chinese President Xi Jinping, signaling the potential for escalating conflict with the West
 
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Number of the Day

$7 Billion

Combined operating earnings for container lines in the first quarter, down from $43.9 billion in the quarter a year ago but ahead of $621 million in operating earnings in the first quarter of 2019, according to Sea-Intelligence.

 

In Other News

Authorities warned that fixing the collapsed portion of Interstate 95 in Philadelphia could take months. (WSJ)

Major pharmaceutical suppliers agreed to pay $19 billion to states that accused them of fueling the opioid crisis. (WSJ)

The U.S. plans to allow top semiconductor manufacturers from South Korea and Taiwan to maintain and expand their chip-making operations in China without U.S. reprisals. (WSJ)

The U.S. will block the import of goods made by Chinese laser printer maker Ninestar, majority owner of Lexmark International. (WSJ)

A longtime friend of former Zappos CEO Tony Hsieh is suing the entrepreneur’s family over ownership of the “Delivering Happiness” workplace-culture brand. (WSJ)

Apple contract manufacturer Compal Electronics is preparing to expand production capacity in Vietnam. (South China Morning Post)

Charter rates for very large crude carriers heading to Asia jumped 31% over the past week. (TradeWinds)

Denmark’s Uni-Tankers swung to a $61 million net profit in its past fiscal year​, the product tanker operator’s best result in 28 years. (ShippingWatch)

Georgia will spend $250 million to expand vehicle-handling capacity at the Port of Brunswick. (Automotive Logistics)

Shipping and logistics company Auctane, formerly Stamps.com, acquired returns management platform Return Rabbit. (Pymnts)

Supermarket chain WinCo Foods is looking at placing a 1.1 million-square-foot distribution center in Ellensburg, Wash. (Daily Record)

 

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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