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The Wall Street Journal. The Wall Street Journal.
LogisticsLogistics

Airlines Probe Bogus Parts; Coal’s Staying Power; Rivalry Over Lithium

By Paul Page

 

A CFM56 jet engine produced by CFM International, a joint venture of General Electric and Safran. PHOTO: PHILIPPE WOJAZER/REUTERS

The biggest U.S. airlines are searching for thousands of jet-engine parts with fake safety certificates that were installed on their planes. The spare parts, ranging from simple nuts and bolts to more critical turbine blades, went into dozens of jet engines made by a General Electric joint venture during maintenance work that were then installed back onto aircraft. The WSJ’s Sharon Terlep and Benjamin Katz report the scandal involves a little-known spare parts broker, AOG Technics, a middleman in highly complicated and high-stakes global aerospace supply chains. A lawsuit filed by General Electric and its engine partner Safran claim the company falsified documents to sell engine parts to airlines. The incident has rippled through an industry that carefully monitors the veracity of every component installed on an aircraft. It also poses questions about the efficacy of the predominantly paper-based system used to track parts and the ease of fabrication.

  • Tom Gentile resigned as CEO of Spirit Aerosystems after a series of production problems at the aerospace supplier. (WSJ)
 
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Commodities

The Gwadar port in southwest Pakistan, the centrepiece of a multi-billion dollar Chinese infrastructure project in the country. PHOTO: AHMAD KAMAL/ZUMA PRESS

China’s pledged pullback from global coal supply chains may take longer than earlier believed. China and Pakistan this year resurrected long-dormant plans for a coal plant in Gwadar, a port city at the center of an economic corridor Beijing is seeking to develop. The WSJ’s Sha Hua reports that China is also forging ahead with plans for new coal-fired power plants in Indonesia, where the government wants them to supply energy for processing nickel, which is used to make batteries for electric cars. Climate activists who applauded China’s pledge to stop building new coal plants overseas now are wondering whether the world’s largest carbon emitter is going back on its word. But geopolitical realities and China's growth ambitions have interceded. China wants to develop Gwadar into a hub for an economic corridor that would give it access to key shipping routes at the mouth of the Persian Gulf.

 
 
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Quotable

“Overall, the industry is running on fumes.”

— Economist Beau Whitney, on the difficulty in setting up a legal cannabis production and distribution business.
 

Commodities

China is the world leader in processing lithium and it is making major, risky investments to secure raw lithium in Latin America and Africa. Now, the U.S. is trying to develop its own supply to reduce its reliance on China for the critical component in batteries and the world’s transition to green energy. A WSJ Video report looks at the developing minerals rivalry and whether the U.S. can ever catch up.

 

Number of the Day

36,800

Preliminary net orders for Class 8 heavy-duty trucks in North America in September, up 67% from August and the strongest order month this year, according to ACT Research.

 

In Other News

A measure of U.S. service-sector activity signaled economic growth was slowing in September. (MarketWatch)

U.S. factory orders jumped a faster-than-expected 1.2% in August. (MarketWatch)

U.S. lawmakers want the National Basketball Association and its players’ union to cut ties with Chinese gear makers allegedly linked to forced labor in the country’s Xinjiang region. (WSJ)

Former Pfizer business unit and talc supplier Barretts Minerals filed for bankruptcy protection. (WSJ)

Ford’s sales of hybrid cars and pickup trucks rose 41.4% last quarter. (WSJ)

Uber launched a service carrying returned packages for consumers. (WSJ)

Infrastructure-focused investment firm Meridiam has developed a strategy to reduce risks in emerging-market projects such as a port in Gabon. (WSJ)

Taiwan canceled flights and closed off shipping lanes ahead of the expected arrival this week of Typhoon Koinu. (Associated Press)

Japanese and U.S. business leaders at a summit called on their governments to invest more in supply chains. (Japan Times)

TikTok pulled its online shopping service in Indonesia after the country placed restrictions on e-commerce sales. (BBC)

Qatar is preparing to charter more than 100 new liquefied natural gas carriers to meet growing gas output. (TradeWinds)

A new backlog of 16 containerships has formed at the Port of Savannah. (Journal of Commerce)

Container movements at Mexico’s port of Lazaro Cardenas are being slowed by persistent congestion at the Pacific coast gateway. (The Loadstar)

DP World and Maspion Group began construction of a large container terminal at Indonesia’s Gresik port in East Java. (The National)

Former Flexport CEO Dave Clark says the freight forwarder is “facing serious internal and industry challenges.” (Air Cargo News)

U.S. online discount grocer Martie plans to add two warehouses by next year to expand its model of nationwide surplus-goods delivery. (Modern Retail)

Cushman & Wakefield completed construction of a 1-million-square-foot speculative warehouse in Ocala, Fla. (Business Journals)

 

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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