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Rail Safety Efforts Stall; Logistics Payrolls Grow

By Liz Young

 

A Norfolk Southern train in East Palestine, Ohio. PHOTO: CAROLYN KASTER/ASSOCIATED PRESS

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One year after a toxic train derailment in East Palestine, Ohio, little has changed to improve railroad safety. The WSJ’s Esther Fung reports that data show an increase in some types of accidents since a chemical-hauling Norfolk Southern train derailed Feb. 3, 2023. The total number of derailments reported by major U.S. freight railroads rose 13% between February and October last year compared with the same period in 2022. Unlike commercial airlines, many large freight railroads have yet to participate in a federal system that allows workers to anonymously file reports of minor accidents and close calls. Legislative measures to overhaul railroad safety have stalled, including a bipartisan bill introduced in the Senate last year. Meanwhile, cleanup efforts continue in East Palestine, and railroad and federal and state authorities are still doing environmental testing for chemicals associated with the derailment.

 
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Economy & Trade

Courier and messenger companies added 2,800 jobs last month. PHOTO: MICHAEL BROCHSTEIN/ZUMA PRESS

Logistics operators are adding jobs despite soft freight demand. The WSJ Logistics Report writes trucking, warehousing and parcel-delivery companies added a combined 10,700 jobs from December to January, according to the U.S. Bureau of Labor Statistics, even as they grapple with a downturn in the goods-moving economy. Experts say the uptick isn’t necessarily a signal that freight demand is returning. Employment in the industry remains well below pandemic-era highs and was down by 117,300 jobs compared with a year earlier. Warehouse operators are looking to offload some storage space by listing real estate for sublease. An economist with online jobs marketplace ZipRecruiter says the industry appears to be “right-sizing for more normal activity levels.”

  • U.S. employers added a seasonally adjusted 353,000 jobs in January, outpacing expectations. (WSJ)
 

Quotable

“The whole industry is struggling from a volume perspective.”

— Satish Jindel, president of ShipMatrix
 
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Number of the Day

19%

Year-over-year increase in global air-cargo demand in the last two weeks of January compared with the same period last year, according to WorldACD.

 

In Other News

New vehicle sales in the U.S. fell 6.8% in January. (MarketWatch)

Intel is delaying the construction of a $20 billion chip-manufacturing project in Ohio. (WSJ)

Apple posted a sales increase for the holiday quarter, ending one of the company’s worst earnings streaks in more than two decades. (WSJ)

Exxon Mobil and Chevron banked their second-highest annual profits in a decade last year. (WSJ)

A U.S.-led coalition conducted its third series of major strikes on Houthi rebel targets in an effort to defend shipping lanes in the Red Sea. (WSJ)

Ocean carrier CMA CGM suspended all crossings by its vessels of the Bab al-Mandab Strait in and out of the Red Sea. (Reuters)

Capital Product Partners sold its first containership as it transitions into a pure LNG carrier. (TradeWinds)

Terminal operator DP World reached an agreement with its unionized workers in Australia. (Lloyd’s List)

Walgreens is laying off 145 employees, mostly in its corporate workforce. (Retail Dive)

Amazon is adding a new AI-powered shopping assistant named Rufus to its mobile app. (Axios)

Social-media platform TikTok is testing a feature that could make all posts shoppable. (Business of Fashion)

U.S. authorities indicted nine people in connection with alleged schemes to smuggle Iranian oil. (Financial Times)

A dog was found trapped in a shipping container at the Galveston Bay port complex in Texas. (Fort Worth Star-Telegram)

 

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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