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Ammonia Coming Clean; Buying Into Stores; Steel's Unbending Challenge

By Paul Page

 

Construction is under way on dehydration and compression equipment to prepare carbon dioxide for sequestration at CF Industries in Donaldsonville, La. PHOTO: KATHLEEN FLYNN FOR THE WALL STREET JOURNAL

Fertilizer companies, and the ammonia they make for their products, are taking a leading role in the global energy transition toward low-carbon fuels. Proponents say ammonia is one of the easiest alternative fuels to ramp up, the WSJ’s Phred Dvorak reports, and that it could eventually help drive electric generators, power cargo ships or even prove useful in making jet fuel. There are still obstacles to overcome before that happens. But fertilizer companies, which make much of the ammonia that is traded around the world, are positioning themselves for a budding clean-energy market and to negotiate supply deals. Ammonia can burn like pure hydrogen—with no carbon emissions—and is much easier to store and ship. But it isn’t yet made or traded at the volumes needed to start replacing fossil fuels, and companies are still figuring out how many new factories, tankers and terminals they might need.

  • A Virgin Atlantic jet became the first to complete a trans-Atlantic flight entirely on a blend of cooking oils, animal fat and other sustainable fuel. (Financial Times)
  • Shipowner Seaspan says it has received strong interest from liner companies in an ammonia-powered ship it has designed with partners. (Seatrade Maritime)
  • South Korea’s Hanwha Ocean won a $500 million order to build four very large ammonia carriers for shipping company Naftomar. (MarineLink)
 
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Supply Chain Strategies

Buybuy Baby stores were closed after Bed Bath & Beyond filed for bankruptcy this past spring. PHOTO: RICHARD B. LEVINE/ZUMA PRESS

Say hello again to Buybuy Baby. The former unit of bankrupt retailer Bed Bath & Beyond recently reopened 11 stores and has ambitious plans to open more than 100 new U.S. outlets over the next three years. The WSJ’s Kate King reports the store reopenings are the latest sign that retailers view bricks-and-mortar locations as critical for bringing in customers and boosting sales. Coresight Research says retailers are on track to open more than 1,000 new net stores in the U.S. this year. That’s left retail real estate relatively resilient this year, thanks largely to a sharp drop in retail construction during the pandemic. Even digital merchants have been signing bricks-and-mortar leases while many traditional retailers are putting their stores to work as fulfillment centers. CBRE says retail space availability in the U.S. fell to 4.8% in the third quarter, the lowest level in at least 18 years.

 
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Quotable

“Nobody’s going to make a significant investment in teaching the world about bourbon until we know these tariffs have been eliminated.”

— Cedar Ridge Distillery CEO Jeff Quint, on Europe’s retaliatory tariffs on U.S. spirits
 

Manufacturing

The Cybertruck has an angular profile and a stainless-steel exterior meant to be tough enough to withstand bullets. PHOTO: MIKE BLAKE/REUTERS

Sometimes the most fateful decision in a manufacturing supply chain is the choice of production material. Just look at Tesla and its troubled launch of its Cybertruck pickup. The automaker sought to break from convention by cladding its electric pickup in ultrahard stainless steel, a material that doesn’t need to be painted, resists dents and adds to the vehicle’s distinctive look. The WSJ’s Rebecca Elliott reports the metal has proven challenging to bend and manipulate, adding to Tesla’s manufacturing hurdles leading up to the rollout of its first new passenger model in more than three years. Assembly line headaches have contributed to the delays and cost overruns. Stainless steel is rarely used for vehicle bodies, in part because it is generally less malleable and more expensive than traditional materials. It is also relatively heavy, particularly compared to aluminum, which some automakers have embraced in recent years.

  • Nissan will build three gigafactory plants for electric-vehicle batteries to support its auto production in Sunderland, U.K. (Automotive Logistics)
  • Auto parts supplier ZF Group will spend $500 million to expand a South Carolina facility that delivers to a nearby BMW plant. (Supply Chain Dive)
 

Number of the Day

2259

The Baltic Freight Index at the start of this week, up 7.5% from last week and the highest level for the measure of dry-bulk shipping rates since June 2022

 

In Other News

A measure of U.S. consumer confidence edged up this month from a 15-month low. (MarketWatch)

A shortage of new houses for sale in the U.S. helped send home prices to a new record high. (WSJ)

Panama’s top court issued a ruling that jeopardizes the future of one of the world’s largest copper mines. (WSJ)

Cold storage giant Lineage Logistics plans an initial public stock offering that would value the business at more than $30 billion. (Bloomberg)

The Department of Transportation created an office dedicated to multimodal freight transport. (Progressive Railroading)

Apple supplier Foxconn is expected to expand production of iPhones in India with a new $1.54 billion plant. (Nikkei Asia)

Maersk Line joined several other ship operators in diverting Israel-linked vessels from a high-risk lane in the Middle East. (Lloyd’s List)

Norway’s Stolt Tankers is rerouting its 166 vessels away from the “unreliable” Panama Canal to Suez Canal routes. (TradeWinds)

A federal regulatory judge dismissed a shipper’s complaint that container line HMM failed to honor capacity commitments. (Journal of Commerce)

Maersk Line sold its minority stake in car carrier Höegh Autoliners. (The Loadstar)

Atlas Air is bulking up its 777 fleet with orders for two more of the Boeing freighters. (Simple Flying)

Freight forwarder Kuehne + Nagel International acquired Canadian customs broker Farrow. (DC Velocity)

New Jersey lawmakers plan to consider measures to curb warehouse development amid growing public criticism of the projects. (NJ Spotlight News)

U.K. retailer the Range opened a 1.2 million-square-foot distribution center in Suffolk. (Logistics Manager)

The number of collapsed British trucking companies has more than doubled over the past two years to a record 463 businesses. (Motor Transport)

 

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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