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LogisticsLogistics

Retailers Face Unhappy Returns; Seafood Supply Chain Under Fire

By Paul Page

 

An Amazon returns kiosk inside a Whole Foods grocery store. PHOTO: PAUL PAGE/THE WALL STREET JOURNAL

Those new fees charging consumers for returning online purchases might be too effective. Logistics company Happy Returns found that about half of the companies that it surveyed say the tactic has worked as intended by slowing the flow of goods coming back into their warehouses. The WSJ Logistics Report’s Liz Young writes that a third of companies also say they have lost customers since they began charging consumers fees to return items that they purchased online. That suggests merchants are seeing a backlash, as their cut reverse logistics expenses also hit them with a cost in the checkout line. The questions surrounding returns are crucial for retailers heading into Christmas since the seasonal surge in sales usually leads to burst in returns, effectively extending the peak parcel shipping period into January. Retailers last year expected nearly 18% of merchandise sold during the holidays to be returned.

  • United Parcel Service is acquiring reverse logistics company Happy Returns from PayPal. (WSJ)
 
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Quotable

“We’ve had no shortage of challenges this year.”

— Boeing CEO Dave Calhoun, on the jet maker’s $1.64 billion third-quarter loss and lowered delivery goals.
 

Government & Regulation

A seafood market in China’s Shandong Province. PHOTO: WANG HAIBIN/ZUMA PRESS

The focus on forced labor in China’s Xinjiang region is shifting to the seafood industry. U.S. lawmakers say the Biden administration should crack down on China’s use of forced labor in seafood production after an investigative journalism group found widespread transfers of laborers from the country’s Xinjiang region to processing facilities elsewhere in the country. The WSJ’s Richard Vanderford reports that Rep. Chris Smith (R., N.J.) and Sen. Jeff Merkley (D., Ore.) want the administration to block imports from facilities that violate a U.S. law targeting forced labor linked to Xinjiang. China is the world’s largest seafood producer, with production estimated at 67.5 million metric tons in 2022. The lawmakers cited investigations by The Outlaw Ocean Project, which reported allegations of widespread transfer of forced laborers from Xinjiang to seafood-processing facilities in other parts of China. The pressure comes amid an unprecedented focus on businesses’ supply chain links to China.

 

Number of the Day

$608

Revenue per intermodal unit, excluding fuel charges, at Norfolk Southern in the third quarter, a 15% decline from last year's third quarter and down 4.9% from the second quarter.

 

In Other News

Sales of newly-built homes in the U.S. surged in September to the highest level since February 2022. (MarketWatch)

The United Auto Workers union is close to securing a tentative labor contract with Ford amid a strike now in its sixth week at Detroit automakers. (WSJ)

Hurricane Otis rammed into Mexico’s Pacific port and popular beach resort of Acapulco as a Category 5 storm. (WSJ)

An in-flight incident involving an off-duty Alaska Airlines pilot revives a debate over how to assess and treat airline pilots’ mental health. (WSJ)

Toyota Chairman Akio Toyoda says “people are finally seeing reality” about the challenges for electric vehicles. (WSJ)

The U.S. Senate confirmed Mike Whitaker to head the Federal Aviation Administration. (WSJ) 

More than two-thirds of Amazon U.S. warehouse workers in a survey reported they took unpaid time off to recover from job-related pain or exhaustion. (Bloomberg)

Australia is doubling its financing to develop its critical-minerals supply chain to about $1.26 billion. (Nikkei Asia)

Third-quarter profit at Old Dominion Freight Line fell 10.1% to $339.3 million on a 5.5% drop in overall revenue. (Winston-Salem Journal)

Norfolk Southern’s operating revenue fell 11% to $3 billion in the third quarter. (Dow Jones Newswires)

Rail equipment supplier Wabtec raised its full-year outlook after third-quarter sales jumped 22.5%. (Railway Age)

Kuehne + Nagel’s third-quarter earnings fell by more than half to about $358 million as the freight forwarder's revenue tumbled 46%. (The Loadstar)

Performance Shipping rejected a tender offer from Greek shipping magnate George Economou. (TradeWinds)

Less than half of warehouse and logistics executives in a survey say automation is necessary over the next five years. (Modern Materials Handling)

 

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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