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Extending Shipping Queues; Europe’s Amazon Scrutiny; Boeing’s Delays
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Container ships at the Port of Los Angeles last month. PHOTO: TIM RUE/BLOOMBERG NEWS
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Today's newsletter was written by WSJ Logistics Report's Jennifer Smith.
The line to unload cargo at Southern California’s port complex is moving further offshore. Maritime officials are spacing vessels waiting for berths at the logjammed ports of Los Angeles and Long Beach further apart, sending some boxships hundreds or even thousands of miles out in the Pacific to guard against hazards from crowding too close in rough winter weather. Moving part of the queue out of sight hasn’t trimmed the overall backlog, the WSJ Logistics Report’s Paul Berger writes. This week some 30 vessels were waiting within 40 miles of the port complex, with another 66 anchored further off or approaching at reduced speeds. The new system reduces crowding, which can be dangerous during high winds. It’s
also aimed at reducing pollution. Ships burn less fuel when they slow down, and moving vessels offshore limits exposure to coastal neighborhoods that have complained about emissions from ships and trucks.
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Boeing 787 jets nearing completion at the company's production plant in Everett, Wash., in 2013. PHOTO: ELAINE THOMPSON/ASSOCIATED PRESS
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Production delays at Boeing are reaching deeper into the business of the manufacturer’s customers and suppliers. American Airlines is slashing its summer flight schedule, the WSJ’s Andrew Tangel reports, as the latest hitch in output of 787 Dreamliner jets gums up the carrier’s plans for a pandemic rebound. Deliveries of Boeing’s wide-body jets now won’t resume until April at earliest. That’s led American to scale back planned flights to Shanghai and Beijing and cut service to Hong Kong. American’s decision is the latest scheduling move in passenger operations that will echo across the cargo sector, signaling continued limitations in the belly capacity that has contracted during the pandemic.
Boeing’s production issues are rippling through aviation supply chains. Italian aerospace manufacturer Leonardo plans to furlough some workers who make Dreamliner fuselage sections while jet-engine maker Rolls-Royce says the delivery freeze is clouding its cash flow.
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PHOTO: MAURO UJETTO/ZUMA PRESS
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Amazon is getting more unwanted attention in Europe as the online giant’s business practices draw criticism at home and abroad. Italy’s antitrust regulator fined Amazon $1.3 billion for allegedly favoring third-party sellers that use its warehousing and delivery services, the WSJ’s Eric Sylvers and Sam Schechner report, and the European Union’s top competition enforcer is pursuing a similar investigation. Third-party sales are increasingly important to Amazon’s business. The company’s treatment of those vendors has drawn scrutiny for practices that include using sellers' own data to develop competing products. Some U.S. vendors complain that Amazon charges too much for fulfillment. Italian regulators found Amazon used its market dominance to favor adoption of its logistics services, with “fulfillment by Amazon” sellers more likely to appear as the default when consumers click to buy a product. Amazon says most sellers don’t use those services and called the fine “unjustified and disproportionate.”
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2.21 Million
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Projected container imports, measured in 20-foot equivalent units, into major U.S. ports in November, equal to October and up 5.1% from November 2020, according to the Global Port Tracker.
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New U.S. unemployment claims fell to a 52-year low of 184,000 in the past week. (WSJ)
China’s producer prices rose 12.9% in November, ebbing from a 26-year high the month before. (WSJ)
U.S. wholesale inventories climbed 2.3% in October. (MarketWatch)
Legislation in Europe could require companies such as Uber and Amazon-backed Deliveroo to classify their gig-economy drivers as employees. (WSJ)
Tyson Foods plans to spend about $1.3 billion to automate parts of its production lines over the next three years. (WSJ)
Union Pacific, General Electric and other large employers suspended Covid-19 vaccine requirements after a judge blocked the Biden administration’s planned mandate for federal contractors. (WSJ)
Costco said shipping snarls could delay some toy shipments until after Christmas. (WSJ)
Supply chain disruptions are cutting into the production of critical medical devices. (New York Times)
Toyota shut down production lines at two assembly plants in Japan because of supply chain problems at home and overseas. (Nikkei Asia)
A Chinese automotive industry group says the worst of the sector’s semiconductor shortage is over. (Caixin Global)
Hooker Furnishings says supply-chain issues including late deliveries from Asia drove the company to a third-quarter loss. (Dow Jones Newswires)
Vessel owner Costamare ordered eight new mid-sized container ships and is adding several secondhand bulk ships. (TradeWinds)
Freight technology firm Xeneta and Compass Financial Technologies are starting a daily container freight rate index. (Lloyd’s List)
Commodities trader Trafigura aims to reduce greenhouse gas emissions from its fleet by 25% by 2030. (ShippingWatch)
On-demand manufacturing provider Xometry bought sourcing and supplier selection specialist Thomas in a $300 million deal. (Plastics Today)
Supply-chain finance group Tradeshift secured more than $200 million in funding and debt from new and existing investors. (Reuters)
Walmart is adding a nearly 1 million-square-foot, highly-automated fulfillment center outside Nashville, Tenn. (Supermarket News)
Freight forwarder Hellman Worldwide Logistics is seeking to recover from a cyberattack that hit its operations. (Air Cargo News)
An October cyberattack on a Wisconsin cheese manufacturer contributed to the cream cheese shortage afflicting bagel shops and bakeries. (Bloomberg)
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