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Amazon’s Prime Safety Scrutiny; Wavering Commodities Outlook

By Paul Page

 

An Amazon worker moves boxes during the Prime Day sale last year. PHOTO: SPENCER PLATT/GETTY IMAGES

Amazon took in billions in sales during its annual Prime Day event, but a new report says its workers end up paying a heavy price. The report, released by Sen. Bernie Sanders (I., Vt.), found that Amazon’s injury rate jumped during Prime Day and the holiday season. The WSJ’s Victoria Albert writes that the report also accuses Amazon of prioritizing speed over safety, saying it pressured employees to work long hours and shirked some safety procedures. The report is the latest effort to target Amazon over what critics say is a grueling work environment that has been built around its rapid logistics expansion. Washington state was set this month to implement rules aimed at improving safety and working conditions in distribution centers, and several other states have approved or are considering similar laws. Amazon says it has made substantial improvements in worker safety in recent years.

  • Adobe Analytics says consumer spending during the recent Prime Day sales event across various e-commerce sites reached $14.2 billion, up 11% from last year. (Modern Retail)
  • Amazon Logistics expanded its ocean forwarding volume by 75% in the first five months of 2024. (Journal of Commerce)
 
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Quotable

“That might sound really simple, but that change is worth a couple million bucks by itself.”

— Todd Wilson. CFO of casual restaurant chain Red Robin, on ordering hamburger patties in 20-pound cases rather than 10-pound cases.
 

Commodities

Coal is unloaded from a bulk ship at a terminal in China’s Jiangsu province. CFOTO/ZUMA PRESS

Commodities producers aren’t giving the dry-bulk shipping sector much to cheer about. Mining major Anglo American just cut its coal-production target after a fire suspended output at a major mine and says its copper output also remains down after falling 6% in the second quarter. The WSJ’s Christian Moess Laursen writes that prices for copper, a key metal for the global transition toward low-carbon energy, have surged this year, hitting an all-time high in May. Bimco recently forecast dry-bulk shipping demand would grow up to 3.5% this year after a strong first quarter. But growth will retrench next year, the shipping analysts say, and shipowners are holding off on ordering ships, in part on concern "about the demand outlook for certain commodities.” Iron ore remains a bright spot. Anglo American’s output is flat but Brazilian miner Vale just affirmed its upbeat outlook and says its production is growing.

  • Indonesia will launch an online tracking system next week for nickel and tin shipments. (Reuters)
  • South Korea sanctioned a Hong Kong shipping firm over allegations of the illegal transfer of North Korean coal. (Splash 247)
 

Number of the Day

2.2%

Decline in the average first-year taking rent, or the negotiated rent that companies end up paying, for new warehouses of at least 1 million square feet in the first half of the year, while overall lease rates for all warehouses rose 7.7%, according to CBRE.

 

In Other News

A massive tech outage forced airlines to ground flights and knocked out operations for emergency services and businesses around the world. (WSJ)

The Federal Reserve reported weakening economic activity across parts of the U.S. (MarketWatch)

Japan’s exports rose 5.4% in June but expansion slowed from the previous month. (WSJ)

Canada’s Labor Minister is leaving his post as the country faces logistics upheaval from a potential strike at its two main railroads. (WSJ)

Ford will spend roughly $3 billion to expand production of its F-series pickup trucks in southern Ontario. (WSJ)

Volvo warned on future automotive sales despite posting record core growth last quarter. (WSJ)

Taiwan Semiconductor Manufacturing raised its sales outlook after second-quarter profit jumped 36%. (WSJ)

Cash-hungry Beyond Meat is talking with bondholders about a potential financial restructuring. (WSJ)

France’s CMA CGM will work with Alphabet's Google to deploy artificial intelligence across is shipping and logistic operations. (gCaptain)

Ocean Network Express is ordering 10 methanol-ready mid-size containerships from Chinese shipyards. (TradeWinds)

India’s Navy rescued nine of 16 seafarers who were missing after an oil tanker capsized off Oman. (Maritime Executive)

Supermarket chain Lidl says it is seeing growing interest from other shippers in using its owned liner business. (ShippingWatch)

Enterprise software provider Aptean acquired Ireland-based warehouse and supply chain technology supplier Principal Logistics Technologies. (Supply Chain Xchange)

Intermodal Association of North America President and CEO Joni Casey is retiring after leading the group for more than 27 years. (Progressive Railroading)

 

Executive Insights

Here is our weekly roundup of stories from across WSJ Pro that we think you'll find useful.

  • AT&T, UnitedHealth Group join a growing list of companies with hacks traced to the absence of one particular security measure: multifactor authentication.
  • JD Vance used his venture career to promote the heartland as a necessary part of the tech entrepreneurial map. But the coasts still rule when it comes to venture funding.
  • Private-equity firms are preparing for next year’s renegotiation of Trump’s 2017 tax bill, aiming to prevent rate increases.
  • The Supreme Court’s rulings on how federal agencies regulate business will inspire new legal battles that could have long-term effects on the marketing industry.
 

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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