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Picking Up Warehouse Robots; Omicron Hits Factories; Cars Charging Ahead

By Paul Page

 

Automated picking systems from Nimble Robotics help fill orders at Puma North America's warehouse in Torrance, Calif. PHOTO: NIMBLE ROBOTICS

The warehouse robots are starting to evolve. More robots that can pick up separate objects are moving into distribution operations, the WSJ Logistics Report’s Jennifer Smith writes, as increasingly robust technology helps push automation deeper into labor-strapped fulfillment centers. The ability to pick up various kinds of objects has long been a target for robot makers but machines so far haven’t been able to match a human being’s ability to perform that fundamental task. Experts say the developing technology isn't replacing human workers anytime soon. But advances using computer vision and machine learning have some companies expanding their role on warehouse floors. Athletic apparel maker Puma is using robotic arms to pick orders at one U.S. site and is adding them at another. Such operations remain a niche in logistics, even as the surge in e-commerce along with the difficulty in finding workers has galvanized interest in automation.

 
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Manufacturing

The manufacturing floor at Boston Centerless in Woburn, Mass. PHOTO: JARED CHARNEY FOR THE WALL STREET JOURNAL

The Covid-19 Omicron variant’s rapid spread is starting to hit U.S. factory floors. Mounting absences among Covid-infected workers are slowing operations and stretching manufacturing staff. The WSJ’s Bob Tita and Austen Hufford report the impact is leading some companies to consider unconventional, and sometimes expensive, solutions to maintain production. That includes efforts such as shuttling available workers to jobs and plants where they are most needed along with escalating recruiting efforts in a tight job market. The Omicron’s spread comes as demand is booming for manufactured goods from automobiles to medical equipment. Manufacturers say that idling production now isn’t an option. The surge in Covid-19 absenteeism threatens to deepen supply-chain and transportation bottlenecks just as broad indicators have shown some improvement in deliveries. Rich Specialty Trailers in Topeka, Ind., recently sent its own employees to pick up supplies because finding truck drivers has become more difficult recently.

 
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Quotable

“There’s a new world coming.”

— Carlos Tavares, CEO of auto maker Stellantis, on electric vehicles.
 

Transportation

Ford plans to double production for its forthcoming electric truck, the F-150 Lightning. PHOTO: REBECCA COOK/REUTERS

The competition over electric cars is due to reach automotive dealer lots over the coming year. Detroit’s Big Three auto makers are ramping up production, the WSJ’s Ben Foldy and Nora Eckert report, and getting ready to release a barrage of new battery-powered models this year and next that they expect will transform the industry. The arrival of these EVs shifts the pressure on car companies from developing them to convincing consumers to buy them. It also means companies will have to prove they can scale up supply chains for vehicles that differ sharply from long-established diesel models. That could also affect the developing business of producing heavy-duty trucks, which will have to compete with car makers for raw materials. Electric-vehicle sales rose 88% year-over-year in 2021, but still only account for about 3.2% of the total U.S. car market.

 
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Number of the Day

1,585,345

Intermodal containers and truck trailers carried by U.S. railroads in December 2021, 8.7% below the level the year before and 0.2% more than they originated in December 2019, according to the Association of American Railroads.

 

In Other News

Volkswagen warned it expects no significant improvement in the global semiconductor shortage this year. (WSJ)

The chief operating officer of electric-vehicle startup Rivian Automotive left the company last month as it was ramping up production. (WSJ)

Intel removed references to the Chinese region of Xinjiang from an open letter the chip maker sent suppliers last month. (WSJ)

Target CEO Brian Cornell says a retail sector long marked by peaks and valleys no longer has an off season. (Minneapolis Star-Tribune)

New coronavirus cases reported in the Chinese cities of Tianjin and Shenzhen are adding pressure to the cities’ port operations. (Lloyd’s List)

Oxford Economics expects Covid-related absenteeism will continue to hamper logistics operations from ports to final-mile delivery. (Dow Jones Newswires)

Maersk Line added four methanol-powered container ships to the eight orders it has with South Korea’s Hyundai Heavy Industries. (Shipping Watch)

The Port of Oakland told container lines seeking berths to wait more than 50 miles offshore under a new safety measure. (Dow Jones Newswires)

Logistics provider Gefco is testing autonomous handling equipment for its vehicle storage operations in France. (Automotive Logistics)

Colliers says available warehouse space in the U.K. is at the lowest level it has ever recorded. (Logistics Manager)

Airbus remained the world’s top commercial airline manufacturer with 611 deliveries last year. (Financial Times)

Philippines Airlines emerged from bankruptcy protection with a new focus on expanding its cargo business. (Air Cargo News)

A fire destroyed a freighter at China’s Hangzhou-Xiaoshan Airport being operated for Alibaba’s logistics affiliate. (The Loadstar)

New U.S. truckload carrier Ascend named former United Parcel Service and Amazon executive Michael McLary as its chief executive. (Dow Jones Newswires)

Missouri-based truckload carrier Christenson Transportation acquired Tennessee-based Sharp Transport. (Commercial Carrier Journal)

Union Pacific will drop its peak-season surcharges in a sign of easing congestion in intermodal networks. (Journal of Commerce)

Indian Railways ran its longest-ever freight train of nearly 2.2 miles. (Mint)

 

About Us

Paul Page is editor of WSJ Logistics Report. Write to him at paul.page@wsj.com.

Follow the WSJ Logistics Report team: @PaulPage, @jensmithWSJ, and @pdberger. and @LydsOneal. Follow the WSJ Logistics Report on Twitter at @WSJLogistics.

 
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