Trouble viewing this email?  View in web browser ›

The Wall Street Journal. The Wall Street Journal.
LogisticsLogistics

Walmart Charges Suppliers; Cutting Pacific Tariffs; Airlines Descending

By Paul Page

 

A Walmart distribution center in St. George, Utah, in May. PHOTO: GEORGE FREY/GETTY IMAGES

Walmart is preparing to pass its rising logistics costs on to its suppliers. The retailer says it will charge some of its suppliers a new fee to transport goods to its warehouses and stores, the WSJ’s Sarah Nassauer reports, in a sign of how businesses are looking to offset rising costs for shipping and logistics. A memo from Walmart to some suppliers says companies that use Walmart to transport goods to the retailer’s warehouses and stores will be charged a fuel surcharge and a separate “collect pickup charge” starting Aug. 1. The collect pickup charge will be calculated as a percentage of the cost of the goods that Walmart received. The retailer says it is “adapting to the significant transformation and increased” shipping costs over recent years. Some suppliers say they’ve been blindsided, however, by added charges for order agreements they already had in place with the retailer.

  • Japan’s MUFG Bank is offering to buy corporate excess inventories to ease the pressure on firms’ balance sheets. (Nikkei Asia)
 
Advertisement
LEAVE THIS BOX EMPTY
 

Economy & Trade

The Longtan Container Terminal at China’s Nanjing port last month. PHOTO: CFOTO/ZUMA PRESS

Trans-Pacific trade could get another jolt as soon as this week. President Biden is expected to roll back some tariffs on Chinese imports soon, the WSJ’s Yuka Hayashi reports, as he weighs sharp policy disagreements within his administration and the competing views of businesses. A new plan could include a pause on tariffs on consumer goods such as clothing and school supplies, as well as a new framework to allow importers to request tariff waivers. There are also calls for raising levies on strategic items such as industrial machinery and transportation equipment, while lowering duties on consumer goods. Top U.S. and Chinese officials spoke this week about topics including the more than $350 billion in U.S. tariffs on Chinese imports. Any moves would shift the economics in billions of dollars’ worth of trade as companies are preparing to bring in goods for the fall selling season.

 

Transportation

SAS said the strike would lead it to cancel about 50% of its flights daily. PHOTO: CARSTEN SNEJBJERG/BLOOMBERG NEWS

Global airlines that weathered the pandemic are stumbling in the recovery. Scandinavian airline SAS filed for bankruptcy protection in the U.S., the WSJ’s Benjamin Katz and Sara Ruberg report, in a new sign of increasingly chaotic operations across an aviation sector that is struggling to meet surging demand following more than two years of Covid-19 lockdowns. The final push for SAS came after about 1,000 of its pilots said they would strike over wages. The company was already in financial difficulties, and it’s among many airlines struggling with staff shortages, mounds of lost luggage, delays and canceled flights. Lufthansa and British Airways are among those dropping services. Cargo operations aren’t helping much. Newly restored belly capacity is disappearing again as flights are canceled and ground-handling labor shortfalls are holding up shipments while airport volumes are tumbling and airfreight rates are sliding on reduced demand.

  • Germany’s Frankfurt Airport is capping freighter flights because of a shortage of ground-handling workers. (The Loadstar)
 
Share this email with a friend.
Forward ›
Forwarded this email by a friend?
Sign Up Here ›
 

Economy & Trade

Workers organize goods being loaded in Dubai for transport to Iran. PHOTO: CHRISTOPHER PIKE/REUTERS

Sanctions are supposed to keep most U.S. and European brands from selling in Iran, but you wouldn’t know that from the busy border trade flowing from the United Arab Emirates. A burgeoning gray market is feeding growing volumes of products from Persian Gulf ports like Sharjah to Iran, as Iranian consumers order goods online and have them shipped by intermediaries in the U.A.E. The WSJ’s Benoit Faucon reports a new logistics infrastructure has sprung up on both sides to facilitate the trade, from warehousing and shipping by wood-hulled dhows to distribution and payments. Many Iranian e-commerce websites offer products from Western companies along with Japanese and South Korean goods. These websites take orders in Iran and transfer them to partners in the emirates of Sharjah and Dubai. Emirati companies then purchase these items locally or even order them on Amazon and ship them via dhows to Iran.

  • Jordanian authorities dismissed top officials at the Aqaba port after concluding that negligence contributed to the chlorine leak there that killed 13 people. (Port Technology)
  • Abu Dhabi-based AD Ports is buying Egyptian shipping and terminal business IACC for $140 million. (TradeWinds)
 

Quotable

“We are the Iranian Amazon. Business is booming.”

— The captain of a dhow leaving Sharjah for Iran
 
Advertisement
LEAVE THIS BOX EMPTY
 

Number of the Day

58.4

The Transportation Utilization Index in the June Logistics Managers’ Index report, down 5.9 percentage points from May and the lowest level in the measure of freight transport capacity use in the U.S. in two years.

 

In Other News

Oil prices are retreating from recent highs on growing concerns that an economic slowdown will clip demand. (WSJ)

The euro neared a 20-year low against the dollar amid a broad flight to the U.S. currency around the world. (WSJ)

U.S. factory orders jumped 1.6% in May, largely because of rising prices for petroleum-related products. (MarketWatch)

Accelerating inflation is rippling through Asia-Pacific countries including Australia, South Korea and the Philippines. (WSJ)

Overall sales in the U.S. automotive sector fell 11% in June and were down 8.1% in the first six months of the year. (WSJ)

The Stellantis union in Italy says the semiconductor shortage will cut the auto maker’s output there by some 220,000 vehicles this year. (Reuters)

Car makers had their worst June for sales in the U.K. since 1996. (Bloomberg)

Container xChange says U.S. ports on average have far larger detention and demurrage charges than ports in other countries. (The Loadstar)

Hapag-Lloyd is adding congestion surcharges at two French ports after warning that bottlenecks at European ports are growing. (Maritime Executive)

Shipowners willing to transport Russian crude from Eastern Russia to China are reaping big earnings. (ShippingWatch)

Maersk Line resigned from the International Chamber of Shipping as it seeks more aggressive action on environmental issues. (Lloyd’s List)

An accident involving a Waymo autonomous truck raises questions about whether local authorities and law enforcement are prepared to cope with self-driving tractor-trailers. (TechCrunch)

Royal Mail managers plan to strike this month over proposed job and pay cuts at the U.K. postal operator. (Financial Times)

Amazon will deliver packages in central London through e-bikes and walking rather than delivery vans. (Press Association)

 

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, @bylizyoung and @pdberger. Follow the WSJ Logistics Report on Twitter at @WSJLogistics.

 
Desktop, tablet and mobile. Desktop, tablet and mobile.
Access WSJ‌.com and our mobile apps. Subscribe
Apple app store icon. Google app store icon.
Unsubscribe   |    Newsletters & Alerts   |    Contact Us   |    Privacy Policy   |    Cookie Policy
Dow Jones & Company, Inc. 4300 U.S. Ro‌ute 1 No‌rth Monm‌outh Junc‌tion, N‌J 088‌52
You are currently subscribed as [email address suppressed]. For further assistance, please contact Customer Service at sup‌port@wsj.com or 1-80‌0-JOURNAL.
Copyright 2022 Dow Jones & Company, Inc.   |   All Rights Reserved.
Unsubscribe