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LogisticsLogistics

Mining Goes Driverless; Resetting Chicken Supplies; Europe Seeks Chips

By Paul Page

 

Autonomous trucks at the Gudai-Darri mine in Western Australia. PHOTO: RHIANNON HOYLE/WSJ

Rio Tinto is running into an unusual problem as it rolls out more automation in a remote corner of western Australia. The mining giant can’t find enough workers to help run its most technologically advanced mine. The WSJ’s Rhiannon Hoyle writes that the mining sector’s drive toward automation could even be worsening a labor shortage across operations. Mining companies that used to rely on machinery operators and laborers now need to compete for workers with expertise in data analysis and artificial intelligence. The drive toward robotic equipment “hasn’t led to the doomsday scenario of mass layoffs,” says one expert, but has created new jobs. Truck drivers and drill operators are being supplanted by autonomous fleet operators and systems engineers. Job openings in mining are climbing and companies are spending more to recruit and retain workers in a field not usually associated with technology advances.

 
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Supply Chain Strategies

Outside a Tyson Foods plant in Perry, Iowa. PHOTO: CHARLIE NEIBERGALL, AP

Tyson Foods is trying to repair the supply chain in its signature chicken business. The largest U.S. chicken supplier has committed millions of dollars to expand production, the WSJ’s Patrick Thomas reports, after struggling for years to meet demand and turn a consistent profit in its poultry operations. The problems preceded the pandemic but have grown as upheaval in demand and distribution patterns have strained operations. Tyson’s challenges have played out across its sprawling operations, from problems at hatcheries to short-handed processing lines, undercutting the supplier’s ability to consistently fill growing customer orders. The recovery plan includes $1.3 billion in investment in automation across production lines, along with plans to cut $1 billion in costs by 2024. Market conditions are working in Tyson’s favor. Demand from grocery stores and restaurants remains strong and meat prices are rising, providing a financial cushion amid the internal changes.

 

Quotable

“We’re sitting here today with the capacity to produce 47 million chickens. We’re not producing 47 million chickens.”

— Tyson CEO Donnie King
 
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Supply Chain Strategies

A GlobalFoundries plant in New York. PHOTO: GABBY JONES FOR THE WALL STREET JOURNAL

Two of the world’s largest chip makers are opening a European front in the competition to remake global semiconductor supply chains. New York-based GlobalFoundries and European multinational STMicroelectronics plan to team up to build a semiconductor factory in France, the WSJ’s Stu Woo reports, leaning on government subsidies in the global race to strengthen control over technological supplies. The manufacturers would jointly operate the site, which would draw some $5.7 billion in total backing. The chip makers and the French government say the plan supports the European Union’s ambition of becoming less dependent on overseas suppliers for critical technologies. GlobalFoundries is becoming a growing force in the semiconductor race. The semiconductor maker has opened a site in Singapore and its footprint is expanding as the U.S., China and European countries strengthen their domestic chip-making abilities.

 
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Number of the Day

5.99 Million

Commodity carloads hauled by U.S. railroads in the first six months of 2022, down 0.1% from last year and 8.5% below the same period in 2019, according to the Association of American Railroads.

 

In Other News

Efforts to overhaul global tax rules are hitting fresh delays. (WSJ)

The Nord Stream pipeline that channels Russian natural gas to Europe shut down for a scheduled maintenance, stoking fears the Kremlin could end supplies. (WSJ)

Abbott Laboratories reopened its biggest factory after a shutdown that dealt another blow to efforts to replenish a U.S. baby formula shortage. (WSJ)

Blue Yonder named Duncan Angove chief executive as owner Panasonic weighs a potential public stock listing for its retail technology business. (WSJ)

FTI Consulting projects U.S. online retail sales will grow 11.7% this year to nearly $1.1 trillion. (MarketWatch)

Exchange operator CME Group is rolling out a new lumber futures contract aimed at boosting trade in two-by-four derivatives. (WSJ)

Frontier says it needs more time to garner shareholder support for its bid to merge with Spirit Airlines. (WSJ)

Japanese farming and construction equipment maker Kubota will build factories in the U.S. and India as it seeks to shift production overseas. (Nikkei Asia)

Ganfeng Lithium is buying Argentina-focused mining group Lithea as China steps up its battle for the metals needed to power electric vehicles. (Financial Times)

Rivian Automotive is planning hundreds of layoffs that could amount to 5% of its workforce. (Bloomberg)

Growth in U.S. apparel imports slowed slightly to 21.6% in May. (Sourcing Journal)

Retailer American Eagle believes the logistics operations it acquired could one day be bigger than its clothing business. (Business of Fashion)

VesselsValue says the number of new ship orders has dived by more than a third in the first half of the year. (ShippingWatch)

Frontline and Euronav agreed on a share-purchase deal that brings the tanker operators closer to merging. (TradeWinds)

Mediterranean Shipping Co.’s terminal subsidiary took over two container terminals at France’s Le Havre port. (The Loadstar)

Heavy rains and floods in New South Wales are restricting coal exports from Australia’s Newcastle port. (Lloyd’s List)

Canada-based trucker TFI International bought Quebec-based Transport St-Amour. (Today’s Trucking)

The U.K.’s Menzies Distribution says it is open to more acquisitions after profit jumped sharply during 2021. (Motor Transport)

 

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.

 
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