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AI Seeks a Path Into Supply Chains; Raising Hopes on U.S.-China Trade

By Paul Page

 

Logistics companies say customer support in areas such as tracking and booking is a natural application for generative AI. PHOTO: JUSTIN SULLIVAN/GETTY IMAGES

Logistics companies are testing the capabilities of the latest artificial-intelligence technology in their operations but so far are finding limitations. Executives say they’re intrigued by the potential cost savings and efficiency of the ChatGPT-like tools known as generative AI, but the WSJ Logistics Report’s Liz Young writes that they’re taking it slow when it comes to incorporating the kind of chatbots that are becoming a growing part of the consumer scene. The gap marks the fault line between the industrial and the consumer sectors, and executives say they have to make sure they won’t frustrate customers with millions of dollars’ worth of goods moving through supply chains. That makes the stakes particularly high for a technology that’s still in its early stages. For operators testing the technology, generative AI could add new momentum to efforts to digitize tasks such as tracking shipments, managing inventory and declaring imports.

 
CONTENT FROM: Cathay Pacific Airways
Cathay Cargo is using innovation to stay ahead of the curve.

With unprecedented travel restrictions, supply chain disruptions and rising fuel prices, it's no secret that aviation has had a tough few years. In this conversation with Tom Owen, learn how one of the world's busiest cargo airlines is leveraging technology to produce leading solutions and navigate these turbulent times.

Discover More

 

Economy & Trade

U.S. Commerce Secretary Gina Raimondo (center) at Boeing's hangar at Shanghai Pudong International Airport. PHOTO: ANDY WONG/POOL/SHUTTERSTOCK

New economic and commercial dialogue across the Pacific is offering some hope to U.S. companies that are facing increasingly hostile business conditions in China. Commerce Secretary Gina Raimondo is promising some results from the new engagement with Beijing in the coming months. But the WSJ’s Yuka Hayashi, Liza Lin and Chun Han Wong report that American businesses say they remain deeply concerned about the impact of growing geopolitical tensions. The site of Raimondo’s press conference in China, Boeing’s hangar at the Shanghai Pudong International Airport, was a reminder of the difficulties that U.S. companies face. Chinese airlines resumed flights with the Boeing 737 MAX in January, but simmering U.S.-China trade tensions have limited deliveries to a handful of other Boeing aircraft in recent years and all but halted new orders. Some in U.S. business circles said a commitment to talk might be incremental, given the tense political relations.

  • Candidates for the 2024 Republican presidential nod are pushing for more protectionist trade policies, especially toward China, in a break from free-trade principles of the past. (WSJ)
  • New research shows that although many manufacturers are shifting production from China, factories in sites including Vietnam and Mexico are sourcing more parts from China. (New York Times)
 
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Quotable

“What Russia is doing is running an opaque, improvised supply chain.”

— A senior official in Washington, on Moscow’s production of drones in defiance of Western sanctions.
 

Number of the Day

1867

The Baltic Exchange Air Freight Index for average airfreight rates in major markets for the week ending Aug. 28, down 1.8% from the week before and 45.9% below the year-ago level.

 

In Other News

Florida began assessing damage to small towns from Hurricane Idalia as the storm crossed the state’s panhandle and moved through Georgia. (WSJ)

Georgia’s Port of Savannah expects to reopen today after shutting down on the approach of Hurricane Idalia (Dow Jones newswires)

U.S. imports by value increased 1.9% from June to July but were down 5.3% compared to July 2022. (MarketWatch)

Revised figures show the U.S. economy grew at a slower 2.1% annual pace in the second quarter than earlier estimated. (MarketWatch)

Auto-parts supplier Denso is rushing to get in position for electric vehicles while key customer Toyota remains cautious on the new technology. (WSJ)

General Motors paused production of its pickup trucks at three North American plants due to parts shortages. (Automotive Logistics)

Toyota expects to build a record 10.2 million vehicles this year as supply chain constraints ease. (Nikkei Asia)

BMW is building an electric-vehicle battery plant in Leipzig, Germany. (InsideEVs)

Stockpiles of orange juice at top global exporter Brazil have reached the lowest level in 12 years. (Bloomberg)

South Korea eliminated Hapag-Lloyd from a shortlist of bidders for container line HMM. (Korea JoonAng Daily)

Alphaliner says average operating margins at container lines fell into the single digits in the second quarter for the first time in three years. (Splash 247)

CMA CGM is preparing a $1 billion order for new methanol-fueled containerships. (TradeWinds)

Container volumes at China’s Cosco Shipping fell 8.6% in the first half of the year. (Journal of Commerce) 

U.S. trucking regulators are considering overhauling the system used to determine if a carrier is unfit to operate. (Trucking Dive)

First-half profit at Hong Kong-based forwarder Kerry Logistics fell 85% to $48 million. (Stat Times)

 

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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