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Logistics Weighs Vaccines; Rivian’s Charged IPO; Mining Emissions Fights

By Paul Page

 

Amazon recently dropped its mask mandate for vaccinated workers. PHOTO: JEREMY M. LANGE for THE WALL STREET JOURNAL

The logistics sector is stepping cautiously around vaccine mandates in the workplace even as business groups fight the federal rules in court. Companies that manage warehouse workers, truck drivers and other employees in supply-chain operations aren't imposing the strict Covid-19 vaccine rules that are spreading to some office jobs. The WSJ Logistics Report’s Lydia O’Neal writes companies including United Parcel Service, Amazon and Penske Logistics are encouraging vaccination while stepping back from full requirements, and freight companies note they’ve been operating at full speed throughout the pandemic. The sector is jumping into the legal fray with a lawsuit led by the American Trucking Associations over the pending federal mandate. The trucking group says any wide requirement could trigger a worker backlash that would undercut already fragile supply chains. With the National Retail Federation, the Food Marketing Institute and other groups backing the action, it’s clear that shippers share that concern.

 
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Transportation

The new all-electric pickup truck by Rivian, the R1T. PHOTO: SPENCER PLATT/GETTY IMAGES

Investors really believe in the future of the electric-vehicle market. Startup Rivian Automotive is walking away with $12 billion from a blockbuster initial public offering, the WSJ’s Ben Foldy writes, as shares rose nearly 30% in their debut and the company’s market value topped $100 billion on a fully diluted basis. That exceeds the market value of several other large auto makers and provides a boost for both the Irvine, Calif.-based startup and other companies looking to bring electric vehicles into the transportation market. E-commerce giant Amazon is in the picture with its own roughly 19% stake in Rivian, which has electric package-delivery vans on its drawing boards. Rivian lost $2 billion in the first half of this year. But the new backing will help it expand manufacturing and the projected launch of an all-electric parcel van by the end of the year could change the financial picture.

 
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Quotable

“The bigger picture is we’re likely to see inflation climb higher. Things are going to get worse before they get better.”

— Kathy Bostjancic, chief U.S. financial economist at Oxford Economics
 

Commodities

An iron ore train near Port Hedland, Australia. PHOTO: IAN WALDIE/BLOOMBERG NEWS

A battle over emissions in the mining sector is unearthing big questions over environmental efforts in supply chains. Global miners including Rio Tinto and BHP Group are facing pressure from activists and some investors to set more ambitious clean-up goals. But the WSJ’s Rhiannon Hoyle reports the companies say they can’t control how customers use their products, and they point to China as the world’s biggest buyer of most mined commodities. The battle is part of the broader tug-of-war between suppliers and buyers over the responsibility for the environmental impact of activities and products. Rio Tinto recently committed to cut emissions from its own operations by 50% this decade, but it stopped short of imposing targets on customers’ pollution. The sector’s biggest fight is over heavy-polluting steelmaking. Miners are working with steelmakers to clean up production, but they say they need the industry to map out a clearer path.

 
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Number of the Day

81

Number of container ships anchored offshore at the ports of Los Angeles and Long Beach on Tuesday, a record, according to the Marine Exchange of Southern California

 

In Other News

U.S. inflation hit a three-decade high in October, advancing 6.2% over the past year and 0.9% from September. (WSJ)

China’s producer prices surged at a record 13.5% pace in October. (WSJ)

U.S. worker initial filings for unemployment insurance fell to a pandemic low of 271,000 claims last week. (WSJ)

U.S. wholesale inventories rose a larger-than-expected 1.4% in September. (MarketWatch)

Demand for fuel as drivers return to the road is pushing ethanol prices close to an all-time high. (WSJ)

Candy maker Hershey is buying two pretzel makers for $1.2 billion. (WSJ)

General Motors, Toyota and Nissan are reversing some production cuts as the semiconductor shortage eases. (Nikkei Asia)

Some U.S. companies wrestling with supply-chain disruption are rethinking how much they should rely on imports. (Marketplace)

Labor costs for U.K. retailers are falling and output is growing as merchants move more business online. (Financial Times)

Nineteen nations agreed at the COP26 climate talks to launch at least six “green-shipping corridors.” (Lloyd’s List)

South Korean container line HMM more than doubled its third-quarter revenue to about $3.4 billion. (ShippingWatch)

Mediterranean Shipping Co. is weighing an order of 18 container ships worth $1.5 billion. (TradeWinds)

Container carrier Wan Hai Lines is pulling ships from congested trans-Pacific services into intra-Asia operations. (The Loadstar)

Australian dockworkers halted job actions at four Patrick Terminals container sites. (Australia Financial Review)

The U.S. Postal Service lost nearly $5 billion in the year ended Sept. 30, as revenue rose 5.3% and package volume increased 3.5%. (Reuters)

Logistics revenue and operating profit at SingPost skyrocketed in the first half of the year because of congested global supply chains. (Singapore Business)

Self-driving truck startup Kodiak Robotics raised $125 million in an oversubscribed Series B funding round. (TechCrunch)

Maersk Drilling is merging with Noble, and the combined business will take the Noble name. (Energy Voice)

Walmart plans to build two large, heavily automated distribution centers in the Dallas-Fort Worth area over the next three years. (Dallas Morning News)

Amazon is building a 630,000-square-foot fulfillment center in Stafford County, Va. (WTOP)

The Giant supermarket chain opened a robot-heavy e-commerce fulfillment center in Philadelphia. (Supermarket News)

Florida-based DMT Trucking acquired Broken Bow, Okla.-based flatbed operator Daryl Thomason Trucking. (Commercial Carrier Journal)

Gartner named Cleveland Clinic as the top operating U.S. healthcare supply chain. (DC Velocity)

Cannabis shippers are using increasingly sophisticated tailored packaging for their products. (Modern Materials Handling)

 

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

 
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