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Progress in Port Talks; IKEA’s Big Delivery; Transport’s Warning Signals
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Ship-to-shore gantry cranes at the Long Beach Container Terminal at the Port of Long Beach, Calif. PHOTO: DAMIAN DOVARGANES/ASSOCIATED PRESS
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There are finally signs of significant progress in the long-running West Coast port labor talks. The dockworkers union says it has reached a tentative agreement with employers on “certain key issues,” and the WSJ Logistics Report’s Paul Berger writes that the deal concerns terms for automation at cargo terminals. Details haven’t been disclosed, but automation has been a critical fault line in the negotiations to replace a multiyear contract that expired last year. The International Longshore and Warehouse Union is against any expansion of existing automation, arguing it would cost jobs without helping efficiency, while shipping companies and terminal operators want to build on existing
robotics operations. An agreement on the issue would leave wages as the major dividing line. A broader deal may still be far off, but any movement will ease shipper concerns that the talks aren’t going anywhere after nearly a year of negotiations.
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Cargo throughput at South Carolina's Port of Charleston fell to a two-year low as loaded container imports dropped 29.1%. (Post & Courier)
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Terminal operator PSA International bought Turkish logistics company Alisan Logistics. (Splash 247)
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The warehouse at an IKEA store in Brooklyn, N.Y. PHOTO: MICHAEL M. SANTIAGO/GETTY IMAGES
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IKEA is making a big bet on the American market. The furniture retailer will spend the equivalent of about $2.19 billion to open 17 new locations in the U.S. over the next three years, the WSJ’s Trefor Moss reports, and to bolster its fulfillment network across new and existing sites. The plan includes eight of its signature big-box stores and nine smaller “plan and order points” to boost its reach with consumers. IKEA will also modernize existing stores to increase capacity for parcel deliveries directly from the sites, pushing the company more deeply into a growing trend for retailers. The company’s outline doesn’t describe plans for new distribution centers, but the expansion on top of 51 existing stores
and two plan and order sites will bulk up IKEA’s supply chain across North America. It already ranks as the seventh-largest U.S. importer by ocean container volume, according to Descartes Datamyne.
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J.B. Hunt is seeing "a challenging freight environment." PHOTO: MARK REINSTEIN/ZUMA PRESS
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Transportation stocks are sending troubling signals about the U.S. economy. The Dow Jones Transportation Average has underperformed the Dow Jones Industrial Average by about 6.9 percentage points since early February, the WSJ’s Vicky Ge Huang reports, and freight bellwethers Norfolk Southern and J.B. Hunt Transport Services have helped drag down the measure with declines of at least 8.5% over the period. That suggests clouds on the horizon because transportation traditionally sees a selloff heading into economic downturns when demand for goods, materials and travel wanes. J.B. Hunt’s profit and revenue declined more than expected last quarter amid what the company termed a
“freight recession.” J.B. Hunt President Shelley Simpson says the company faces “a challenging freight environment” right now, with shipping prices falling and costs rising. Union Pacific’s muted earnings report adds to the concerns, although more recent industry-wide traffic figures suggest some rail markets are growing.
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Sales of previously owned homes in the U.S. fell 2.4% from February to March and were off 22% from last year. (WSJ)
A measure of business activity in the Philadelphia region fell deeper into contraction. (MarketWatch)
Treasury Secretary Janet Yellen says protecting national security would be the U.S. priority in its relationship with China, even if that slows economic growth. (WSJ)
Contract chip maker Taiwan Semiconductor Manufacturing says revenue may fall as much as 16% in the second quarter. (WSJ)
Rio Tinto’s iron ore shipments from Australia’s Pilbara region soared 16% in the first quarter. (WSJ)
A plan to turn a Port of Oakland terminal into a baseball park collapsed with the Oakland A’s agreement to leave the city for Las Vegas. (WSJ)
Moody's Analytics says nearly seven in 10 companies are increasing investments in supplier risk management. (Supply Chain Quarterly)
Ontario, Canada-based apparel manufacturer Fine Cotton Factory is expanding capacity and product lines in a bet on nearshoring trends. (Sourcing Journal)
Bankrupt retailer David’s Bridal owes about $27.5 million to vendors and other creditors. (Retail Dive)
Volvo says its orders for heavy-duty trucks increased 32% in the first quarter. (Bloomberg)
Autonomous driving company TuSimple says it is taking steps to resolve its risks in the U.S. (South China Morning Post)
Supply-chain software provider Descartes Systems bought Australian last-mile technology platform Localz. (Dow Jones Newswires)
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Each week, we share insightful selections from WSJ Pro for your reading. The stories are unlocked for Journal subscribers.
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Rising rates and volatility in the banking industry are paving the way for a golden age in private debt.
Managers of private-credit and debt funds say they are ready to step in to fill the gaps opened by a pullback in leveraged loans from banks, in some cases by clubbing together on debt packages. What’s more, private-credit firms see an opportunity to secure investments at more attractive terms for themselves, and they have plenty of dry powder to back those deals.
In a special report, we explore the ever-expanding world of private credit, opportunities for distressed debt and how the environment shapes the market for collateralized-loan obligations. And, we bring you a list of the new rulers of private credit.
Read the special report here.
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