Trouble viewing this email?  View in web browser ›

The Wall Street Journal. The Wall Street Journal.
LogisticsLogistics

Desperately Seeking Commodities; Branded Supply Chains; Taxing Fuel

By Paul Page

 

A Nutrien potash warehouse near Saskatoon, Saskatchewan. PHOTO: NAYAN STHANKIYA/REUTERS

The cutoff in commodities from Russia is changing the global map for sourcing raw materials. Brazil is beating a path to Canada to fill its fertilizer gap, Argentina is hearing from buyers of wheat and sunflower oil and countries are pleading with Australia for more nickel and copper. The WSJ’s Jacquie McNish and Vipal Monga report that Canada, with its reserves of key energy, food and minerals, is one of the big beneficiaries in the shakeup of global trade flows. The country shares similar climate and geographical features with Russia, and it produces many of the same commodities, including crude oil, uranium, nickel and potash. The country faces infrastructure constraints in reaching global markets, however. Overstretched railway and port networks have little additional capacity to ferry more commodities. Canada is a big exporter of wheat and canola, but crop contracts are scarce after a drought last year.

 

Here are recent developments following Russia’s invasion of Ukraine:

Ukraine proposed maintaining neutral status with international security guarantees to end the war as Russia continued deadly strikes. (WSJ)

U.S. diesel exports are surging as buyers in Europe and Latin America vie to replace Russian supplies. (Bloomberg)

Johnson & Johnson has suspended sales of personal-care products in Russia. (WSJ)

Aluminum-can maker Ball plans to sell its three manufacturing plants in Russia. (WSJ)

For the latest updates from Russia and Ukraine, click here.

 
Advertisement
LEAVE THIS BOX EMPTY
 

Supply Chain Strategies

A Kroger distribution center in Louisville, Ky. PHOTO: LUKE SHARRETT/BLOOMBERG NEWS

Competition in supermarkets is becoming a battle between supply chains. U.S. consumers faced with rising prices and gaps on shelves are shrugging aside brand loyalty like never before. The WSJ’s Jaewon Kang writes the trend could shift balances of power within grocery stores, as big food companies risk losing market share to competitors and store brands that are better able to fill in empty spots in store aisles. Supermarket executives are finding relationships with suppliers already changing, with stores gaining leverage with major brands and the flexibility to test new products. Market research firm IRI says brands with low in-stock rates have been losing so-called share of wallet, a measure of brand loyalty, with consumers simply less willing to wait for their preferred brands to stock up. Supplier J.M. Smucker says that’s an opportunity for products that it’s able to get to stores more consistently than competitors.

 

Quotable

“Any point of leverage we can find with those bigger brands helps.”

— Mark Griffin, president of B&R Stores, on filling gaps on store shelves
 
Share this email with a friend.
Forward ›
Forwarded this email by a friend?
Sign Up Here ›
 

Government & Regulation

A BP station near Covington, Ga., on Sunday. PHOTO: CURTIS COMPTON/ASSOCIATED PRESS

Road builders and infrastructure backers are growing alarmed at efforts around the U.S. to slash state and federal gas taxes. Groups including the U.S. Chamber of Commerce are warning Congress that the cuts could jeopardize much-needed road and bridge improvements, the WSJ’s Julie Bykowicz reports, including projects to be funded by last year’s $1 trillion infrastructure law. The lobbying battle marks the fault lines between two major policy priorities that are favored by voters. With gasoline and diesel prices at record levels, however, lawmakers are anxious to give consumers relief from the shock at the pump in an election year through measures such as a gas-tax holiday. Those taxes fund maintenance and construction of highways and bridges, infrastructure that the U.S. Chamber says benefits businesses. Coalitions of groups say the gas-tax decreases don’t necessarily flow to consumers since they won’t prevent retailers from raising base prices.

 
Advertisement
LEAVE THIS BOX EMPTY
 

Number of the Day

$8.54

Price per kilogram for airfreight transport from China to the U.S. the week ending March 28, up 22% since March 7, according to the TAC Index.

 

In Other News

Available jobs in the U.S. fell slightly for the second straight month in February. (WSJ)

A measure of U.S. consumer confidence rose in March for the first time this year. (MarketWatch)

Currencies in Latin America are defying broader trends and gaining strength against the dollar. (WSJ)

United Parcel Service is expanding its 2019 deal with Google Cloud as the carrier rolls out new data initiatives. (WSJ)

Retail energy company Volunteer Energy Services filed for chapter 11 and intends to wind down its business after defaulting on payments to suppliers. (WSJ)

More than 1,800 flights at Shanghai’s two airports have been canceled since Covid-19 lockdowns began. (Air Cargo World)

Finnish cargo handling equipment manufacturers Konecranes and Cargotec canceled their planned merger after U.K. authorities blocked the agreement. (Container News)

Chinese pork processor WH Group is considering acquiring more companies​ in Europe to diversify its income sources. (Nikkei Asia)

U.K. authorities detained a second P&O Ferries vessel over safety issues. (BBC)

China’s Citic Financial ordered 10 medium-size ultramax bulk carriers from Dalian Shipbuilding. (Splash 247)

DHL will add freighter capacity from Cargojet under an agreement that includes the potential for DHL to buy a stake in the Canadian carrier. (Air Cargo News)

Daimler Truck North America named Carsten Kirchholtes general manager of procurement and supply chain management. (Automotive Logistics)

San Francisco-based e-commerce logistics services startup Airhouse raised $11 million in a Series A funding round. (TechCrunch)

Marshalls owner TJX is building a 2 million-square-foot distribution center for the department store in East El Paso, Texas. (El Paso 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, @pdberger. and @LydsOneal. 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