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Dali Probe Targets Earlier Outages; Biden’s Tariffs Roil Supply Chains

By Paul Page

 

The heavily damaged bow of the Dali shown after this week’s controlled demolition aimed at removing the bridge wreckage. PHOTO: KEVIN DIETSCH/GETTY IMAGES

Federal investigators say the Dali containership lost power several times in the hours before the vessel crashed into Baltimore’s Francis Scott Key Bridge. The preliminary report from the National Transportation Safety Board looks closely at the ship’s electrical system, including the actions by the crew as the Dali lost power twice minutes after it left the Port of Baltimore. The WSJ’s Scott Calvert, Costas Paris and Paul Berger write that one blackout about 10 hours before the disaster came after a crew member mistakenly closed an engine exhaust damper, the report said, and a second outage was related to insufficient fuel pressure for a generator. The findings provide the most detailed account so far of the crash that killed six road-crew workers and largely shut down the Port of Baltimore. Now, investigators will try to determine whether the dockside blackouts had an impact on the accident.

  • International Container Terminal Services is building a container terminal in Bauan, Batangas, Philippines, with annual capacity for 2 million boxes. (Philippine Star)
 
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Transportation

Authorities carried out a controlled demolition to free a containership from the wreckage of the Francis Scott Key Bridge on Monday. This WSJ Video shows the charges detonating, collapsing the bridge beams from the Dali and exposing the heavy damage to the vessel.  The Port of Baltimore is expected to reopen most operations after the ship is removed.

 
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Quotable

“The logistics and the details are critical, and the idea is almost secondary.”

— Andrew Segal, an early Fisker investor, on the innovative auto startup now seeking rescue funds.
 

Economy & Trade

China’s Qingdao Port on Tuesday. PHOTO: CFOTO/ZUMA PRESS

President Biden’s decision to sharply increase tariffs on some Chinese goods and extend levies on others will trigger new evaluations of trans-Pacific supply chains. The president raised tariffs on China-manufactured electric vehicles to roughly 100%, boosted tariffs on steel and aluminum products, doubled the levy on semiconductors and added a new duty of 25% on shipping cranes. The WSJ’s Andrew Duehren and Andrew Restuccia report the White House moves also effectively make Trump administration tariffs a permanent feature of U.S. trade relations with China. Under Biden, the U.S. has been spending billions to build up domestic manufacturing capacity for electric vehicles, semiconductors and other industries. But as the Chinese economy has slumped, officials there doubled down on production in the same industries the U.S. was targeting. Biden administration officials fear Chinese output will push down prices globally, undercutting U.S. companies and putting the Biden administration’s subsidies to waste.

  • Trade groups derided President Biden’s move to raise tariffs on imports from China, saying the duties will increase costs in supply chains and lead to higher prices for consumers. (WSJ) 
 

Number of the Day

2,148,571

International shipping containers moving in North American intermodal truck-rail services in the first quarter, 18% more than the same quarter last year and 2.8% ahead of the fourth quarter of 2023, according to the Intermodal Association of North America.

 

In Other News

The index of U.S. producer prices rose a more-than-expected 0.5% in April. (MarketWatch)

Sales at the wholesale level in Canada fell 1.1% in March. (Dow Jones Newswires)

Alibaba’s net profit tumbled 86% last quarter despite rising e-commerce sales and a 30% gain in logistics revenue. (WSJ)

Uber Technologies acquired Delivery Hero’s Taiwanese food delivery business for $950 million and will take a stake in the German company. (WSJ)

Retailer Home Depot’s comparable-store sales in the U.S. declined 3.2% in the quarter ending April 28. (WSJ)

Federal regulators are looking into Alphabet-owned Waymo following 22 reported incidents involving the unit’s automated-driving system. (WSJ)

Truck drivers at a logistics unit of Canadian National Railway ratified a four-year labor agreement. (WSJ)

Apple supplier Foxconn’s first-quarter profit of $679 million came in well below expectations. (South China Morning Post)

Surging container freight rates are fueling strong gains in shipping companies’ shares. (MarketWatch)

Linerlytica estimates factory production of shipping containers will more than double this year from 2023. (The Loadstar)

Tanker and bulk-ship operator Navios Maritime’s $71.5 million profit last quarter was its best ever for the first three months of the year. (TradeWinds)

A consortium of Japanese companies and a British utility are seeking to develop a biomass-fueled bulk ship. (Splash 247)

U.S. truck-safety regulators are easing requirements for under-21 drivers in an interstate pilot program. (Commercial Carrier Journal)

European Union countries approved a law requiring that most new heavy-duty trucks sold in the EU from 2040 be emissions-free. (Reuters)

New York City plans to develop a stretch of the Brooklyn coastline into a port. (Bloomberg)

 

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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