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LogisticsLogistics

Railroads’ Staffing Dilemma; Scoping Out Emissions; E-Commerce Upstarts

By Paul Page

 

A Union Pacific siding area in Arizona. PHOTO: DAVID BOE/ASSOCIATED PRESS

Falling freight volumes are testing the staffing strategies at U.S. railroads that were struggling to hire workers not too long ago. Union Pacific recently broke ranks with rival operators by furloughing more than 100 rail-yard workers, the WSJ’s Esther Fung reports, drawing the ire of federal regulators and highlighting the balance railroads are trying to strike as they seek to maintain staffing levels while responding to shifts in the economy. The head of the Federal Railroad Administration tied the recent furloughs to high rates of defects in freight cars and locomotives at one yard, a charge that Union Pacific denies. Norfolk Southern and CSX say they don’t plan to furlough workers the way they would during previous downturns. But weak volumes have prompted railroads to slow their hiring. A 17-month streak of gains in train and engine workers ended in July, but picked up again in August.

  • Rail equipment supplier Greenbrier reported record quarterly orders for railcars. (Railway Age)
 
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Sustainability

Trucks in line at the Port of Los Angeles in June. PHOTO: ETIENNE LAURENT/EPA-EFE/SHUTTERSTOCK

The pressure on companies to measure and disclose greenhouse-gas emissions deep in their supply chains is growing. California and the European Union are both poised to approve rules that require companies that do business there to sharply expand their reporting. The WSJ’s Paul Kiernan and Christine Mai-Duc report that the rules will be among the biggest changes in corporate disclosures in decades, adding climate information to the financial data that companies must produce and making clear whether they are reducing emissions in line with their commitments. The rules in Europe are currently under review. California Gov. Gavin Newsom says he plans to sign a bill with his state’s rules into law in coming days. The regulations would require companies to report on Scope 3 emissions—that is, from both their suppliers and customers. That has shipping companies concerned about reporting demands on transportation operations that reach across businesses.

  • The new California emissions regulations could subject around 5,300 businesses to the new reporting requirements. (WSJ)
 
 
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Quotable

“You want to increase the pay but cut the hours. It just opens the door for automation.”

— Stellantis assembly plant worker Demond Clayton, on the potential impact of UAW demands on job security.
 

E-Commerce

Amazon hasn’t taken steps to match the prices on Temu despite the shopping platform’s growing popularity. PHOTO: STEPHANIE KEITH/BLOOMBERG NEWS

The head-spinning growth of shopping platforms Temu and Shein has Amazon trying to figure out how to respond. The e-commerce juggernaut has contended with challenges from rivals such as Walmart and Target for years. Now, the WSJ’s Sebastian Herrera and Shen Lu report that Temu and Shein are coming after Amazon’s business from a different direction, with bargain-priced goods that take longer to arrive. Amazon so far hasn’t sought to match the prices of items on Temu. Shein recently opened a marketplace for U.S. customers, creating a channel for independent merchants to sell products through its site. Thousands of Amazon sellers have joined the new platform, including dozens that are based in the U.S. In the meantime, the new entrants have gained customers in the U.S. as other players such as Amazon, Target, eBay and furniture seller Wayfair are seeing their market share stagnate or decrease.

 

Number of the Day

2.88 Million

Containerized U.S. seaborne imports in August, up nearly 14% from July but 12% below last year’s level, in the 13th straight annual decline, according to S&P Global Market Intelligence.

 

In Other News

Sales of previously owned homes in the U.S. fell in August to the slowest pace since January. (WSJ)

New unemployment claims in the U.S. fell to an eight-month low. (MarketWatch)

The index of leading economic indicators fell in August for the 17th straight month. (MarketWatch)

The United Auto Workers union is calling for reduced reliance on temporary workers at the Detroit automakers and a faster path to full-time status. (WSJ)

Novo Nordisk found bacteria in batches of the main ingredient at a North Carolina plant for the Rybelsus diabetes pill. (WSJ)

Two prototype U.S. military drone ships arrived in Japan for their first deployment in the western Pacific. (WSJ)

India’s exports to the U.S. have surged in recent years as China’s volumes have lagged. (Times of India)

Indonesia's ambition to use its vast nickel wealth to build an electric vehicle battery industry is hitting major obstacles. (Nikkei Asia)

Rates for very large crude carriers from the Middle East to China nearly doubled in a single day. (TradeWinds)

A South Korean private-equity firm is buying bulk carrier Polaris Shipping, with container line HMM adding a minority investment. (Korea Economic Daily)

Cushman & Wakefield says manufacturers looking to reshore their production face a tight U.S. market for industrial properties. (DC Velocity)

 

Executive Insights

Here is our weekly roundup of stories from across WSJ Pro that we think you'll find useful. They are unlocked for WSJ subscribers.

  • “The worst thing we can do is something that would cause our core Hispanic consumers to say, ‘That’s not my Modelo,’” said Greg Gallagher, Modelo Especial’s vice president overseeing brand marketing on its strategy that helped overtake Bud Light in U.S. sales. 
  • The bid to free private-equity managers from regulatory oversight may not be a long shot.
  • Thanks to disaster relief offered by the IRS, companies in California have been allowed to put off this year’s federal tax payments until October. It’s helped plump some balance sheets.
  • Small-time crypto traders who invested with Celsius Network have been going toe-to-toe with legal and financial heavyweights in the platform’s bankruptcy case—and notching some unlikely victories.
 

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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