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Shipping's Threat to Fashion Week; Boeing Safety Record Hits Turbulence

By Paul Berger

 

A containership near the Suez Canal Bridge. PHOTO: SUEZ CANAL AUTHORITY VIA REUTERS

Global shipping disruptions are looming over spring and summer fashions. Diversions away from the Suez Canal are posing a challenge for the apparel industry where the difference between a seasonal item and a heavy discount is measured in a matter of weeks, the WSJ’s Jinjoo Lee writes in a Heard on the Street column. Ocean carriers are adding a week or two to schedules after sending containerships around the tip of Africa because of attacks on vessels by Houthi rebels in Yemen. The detours are a particular challenge for European fast-fashion retailers such as H&M that rely heavily on ocean shipping for imports, as well as for U.S. retailers like Abercrombie & Fitch that source products from South Asia. The crisis is raising shipping costs, but the real threat for retailers is receiving the clothes too late in the season and having to mark them down.

  • A U.S.-led coalition launched a second major assault against Houthi targets in a continuing bid to stop the rebel group’s attacks on ships transiting the Red Sea. (WSJ)
 
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Number of the Day

691,630

Number of international containers moving in intermodal operations in North America in December, up almost 13% from the same month in 2022, according to the Intermodal Association of North America.

 

Transportation

Boeing was once a byword for airline safety. That reputation is under threat following a series of safety issues including a door plug falling from a Boeing 737 Max 9 plane in flight. A WSJ video report looks at what the accident means for Boeing and whether the company can afford another setback.

 
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Quotable

"We are writing to urge you to take immediate action to strengthen enforcement."

— Leaders of a Congressional committee in a letter urging the Biden administration to do more to stop imports of goods linked to forced labor in China.
 

In Other News

Oil prices reached their highest level in about a month on raised prospects for the economy and energy demand. (MarketWatch)

The Federal Aviation Administration is recommending airlines check a second type of Boeing jet that uses the same kind of door plug that blew out of an Alaska Airlines flight. (WSJ)

Forward Air is moving ahead with its acquisition of freight forwarder Omni Logistics. (WSJ)

Chinese carmaker BYD is moving into the luxury market with a Lamborghini-style electric car. (WSJ)

Sunoco has agreed to buy liquids terminal and pipeline operator NuStar Energy in a transaction valued at about $7.3 billion. (WSJ)

Daikin Industries is bolstering its supply chain for home air conditioners in Africa by adding manufacturing capacity in Nigeria and Algeria. (Nikkei Asia)

Hapag-Lloyd is offering to transport cargo over land through Saudi Arabia to avoid Red Sea attacks. (ShippingWatch)

Hapag-Lloyd is acquiring UK-based trucking company ATL Haulage Contractors. (Journal of Commerce)

Car carrier Wallenius Wilhelmsen landed a $290 million transport deal with a construction machinery company in South Korea. (TradeWinds)

Supermarket chain Giant Eagle plans to open an automated micro-fulfillment center in Pittsburgh to fill curbside pickup orders. (Supply Chain Dive)

 

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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