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LogisticsLogistics

Bracing for Railroad Votes; Trucking’s Charging Gap; Picking Up Robots

By Paul Page

 

A BNSF rail yard in Kansas City, Kan. PHOTO: CHARLIE RIEDEL/ASSOCIATED PRESS

U.S. railroads and their shipping customers face a crucial question over labor relations in the bedrock sector of the American freight economy. Two of the country’s largest railroad unions are to reveal today whether their members have accepted a wage deal brokered by the White House. The WSJ’s Esther Fung reports a rejection would move major freight railroads closer to a strike that could disrupt the flow of goods around the country. The unions representing engineers and conductors are the final two of the 12 unions reporting the ratification votes in the contentious and protracted labor dispute. If they don’t ratify the pact, the big unions will go back to the bargaining table with a Dec. 4 deadline looming for a possible strike. Congress could also intervene to head off a strike that the industry says could cost the U.S. economy $2 billion a day.

 
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Transportation

A heavy-duty charging station built by Prologis for warehousing and distribution specialist Performance Team at Santa Fe Springs, Calif. PHOTO: PERFORMANCE TEAM

Truckers say California’s ambitious plan for electric big rigs doesn’t match the state’s infrastructure. State regulators want to phase out older trucks operating in California’s extensive business shuttling sea containers from ports to inland depots. The WSJ Logistics Report’s Paul Berger writes that would require some 157,000 charging stations to serve the thousands of heavy-duty vehicles that operate in the pivotal leg of U.S. supply chains. That charging infrastructure barely exists today, and the environmental requirements and electrical grid demands behind the power sources suggest the state has an uphill climb to fill the gap. The conflict highlights the challenges that other states will face as they try to push heavily polluting freight operations toward clean fuels. California regulators say the phase-out plan is aimed at creating a market for the charging infrastructure, with hopes that private industry will plug into the plan.

 
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Quotable

“I’m not canceling Christmas. I’m not the Grinch. But we’re cautious regarding the amount of volume that may be there.”

— Richard House, CEO of online retailer FlexShopper
 

Logistics Technology

Amazon's Sparrow picking-and-packing robot. PHOTO: AMAZON

Amazon is hoping its latest warehouse robot can help the company get a better grip on online fulfillment. The company is testing a yellow-plated mechanical arm that marks its latest effort to have robots take on picking and packing operations at the heart of distribution centers. The WSJ Logistics Report’s Liz Young writes the task of handling a wide variety of objects has been a kind of Holy Grail for automation developers that are trying to get robots to mimic the behavior of human workers in warehouse settings. Amazon calls its new device Sparrow and recently demonstrated how the arm uses suction-capped extensions to manipulate objects ranging from plastic jars to DVD cases. That could provide a big productivity boost across the company’s sprawling logistics operations. But the scale of Amazon’s business also suggests there is little margin for mistakes in the company’s sprawling logistics network.

 
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Number of the Day

41,693

Combined loaded container exports from the ports of Seattle and Tacoma in October, in 20-foot equivalent units, a 28.5% decline from October 2021 and the 17th straight annual decline.

 

In Other News

U.S. existing home sales fell in October for a ninth straight month. (WSJ)

The Conference Board’s index of leading economic indicators contracted in October for the eighth straight month. (MarketWatch)

Officials at United Nations climate talks agreed to set up a fund to pay for climate-related damage in vulnerable countries. (WSJ)

China’s contracting retail sales signal problems for global companies that have pinned growth hopes on a more free-spending Chinese customer. (WSJ)

Gap’s sales edged higher last quarter as the apparel retailer reported a 12% increase in inventory over last year. (WSJ)

Foot Locker raised its annual outlook after posting better-than-expected third-quarter results. (WSJ)

Japan’s Nidec plans a $715 million plant in Mexico to build electric-vehicle components. (Nikkei Asia)

Spot prices for bulk shipping’s big capesize vessels plummeted more than 27% last week. (TradeWinds)

Maersk Line and Mediterranean Shipping suspended a joint service from Asia to the U.S. East Coast. (Journal of Commerce)

South Korea promised state shipping lines state support if plummeting freight rates​ hit financial results. (The Loadstar)

Abu Dhabi-based AD Ports acquired Spanish cargo terminal operator Noatum for $660 million. (Splash 247)

U.K. grocers are limiting the number of eggs customers can buy amid supply issues due to an outbreak of avian flu. (BBC)

European logistics operator DFDS says it is on the lookout for acquisitions. (ShippingWatch)

Royal Mail is seeking approval from the U.K. government to drop Saturday deliveries. (Motor Transport)

Pitney Bowes will raise rates for its e-commerce services by an average of 6.5% next year. (Supply Chain Dive)

New York cannabis farmers have massive stockpiles of unsold inventory because licensed dispensaries haven’t opened in the state. (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 Twitter at @WSJLogistics.

 
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