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Transport Network Conflicts; Burning Wood Chips; Truck Stop Showdown

By Paul Page

 

An existing span over the Hackensack River is a swing bridge that malfunctions so often that authorities limit the openings. PHOTO: JULIO CORTEZ/ASSOCIATED PRESS

The intertwining web of transportation networks in the New York City area is set to push hundreds more trucks onto the region’s crowded roads. The impact comes as New Jersey works to complete a new $2.1 billion rail bridge across the Hackensack River that’s aimed at smoothing connections into the city for commuters and Amtrak workers. The WSJ Logistics Report’s Paul Berger writes the Portal North Bridge also looks set to send hundreds of sewage-filled trucks onto local roads because the area’s lone commercial river operator won’t be able to navigate under the site. The conflict highlights the Gordian knot of transport networks that has made the region a difficult and expensive puzzle for cargo operators. In this case, that will mean diverting 1.2 million gallons of sludge from a barge onto tanker trucks. Shipping veterans blame the river’s half-dozen movable bridges for choking off traffic on the waterway.

 
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Commodities

CarbonScape heats wood chips to create biochar, which is milled and converted to a raw form of graphite. PHOTO: CARBONSCAPE

A New Zealand entrepreneur is betting a very big pile of wood chips that he can help break China’s dominance in electric-vehicle battery supply chains. Ivan Williams and his company, CarbonScape, are testing production of a form of synthetic graphite from wood chips that he says is as pure as the material made in China from fossil fuels that is a key material in lithium-ion batteries. The WSJ’s Rhiannon Hoyle reports the effort puts CarbonScape on the front-line of efforts by developed countries to reduce their reliance on China and forge new supply chains for the transition to electric vehicles. Graphite has been designated a critical mineral by the U.S. and the European Union, where officials hope to encourage more mined production locally. China refines nearly all of the very pure graphite used in lithium-ion batteries. The country tightened export controls on graphite in October, roiling metals markets.

  • Auto dealers across many parts of the U.S. say electric vehicles are becoming too hard a sell for buyers worried about range, reliability and price. (WSJ)
 
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Quotable

“We want to change and evolve, but we can’t agree to go out of business doing it.”

— Aaron Steed, owner of Meathead Movers, a moving company charged with age discrimination for trumpeting its hiring of young, chiseled student athletes
 

Transportation

A Pilot Flying J truck stop in Breezewood, Pa. PHOTO:  CHIP SOMODEVILLA/GETTY IMAGES

There’s big money at stake in a national network of truck stops. Pilot Travel Centers mogul Jimmy Haslam and Warren Buffett are in a battle over a seemingly obscure accounting method that could add up to tussle over $1.2 billion. The WSJ’s Jonathan Weil reports that Pilot and Buffett’s Berkshire Hathaway are duking it out in court over the proper accounting method for reporting PTC’s earnings. That will determine how much Berkshire could pay to the Haslam family’s company to buy the 20% of PTC it doesn’t yet own. Pilot claims that Berkshire took steps to make PTC look less profitable over the short term, potentially cutting any deal’s value by as much as $1.2 billion. Berkshire counters that Haslam tried bribing employees into inflating PTC’s earnings so that Pilot would get paid more. Experts say the case illustrates the difficulty of crafting incentives in complex corporate structures.

  • Boeing is elevating Stephanie Pope to become its No. 2 executive, setting her up as the heir apparent to Chief Executive David Calhoun as the plane maker prepares for its next leadership transition. (WSJ)
  • Pennsylvania is considering various plans to add truck parking capacity in the freight-heavy state. (Williamsport Sun-Gazette)
 

Number of the Day

$2.60

Average price per kilo for airfreight transport worldwide the week ending Dec. 3, up 7.9% since the first week of November and up 13.5% over the past three months, according to WorldACD

 

In Other News

U.S. employers added 199,000 jobs in November and the unemployment rate fell to 3.7%. (WSJ)

Warehouse and storage employment has contracted by 72,200 jobs since the start of the year. (Dow Jones Newswires)

Producer prices in China fell in November at an accelerating pace. (WSJ)

A measure of U.S. consumer confidence rose sharply this month. (WSJ)

The Global Port Tracker projects U.S. container imports will grow at a double-digit annual pace in November and December. (Dow Jones Newswires)

Honeywell International is buying Carrier Global’s security business in a roughly $5 billion deal. (WSJ)

Iron ore prices are surging this year on growing Chinese steel production. (Financial Times)

India added onions to the growing list of food staples hit with export restrictions. (Bloomberg)

Asia-Europe spot container rates are inching upward as carriers apply more general price increases. (The Loadstar)

Germany is toughening oversight of foreign investment in the country’s ports. (ShippingWatch)

Australia plans to build a container terminal in Perth as the Port of Fremantle nears capacity. (TradeWinds)

Bulk operator Oldendorff Carriers is installing rotor sails on one of its coal vessels. (Maritime Executive)

Cathay Pacific ordered six Airbus A350 freighters as the airline solidified its longhaul fleet plans. (Air Cargo News)

Industrial distributor Fastenal’s November sales increased 3.8% on strong growth to heavy manufacturing customers. (Modern Distribution Management)

Several logistics operators endorsed an effort to raise the standard minimum temperature​ for refrigerated food transport. (DC Velocity)

 

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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