Today's Top Supply Chain and Logistics News From WSJ
March 24 2017 - 6:48AM
Dow Jones News
By Paul Page
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Apple Inc. could start running a new iPhone supply chain through
India within the next six weeks. Government officials expect the
electronics giant to start assembly at a plant in Bangalore run by
Taiwanese contract manufacturer Wistron Corp., the WSJ's Rajesh Roy
and Newley Purnell report. It's part of Apple's effort to build up
its role in the deeply fragmented Indian market, where smartphone
sales are big but where buyers tilt heavily toward cheaper devices.
Apple is displaying new flexibility in its famously rigorous
electronics supply chain as sales growth is slowing in its big
markets, including China. The new operation will likely grow in
coming months. Apple is negotiating to bring component
manufacturers to India to make parts and export finished phones,
potentially giving the country a new place in global technology
supply chains.
Brazilian meat exports are grinding to a halt amid a corruption
scandal. Brazil's top meat producers are being hit hard as several
countries including China and Chile close their doors to shipments,
the WSJ's Paulo Trevisani and Luciana Magalhães report, while the
country's officials rush to convince buyers that oversight is sound
and the meat is good. The rapid shutdown of a major Brazilian
export business highlights the fragile nature of the distribution
channels for perishable goods -- and the big role that certificates
and sanitation standards have in providing the confidence to move
food around the world. For Brazil, meat exports plummeted abruptly
as allegations broke that inspectors had allowed tainted meat to
reach domestic and export markets. Brazil is trying to get
countries to lift their bars, but economists fear the crisis could
have lasting consequences on a sector that has been a rare bright
spot in a troubled economy.
Amazon.com Inc. is getting a big break in a tax dispute with the
Internal Revenue Service. The U.S. Tax Court handed the online
retailer a victory in a more than $1.5 billion dispute over
Amazon's transactions with a Luxembourg subsidiary, the WSJ's
Richard Rubin and Laura Stevens report. The case involved
transactions that happened in 2005 and 2006, and the dispute
involves a crucial tactic Amazon has used to lower its tax bill as
the company has expanded internationally. In this case, the idea
was to transfer U.S. assets, such as software, trademarks and
customer lists, to Amazon's European headquarters in Luxembourg
"and to have the vast bulk of the income from Amazon's European
businesses taxed in Luxembourg at a very low rate." The company
isn't out of the woods: European regulators are examining whether
its European tax deals amounted to illegal "state aid" from
Luxembourg to gain an unfair advantage over rivals.
TRANSPORTATION
One of the world's largest shipbuilders is about to get much
smaller. The $2.6 billion rescue package from Daewoo Shipbuilding
& Marine Engineering Co.'s South Korean state-run creditors
includes calls for steep cutbacks at the troubled business, the
WSJ's In-Soo Nam reports. Daewoo's third bailout is the result of a
glut of vessels and low freight rates that has put many shipyards
in financial trouble. A slowdown in China has made things worse for
the world's three biggest shipyards, which are all in South Korea.
The Korean Development Bank says the new aid will come with big
strings attached, including a "rigorous restructuring" with job
losses and the sale of unprofitable operations. That's a major
step: shipping analysts say Daewoo used earlier bailouts to keep
operations running with few changes in hopes of a business
turnaround that never appeared.
QUOTABLE
IN OTHER NEWS
President Donald Trump met with trucking executives and drivers
as he sought to rally support for efforts to replace the Affordable
Care Act, which he said had "inflicted great pain on American
truckers." (WSJ)
U.S. new home sales increased sharply for the second consecutive
month in February. (WSJ)
The number of Americans applying for initial jobless benefits
rose at a strong pace in the past week. (WSJ)
The eurozone's economy grew at the fastest pace in six years in
the first quarter, according to surveys of purchasing managers.
(WSJ)
Workers at a BHP Billiton Ltd. mine in Chile will end a strike
at the world's biggest copper operation this weekend. (WSJ)
Nike Inc. plans to increase efforts to bypass store owners by
using apps and membership programs to reach consumers directly.
(WSJ)
Sears Holdings Corp. suppliers are as reducing shipments and
asking for tougher payment terms as concerns grow over the
retailer's viability. (Reuters)
Amazon has agreed in principle to buy Dubai-based internet
retailer Souq.com. (Financial Times)
European regulators put off a ruling on Maersk Line's takeover
of Hamburg Sud as the carrier offered concessions on some shipping
routes. (Port Technology)
Software giant SAP SE will work with British financial
technology firm Everledger Ltd. to build blockchain capabilities
into its business network. (Coindesk)
British trucker Eddie Stobart Logistics plans to raise $163
million in a public stock listing aimed at funding acquisitions.
(Motor Transport)
Indian technology-focused truck brokerage Blackbuck closed a $70
million funding round that includes e-commerce company Flipkart.
(TechCrunch)
Teva Pharmaceutical Industries Ltd., the world's biggest
producer of generic drugs, plans to cut about 11% of its global
workforce. (Bloomberg)
German logistics operator Rhenus Group raised its stake in Arkon
Shipping to back a fleet expansion at the regional shipping
operator. (The Loadstar)
Coyote Logistics, the freight broker owned by United Parcel
Service Inc., is expanding intra-Mexico operations with an office
in Guadalajara. (Air Cargo World)
Amazon is planning its fourth distribution site in the
Jacksonville, Fla., area. (Florida Times-Union)
ABOUT US
Paul Page is deputy editor of WSJ Logistics Report. Follow him
at @PaulPage, and follow the entire WSJ Logistics Report team:
@brianjbaskin, @jensmithWSJ and @EEPhillips_WSJ and follow the WSJ
Logistics Report on Twitter at @WSJLogistics.
Subscribe to this email newsletter by clicking here:
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Write to Paul Page at paul.page@wsj.com
(END) Dow Jones Newswires
March 24, 2017 06:33 ET (10:33 GMT)
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