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The jungle-clad provinces of eastern Congo are becoming some of the most important, and dangerous, sites in the global coffee supply chain. Congo is attracting some of the biggest names in coffee, including a $1 million investment from brewing giant Starbucks Corp., the WSJ's Alexandra Wexler reports, even as a war that's claimed more than five million lives in the past 20 years rages in the shadows of agriculture suppliers. The companies are responding to growing demand for specialty coffee, which accounts for one of every two cups sold in the U.S., encouraging exporters, roasters and retailers to go where the potential is huge -- and so are the risks. The many challenges of doing business in Congo include death threats, extortion and kidnappings, many of which occur near where specialty coffee is grown. Congo's specialty-coffee production has surged to as much as 960 tons a year from almost nothing in 2008, and foreign-based roasters are spending big money to pool farmers, teach them best practices and finance next season's crop. That's bringing some prosperity to the country while testing the limits of supply chains in one of the world's most unstable regions.

Hanjin Shipping Co.'s latest sale may be a matter of survival for the debt-ridden ocean carrier . Hanjin is reaching out to major European shipping companies as it looks for a buyer for at least five of its vessels, the WSJ's Costas Paris reports. The effort is part of the South Korean operator's bid to raise funds to finish unloading stranded cargo, pay off creditors and restructure its operations. The ships are among the biggest that Hanjin owns and are among the remnants of a fleet that has been withering as ship owners reclaim chartered vessels. A South Korean bankruptcy court also plans to dispose of the firm's sales and marketing network for Asia-U.S. routes and some ships. The sales are coming in a tough market where vessel values have been hurt by excess container shipping capacity. But Hanjin executives hope the sales bring enough cash for the company to remake itself into a regional Asian carrier.

Chinese parcel delivery carrier ZTO Express will test the investment world's appetite for e-commerce logistics. The seven-year-old, Shanghai-based company begins its investor road show this week for a planned initial public offering that would sell 72.1 million shares at $16.50 to $18.50 apiece. At the top end of the range, and the WSJ's Alec Macfarlane reports that would bring $1.3 billion and signal confidence in a Chinese e-commerce market that counted $609 billion in online sales last year. ZTO would beat trucker Schneider National Inc. to the market with its planned public offering and break a six-year drought in IPOs in the logistics and cargo transportation arena. With major parcel business for Chinese e-commerce giants Alibaba Group Holding Ltd. and JD.com Inc. and an operating profit margin of 25.1%, the company has big numbers behind its target price.

SUPPLY CHAIN STRATEGIES

Indonesia may have the bigger foothold in the smartphone supply chain it's been looking for. BlackBerry Ltd.'s decision to license software and outsource handset production globally represents a win for Indonesia, which is also the biggest market for the Canadian company's handheld devices. The WSJ's Resty Woro Yuniar reports that Blackberry's pact with an affiliate of the country's biggest wireless carrier will have the Indonesian partner produce, promote and distribute all Blackberry-brand devices in the country. The plan helps Blackberry meet Jakarta's rules for local content and to focus on its plan to focus on software rather than making smartphones. Indonesia has loosened those rules somewhat, and Blackberry's decision suggests other smartphone companies and their critical components makers may find the country a more attractive node in electronics manufacturing and distribution channels.

QUOTABLE

IN OTHER NEWS

The U.S. producer-price index, a gauge of U.S. business pricing, rose 0.3% in September. (WSJ)

The Obama administration took new steps to loosen U.S. sanctions against Cuba and allow for greater trade between the nations. (WSJ)

The U.S. Treasury Department sharply toned down its criticism of China and other Asian exporters in its latest currency report to Congress. (WSJ)

Delta Air Lines Inc. cargo revenue fell 15%, or $29 million, in the third quarter and was off 20% in the first nine months of the year. (WSJ)

Tesla Motors Inc. and Panasonic Inc. are extending their cooperation with an agreement to produce photovoltaic cells and modules in Buffalo, N.Y. (Associated Press)

Japan's government wants the Parliament to ratify the Trans-Pacific Partnership trade agreement quickly to keep the pact alive amid opposition in the U.S. (WSJ)

U.K. auto parts suppliers fear the impact of new tariffs following Brexit may force them to relocate overseas. (Financial Times)

Southern California ports and the U.S. Department of Commerce will work together to study new information technology for ports at the University of Southern California. (Long Beach Press Telegram)

A U.S. coal company is exporting to Asia through a Canadian terminal after failing to gain port access in the U.S. Pacific Northwest. (Associated Press)

Canadian Pacific Railway Ltd. plans to release a "supply chain scorecard" on the railroad's handling of Canada's grain harvest. (Progressive Railroading)

An alliance including the humanitarian Vaccine Alliance and United Parcel Service Inc. began drone delivery of medical supplies in Rwanda. (Lloyd's Loading List)

The city of Seattle, private retailers and parcel carriers are backing a University of Washington study on improving e-commerce order delivery in cities. (Seattle Daily Journal of Commerce)

Indian officials say they are working with Germany on having German companies help improve the country's infrastructure, including improved rail-port connections. (Economic Times)

The Port of Oakland's Trapac LLC cargo terminal plans to double the size of its container handling operation. (East Bay Times)

A survey shows 75% of Americans believe commercial parcel delivery by drone will be a reality within five years. (IoT Daily)

Oil tanker operator Frontline Ltd. canceled an order for four large vessels from South Korean carrier STX Offshore & Shipbuilding. (Splash 24/7)

The U.S. military's logistics effort to provide relief in hurricane-hit Haiti involves tough negotiations to move supplies inland. (Stars and Stripes)

ABOUT US

Paul Page is deputy editor of WSJ Logistics Report. Follow him at @PaulPage, and follow the entire WSJ Logistics Report team: @brianjbaskin, @lorettachao, @RWhelanWSJ and @EEPhillips_WSJ, and follow the WSJ Logistics Report on Twitter at @WSJLogistics.

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Write to Paul Page at paul.page@wsj.com

(END) Dow Jones Newswires

October 17, 2016 06:39 ET (10:39 GMT)

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