Today's Top Supply Chain and Logistics News From WSJ
June 06 2017 - 07:24AM
Dow Jones News
By Brian Baskin
Sign up:With one click, get this newsletter delivered to your
inbox.
If you're a trucker, Big Brother may be watching. Many trucks
are now equipped with dashboard cameras, and more fleets are
installing apps that prevent drivers' phones from being used when
vehicles are in motion, the WSJ's Leslie Scism writes. Trucking
companies are increasingly adopting safety measures that monitor
driver behavior as they face soaring insurance premiums and
multi-million-dollar accident settlements. Facing mounting payouts,
insurers are hiking premiums by up to 30% a year, and some large
carriers, including American International Group Inc., have ended
certain types of coverage. Technology can help reduce accident
rates and clear drivers who aren't at fault, and plenty of fleets
are willing to eat those costs if the alternative is being dropped
by their insurer. But cameras don't address some of the bigger
forces pushing up accident rates, including improving economic
conditions putting more vehicles on the road, and high turnover
that can lead to inexperienced drivers taking the wheel.
A trucking rebound would mean a windfall for investors in the
companies that make big rigs. Too bad the biggest truck
manufacturer is buried within a conglomerate whose shares rise and
fall for countless other reasons, the WSJ's Stephen Wilmot writes.
The dominant Freightliner brand is a subsidiary of Daimler, which
is falling out of favor on Wall Street over concerns about flagging
car sales. Meanwhile shares of Volvo, which makes Mack trucks in
North America but separated from its namesake automobile brand in
1999, are soaring. Some shareholders would welcome a Daimler Trucks
spinoff, though that would require a change in Germany's
conservative corporate culture. Evercore ISI, a brokerage, pegs the
odds of such a move at 30% in the next 12 to 18 months, and at 50%
for Volkswagen AG, which owns trucking brands Scania and MAN, plus
a stake in U.S. truck maker Navistar International. Investors would
have to look to the world of luxury autos for a model of how a
spinoff might work: Ferrari's stock has almost doubled since it was
separated from Fiat Chrysler last year.
A diplomatic dispute between Qatar and its neighbors is forcing
a hasty redrawing of air freight routes. Saudi Arabia, the United
Arab Emirates, Bahrain and Egypt cut diplomatic and commercial ties
- including air and marine transport links - with Qatar, accusing
the emirate of backing terrorism. That's complicated operations for
Qatar Airways, which has risen to become a top global airline on
the back of a steady stream of travelers and cargo to and from
Egypt and Saudi Arabia, the WSJ's Nicolas Parasie and Robert Wall
write. Qatar Airways planes will need to burn more fuel if they're
cut off from the U.A.E.'s airspace, reducing the country's utility
as a waypoint for long-haul flights. The effort to isolate Qatar
could backfire for the Gulf States, however, by introducing
uncertainty into a region valued for its stability and interwoven
economies. There were signs air cargo demand was already slowing,
with year-to-date growth of 8%, compared with a five-year average
pace of 11%, according to the International Air Transport
Association.
INFRASTRUCTURE
President Donald Trump's first major infrastructure proposal
faces a rocky path through Congress. Mr. Trump said he will push to
privatize air-traffic control in an event intended to kick off his
campaign for an expected $1 trillion infrastructure package. The
administration has indicated it wants to pay for new roads, bridges
and other projects almost entirely via private financing, a goal
experts say will be difficult, if not impossible to achieve, the
WSJ's Ted Mann and Michael C. Bender write. Privatizing air-traffic
control would be a key test. Some aviation experts have long
supported this change, saying it would make the system more nimble
and cost-effective to run. But some lawmakers want to keep the
government involved, including Republican legislators representing
rural areas that could see service reductions. The Senate
overwhelmingly rejected a privatization bill just last year, and
it's not clear whether Mr. Trump's support will lead to a different
result in 2017.
QUOTABLE
IN OTHER NEWS
CSX Corp. shareholders approved an $84 million pay package to
CEO Hunter Harrison. (WSJ)
J. Crew Chief Executive Mickey Drexler will step down and be
replaced by a former West Elm executive. (WSJ)
U.S. worker productivity was flat in the first quarter.
(WSJ)
The average size of new houses fell last year, a sign of rising
demand among first-time buyers. (WSJ)
The U.S. and Mexico neared an agreement to avert a trade war
over Mexican sugar exports. (WSJ)
Vertical farming, where vegetables are grown in shipping
containers, is on the rise in New York. (WSJ)
A major Japanese trucking company is i ntroducing four-day
workweeks - at full pay - to lure drivers. (Nikkei)
U.S. West Coast ports are receiving twice as many megaships as
they did at the start of the year. (Port Technology)
Old Dominion Freight Line Inc. tonnage grew 5.8% in May from a
year earlier. (DC Velocity)
Hapag-Lloyd will levy penalties on shippers that cancel bookings
at certain ports. (Journal of Commerce)
Rickmers is working on a new restructuring plan after filing for
bankruptcy on Friday. (Splash 24/7)
CSX is ending operations at an Avon, Ind. maintenance facility
as part of its company-wide efficiency drive. (WTHR)
ABOUT US
Brian Baskin is editor of WSJ Logistics Report. Follow him at
@brianjbaskin, and follow the entire WSJ Logistics Report team:
@PaulPage , @jensmithWSJ and @EEPhillips_WSJ. Follow the WSJ
Logistics Report on Twitter at @WSJLogistics.
Write to Brian Baskin at brian.baskin@wsj.com
(END) Dow Jones Newswires
June 06, 2017 07:09 ET (11:09 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
American (NYSE:AIG)
Historical Stock Chart
From Feb 2024 to Mar 2024
American (NYSE:AIG)
Historical Stock Chart
From Mar 2023 to Mar 2024