By Paul Page
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A new truck-appointment system at the New York Harbor may
determine the future of the congestion-relief strategy at East
Coast ports. The GCT USA container terminal at Bayonne, N.J., is
starting a program to accept reservations for trucks to pick up or
drop off cargo, WSJ Logistics Report's Jennifer Smith writes, in a
bid to reduce backups that stretch from the terminal to nearby
streets. Truck congestion plagues many busy ports, part of the
growing concern over having industrial cargo operations alongside
residential communities. It's expected to get worse as bigger ships
arrive and concentrate cargo handling into tighter time windows.
Some truckers are wary of reservation systems, however, saying they
can complicate operations and prove costly, especially when drivers
miss appointments while tied up on the busy roads around New York
and Newark, N.J. West Coast ports use the systems, but the New
York-area system may prove that if truckers can meet the schedules
there they can make them anywhere.
Vietnam is looking for new trade partnerships as the country
tries to dodge the potential impact of tensions between the U.S.
and China. A meeting this week between Japanese Prime Minister
Shinzo Abe and top Vietnamese leaders followed earlier visits to
Hanoi by leaders of France and India, the WSJ's James Hookway
reports, as Vietnam looks to find deals that keep the country's
recent trade momentum on track. The maneuvering is a sign of how
countries in Asia are adjusting their policies on the fly following
the collapse of the ambitious Trans-Pacific Partnership and
President-elect Donald Trump's promised upheaval in trade
relations. The need for new partners is especially acute for
Vietnam, which has reinvented itself as a trading nation and relies
heavily on the free navigation of the South China Sea. Economists
also held it up as one of the biggest potential beneficiaries of
the TPP, leaving Vietnam as perhaps the biggest loser in the trade
deal's failure unless it can forge new trade and security
relationships.
American consumers splurged to close out 2016, but the spending
wasn't evenly spread around. New figures from the government showed
strong gains in car sales and in online shopping, with overall
sales surging 4.4% in the fourth quarter, but little other good
news for the retail world, the WSJ's Josh Mitchell and Suzanne
Kapner report. A separate report from the National Retail
Federation showed holiday sales rose 4% in November and December.
That's fairly strong growth by historic standards, but there were
clear winners and losers. Spending on furniture rose at a healthy
pace during the holidays, defying recent sales spending away from
hard goods, and online stores had a big quarter. But that shift
continued to wallop brick-and-mortar outlets like Macy's Inc. and
Sears Holdings Corp. In all of 2016, spending rose 11% at online
retailers and fell almost 6% at department stores. The figures show
the retail economy is getting stronger but that companies still are
scrambling to change their supply chains as fast as consumers are
changing buying patterns.
SUPPLY CHAIN STRATEGIES
With e-commerce the clear winner during the holidays, it looks
like online businesses are seeing important gains since the sales
peak ended. Unwanted holiday gifts and lightly worn clothes from
years past are swelling the inventory of fast-growing online
consignment and secondhand clothing retailers, the WSJ's Patrick
McGroarty reports. One business, Swap.com, has filled a sprawling
warehouse outside Chicago with clothing that 200 full-time workers
are unpacking, repricing and preparing for resale. The operation is
part of the field known as reverse logistics that's grown
increasingly significant as online sales have grown more important
in retail trade. Up to 30% of online holiday purchases are
returned, according to the National Retail Federation, compared
with about 10% of holiday purchases overall. And used-apparel
stores estimate about a quarter of their merchandise is shipped in
new, much of it the result of misbegotten online sales.
China may be about to dramatically lower its costs for raw
materials that go into steel and aluminum production. Indonesia
just eased its three-year-old ban on nickel-ore and bauxite
exports, the WSJ's Biman Mukherji reports, a potential boon for
China, which has been hopscotching around Southeast Asia, Australia
and even Africa to find raw minerals to feed its steel mills.
Indonesia had been a key provider to China of nickel, most of which
is used for making stainless steel, and of bauxite, a key
ingredient in aluminum. The decision is the latest sign of
turbulence in the commodities market. Experts had been expecting a
"supply deficit" in the industrial raw materials this year, and now
they're wondering whether the market can absorb the added supply.
The cheaper inputs also add a new wrinkle to China's production of
steel and aluminum that has roiled global industrial markets.
QUOTABLE
IN OTHER NEWS
German car makers scrambled to defend their manufacturing
strategies after President-elect Donald Trump singled out BMW AG
for criticism over its plans for production in Mexico. (WSJ)
A 747-400 freighter owned by Turkey's ACT Airlines crashed into
a village just south of the capital of Kyrgyzstan, killing at least
37 people. (WSJ)
Mr. Trump plans to name real-estate developers and longtime
friends Richard LeFrak and Steven Roth to lead a new council to
monitor federal spending on infrastructure. (WSJ)
Freight broker Neovia Logistics launched a debt restructuring
that would eliminate $117 million bonds set to mature in 2018.
(WSJ)
The British pound took another sharp turn downward against the
dollar ahead of a key speech this week by U.K. Prime Minister
Theresa May. (WSJ)
Eurozone exports jumped 3.3% in November while imports increased
1.8% from October. (WSJ)
Daimler AG led a $17.2 million investment in London-based
Starship Technologies, which specializes in robots that deliver
goods to customers' doors.
Wal-Mart Stores Inc. shuffled e-commerce executives as it
integrates its Jet.com acquisition more into its online business.
(WSJ)
U.S. companies are pouring money into Mexico's energy sector,
betting the plunging peso and other economic stress won't disrupt
their business. (WSJ)
Ray-Ban maker Luxottica Group SpA will merge with French
optical-lens maker Essilor International SA, creating a $49 billion
global eyewear giant. (WSJ)
China's direct investment overseas is likely to decline this
year, reversing years of rapid increases that fueled global booms
in infrastructure and real estate. (WSJ)
Dubai's DP World signed an agreement with Kazakhstan to develop
a special economic zone in the Caspian Sea city of Aktau. (The
National)
Taiwanese iPhone assembler Pegatron says it could at least
triple its U.S. manufacturing operations if necessary. (Nikkei
Asian Review)
J.C. Penney Chief Executive Marvin Ellison says in-store pickups
of online sales are helping improve the retailer's e-commerce
efficiency. (Dallas Morning News)
Sales at British online apparel merchant ASOS PLC Holdings
jumped 36% in the last four months of 2016, boosted by sales to
U.S. shoppers. (Internet Retailer)
China's iron ore imports fell 8% in December but still reached
an annual record of more than 1 billion metric tons. (Reuters)
Global cotton shippers are looking at using blockchain
technology to make trading more secure and efficient. (Sourcing
Journal)
The southwestern Pennsylvania region can expect freight moving
through the area on all modes to increase by 40% by 2040.
(Pittsburgh Post-Gazette)
Germany-based chemical and oil logistics specialist Talke will
spend $20 million to expand operations in the Houston area.
(Houston Chronicle)
Two Greek shipping companies were ordered to pay $2.7 million in
penalties on charges related to dumping oil sludge near the Port of
Wilmington, N.C. (Virginian-Pilot)
The U.S. rejected an application by Venezuelan freight airline
Transcarga Airways to run charter flights to U.S. cities.
(CH-Aviation)
Freight broker Total Quality Logistics is opening a station in
Milwaukee it says will have up to 75 workers in three years.
(Milwaukee Journal Sentinel)
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:
http://on.wsj.com/Logisticsnewsletter .
Write to Paul Page at paul.page@wsj.com
(END) Dow Jones Newswires
January 17, 2017 06:53 ET (11:53 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.