Today's Logistics Report: Seeking Steady Shipping Trade; Semi Cell Shortage; GM Driving Electric
January 29 2021 - 10:29AM
Dow Jones News
By Paul Page
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The global shipping industry is looking for calmer sailing under
a Biden administration. Shipowners across a range of sectors say
their operations were roiled by the tariff-filled trade showdowns
and sanctions by the White House over the past four years. The WSJ
Logistics Report's Costas Paris writes in a Shipping Matters
commentary that the persistent volatility unsettled many operators,
even those that profited from the turbulence, like tanker operators
that raked in high shipping rates early last year. Industry
executives don't expect a fast resolution of trade differences
between the U.S. and China under President Biden. But they hope the
administration will work quietly to normalize trans-Pacific
relations and that trans-Atlantic trade in products from consumer
goods to industrial minerals moves at a steadier pace. Uncertainty
may have kept a lid on orders at shipyards, some executives say,
because operators in some sectors were uneasy over future
demand.
TRANSPORTATION
Tesla Inc.'s production line for its new Semi truck remains in
low gear even as the Silicon Valley icon boosts output of its
signature electric passenger cars. Tesla still plans to deliver its
first heavy-duty truck by the end of the year, but the WSJ
Logistics Report's Jennifer Smith writes the company is coping with
a shortfall in the specialized battery cells needed to power the
rig. CEO Elon Musk told an earnings call this week that "scaling
production is very hard," and Tesla's go-it-alone strategy on key
technology components may make it even harder. The economics are
also a factor. Mr. Musk says the Semi will require five times more
battery cells than Tesla's passenger cars but the big rigs won't
sell for five times the price of a car. Tesla has solved the
technology challenge of electrifying trucks but now it appears the
financial drag may be the tougher question.
TRANSPORTATION
General Motors Corp. is veering away from a supply chain built
on fossil fuel. The auto maker set a 2035 target date for phasing
out gasoline- and diesel-powered vehicles globally, the WSJ's Mike
Colias reports, making GM among the first major auto makers to put
a timeline on transitioning to a fully electric lineup. The goal
would mark a striking transition from GM's current business model,
and set a transition period for the company to ramp up new
alternative-fuel supply chains while existing production and
distribution plans gradually wind down. Those moves would likely
reach far beyond GM's own operations and accelerate
electric-vehicle adoption well beyond what most industry
forecasters expect. Only about 2.2 million fully electric vehicles
were sold globally last year, accounting for 3% of all sales, and
research firm LMC Automotive predicts electric vehicles will
account for only 20% of global sales by 2032.
QUOTABLE
IN OTHER NEWS
The U.S. economy grew at a 4% annual pace in the fourth quarter
on stronger consumer spending, inventory investment and exports.
(WSJ)
The number of new jobless claims in the U.S. remained at
historically high levels. (WSJ)
American Airlines Group Inc. lost $2.2 billion in the fourth
quarter while cargo revenue rose 32% to $285 million. (WSJ)
Ford Motor Corp. will start building its iconic Mustang vehicles
in China. (WSJ)
A liquid nitrogen leak at a northeast Georgia poultry plant
killed six people. (WSJ)
Annual sales growth at McDonald's Corp. accelerated in the
fourth quarter to 5.5%. (WSJ)
Drinks maker Diageo PLC's spirits sales in the U.S. rose 15% in
the first half of the year. (WSJ)
The European Union will empower member states to block exports
of coronavirus vaccines. (Financial Times)
Apple Inc. supplier Luxshare Precision Industry of China is
investing $926 million in an iPhone supply business owned by rival
Pegatron. (Nikkei Asian Review)
Walmart Inc. s adding two e-commerce fulfillment centers outside
Dallas. (Dallas Morning News)
Costco Wholesale Corp. plans to build a 1.5 million-square-foot
distribution center south of Tacoma, Wash., for online fulfillment.
(Daily Chronicle)
Upscale retailer Neiman Marcus will spend $85 million to improve
its digital commerce efforts. (Business of Fashion)
A survey by Coresight Research and Blue Yonder suggests many
retailers have turned to "nearshoring" to gain more control of
their supply chains. (Sourcing Journal)
Strict customs checks of inbound frozen fish have led to a huge
pileup of cargoes at China's Dalian port. (Bloomberg)
Italy's Fincantieri SpA and France's Chantiers de l'Atlantique
called off talks aimed at merging the shipyards. (Lloyd's List)
Taiwan's Evergreen Marine Corp. is buying up to 20 mid-sized
container ships in orders with four shipyards. (TradeWinds)
Norfolk Southern Corp.'s fourth-quarter net profit edged up 1%
to $671 million despite a 4% drop in revenue. (Railway Age)
Canadian Pacific Railway Ltd. reduced its operating ratio to a
company record 53.9%. (Progressive Railroading)
More than 150 passenger planes were reconfigured to handle
freight last year. (Air Cargo News)
Atlanta-based JAS Worldwide is buying the Tigers freight
forwarding subsidiary of France's Geopost.. (The Loadstar)
RGL Logistics bought a property with a 450,000-square-foot
distribution center in Appleton, Wis. (Appleton Post-Crescent)
ABOUT US
Paul Page is editor of WSJ Logistics Report. Follow the WSJ
Logistics Report team: @PaulPage, @jensmithWSJ and @CostasParis.
Follow the WSJ Logistics Report on Twitter at @WSJLogistics.
Write to Paul Page at paul.page@wsj.com
(END) Dow Jones Newswires
January 29, 2021 10:14 ET (15:14 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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