By Paul Page
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The biggest heavyweight in the "gig" economy is putting its
considerable capital and research capabilities behind self-driving
trucks. Uber Technologies Inc. is buying Silicon Valley trucking
startup Ottomotto LLC, the WSJ's Greg Bensinger and John Stoll
report, in a deal worth around $680 million that promises to
accelerate the push toward autonomous technology in trucking. The
agreement comes as Uber is stepping on the accelerator In its
broader push toward self-driving technology, laying out a plan to
offer autonomous vehicles for passenger rides in Pittsburgh. The
move into trucking may have a more immediate impact, however.
Ottomoto believes regulators would look more favorably on vehicles
that operate primarily on highways, rather than through dense urban
streets. And Uber's new interest in trucking will likely spur other
truck manufacturers already researching autonomous technology to
step up those efforts.
DP World is moving ahead cautiously in its capacity growth even
after a banner financial start to this year. The global container
terminal operator is pulling back expansion at its flagship Jebel
Ali port in Dubai and stressing "disciplined investment, improving
efficiencies and managing costs" in a tough market for global
trade. The wary outlook comes even after DP World posted a 50% gain
in first-half profit, to $608 million, on a 10.2% gain in revenue,
the WSJ's Nikhil Lohade reports. The gains were largely built on DP
World's big acquisitions, however, and growth excluding those
purchases was far more modest, in line with what the operator calls
a "challenging trade environment." Still, DP World's strong
financial footing and a healthy budget for capital spending suggest
the business may still bulk up -- whether at its existing sites or
new shipping terminals that it may bring on board.
Home Depot Inc. says it is reaping the benefits of using stores
for online sales fulfillment . Some 42% of online orders and 90% of
returns were handled at the home-improvement giant's stores in the
second quarter, a strong show of efficiency that helped push the
business to 9.3% profit growth in a tough retail environment. Many
in the retail industry believe fulfilling online orders from
physical stores is a critical weapon in the battle for market share
and to serve e-commerce demands while preserving profit margins.
WSJ Logistics Report's Loretta Chao writes that is easier said than
done, but that Home Depot may have an advantage with its
warehouse-like stores and sprawling inventory. Home Depot says the
ability to order from specific stores is proving popular with
customers, and that is pushing the company to look at how to adjust
its supply chain to meet that demand.
SUPPLY CHAIN STRATEGIES
The shipping industry is bracing for what could be a longer-term
effect from the Blue Cut fire even as businesses try to adjust amid
a spreading disaster zone in Southern California. Commercial
operators have been scrambling to keep goods moving as a massive
wildfire east of Los Angeles shut down one of the nation's major
freight corridors for nearly two days this week, the WSJ's Erica E.
Phillips and Jennifer Calfas report. The fire has pinched access in
and out of Southern California's busy seaports and inland
distribution centers, interrupted freight rail service and sent
truckers scrambling for paths around the hard-hit area. The bigger
worry for shippers may come if inbound goods pile up over time,
creating backlogs that ripple across distribution operations far
from the scene of the fire.
QUOTABLE
IN OTHER NEWS
Nike Inc. struck a pact with Apollo Global Management LLC to
overhaul its manufacturing and supply chain. (WSJ)
Volkswagen AG may cut work at five German plants due to a labor
dispute at a part supplier that has disrupted production. (WSJ)
Wal-Mart Stores Inc. raised its profit outlook for the year and
said same-store U.S. sales would rise 1% to 1.5% in the third
quarter. (WSJ)
British retail sales rose strongly in July, helped in part by a
weak pound that lured overseas visitors to snap up goods. (WSJ)
A federal judge rejected a proposed $100 million settlement
between Uber and drivers in two states, reviving the debate over
the company's freelance labor model. (WSJ)
Gap Inc. cut its outlook for the rest of 2016 after reporting a
sales decline and saying efforts to improve its supply chain were
still continuing. (WSJ)
Cisco Systems Inc. is cutting 5,500 employees as the networking
company responds to market shifts that have customers favoring
software over hardware. (WSJ)
Perry Ellis International Inc. will close 15 stores in the U.S.,
the latest sign of a shrinking physical retail presence as
consumers increasingly shop online. (WSJ)
Mass-market sweets giant Nestlé SA plans to push into the
high-end chocolate market, chasing growth as overall chocolate
volumes decline. (WSJ)
Carlyle Group LP will focus its Asia real estate investing on
China logistics and office projects, pointing to warehouse growth
from e-commerce demand. (Reuters)
Retailer American Apparel may move from its downtown Los Angeles
manufacturing facility for a lower-wage part of the country. (Los
Angeles Times)
XPO Logistics Inc. refinanced $1.64 billion of its debt,
reducing its debt-service load. (Logistics Management)
China's Sinotrans Shipping lost $40.2 million in the first half
of 2016, more than double the loss of a year ago as revenue tumbled
20.6%. (Journal of Commerce)
Amazon.com Inc. will place its 13th fulfillment center in the
U.K. about 30 miles east of London, in Tilbury. (Tech News
Today)
Pfizer Ltd. will close four U.S. distribution centers that came
with the pharmaceutical giant's purchase last year of Hospira.
(Fierce Pharma)
International Consolidated Airlines Group SA is adding regional
freighter services through Milan, Amsterdam and Paris under a deal
with DHL. (Air Cargo News)
Container throughput at Germany's Port of Hamburg fell 1.2% in
the first half of the year. (Container Management)
European shipping and logistics group DFDS raised its outlook
after reporting strong freight volume and revenue growth in the
second quarter. (Lloyd's Loading List)
IKEA International A/S will test the use of online sales for its
furniture in China. (China Daily)
A.P. Moller-Maersk A/S will scrap 20 vessels and cut 400 workers
from its Maersk Supply Service oil services subsidiary. (Splash
24/7)
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.
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
August 19, 2016 06:28 ET (10:28 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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