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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