Today's Top Supply Chain and Logistics News From WSJ
January 03 2018 - 07:03AM
Dow Jones News
By Paul Page
Sign up: With one click, get this newsletter delivered to your
inbox.
One of the world's biggest consumer goods suppliers is trying to
fight upstart competitors with some of their own guerilla tactics.
Anglo-Dutch packaged-goods giant Unilever PLC has started rolling
out its own version of highly-targeted brands in areas such as
toothpaste and shampoo as a response to the consumer movement
toward smaller, niche or locally made products. The WSJ's Saabira
Chaudhuri writes the tactic is aimed at matching Unilever's vast
scale and its global supply chain with more nimble marketing
schemes and product choices. It's a response to a broad-based
revolt among shoppers that threatens a business model that has
served Unilever and other goods suppliers for decades, one that's
put a premium on relentless consistency and low costs for a long
range of goods. With local brands peeling away business that was
built on globalization, consumer goods suppliers are trying to
maintain the benefits of their world-wide supply chains without
taking a hit from shoppers.
Steelmakers are boosting production capacity in the U.S. again
in a bet that they can break the grip that cheap imports have on
American industrial supply chains. Companies including Nucor Corp.,
Tenaris SA and startup Big River Steel LLC are building mills and
accelerating output, the WSJ's Bob Tita writes, even as steel flows
into the U.S. continue to rise. The steelmakers are counting on new
U.S. tariffs to help ward off cheaper foreign goods, but they're
also pointing to bigger changes in manufacturing and logistics
trends that they expect to boost domestic demand. Nucor says a new
site in Missouri to produce reinforcing bar, or rebar, used in
construction projects, will be closer to customers, allowing for
faster, cheaper delivery. And Tenaris expects to sell directly to
its customers, cutting out the middlemen's markup. Still, experts
say they're placing risky bets and that cutting costs could also
leave them with tighter margins.
Tough talk on tariffs meant to stem the flow of cheap imports of
some goods into the U.S. may be having the opposite impact. Foreign
makers of products including washing machines and solar panels are
ramping up shipments to the U.S., the WSJ's Andrew Tangel reports,
boosting inventories at rapid rate ahead of government decisions on
potential new barriers. The influx comes after appliance giant
Whirlpool Corp. and solar-panel maker Suniva Inc. sought new
barriers against what they say is unfair competition from cheap
foreign suppliers. Ships brought large residential washing machines
to U.S. ports at more than double the previous year's clip in
November, according to research group Panjiva, providing up to six
months' worth of surplus washer inventory. U.S. import volumes for
solar panels and related products also more than doubled. Whirlpool
says the imports suggest competitors are stockpiling goods,
undermining any tariffs before they even take effect.
SUPPLY CHAIN STRATEGIES
Dairy sellers weren't counting on the competition from almonds
when they started boosting flows of organic milk into growing
markets. In a turnaround at supermarkets that highlights the risks
in riding new consumer trends, dairy producers are sinking in an
oversupply of organic milk as the very shoppers who drove demand
for the specialty product move on to newer alternatives. The WSJ's
Heather Haddon and Benjamin Parkin report that food companies and
dairy farmers that invested in organic production after a yearslong
surge in demand now are losing space in shopping carts at a
surprising rate to almond, coconut and other plant-based milks. The
result shows a big disconnect between the developing market and the
dairy-industry forecasts that projected organic-milk demand would
continue to grow at the initial pace. Producers now are trying to
divert their supplies to other products like cheeses even as they
cull the herds that were built up based on those earlier
forecasts.
QUOTABLE
IN OTHER NEWS
South Korea impounded a second ship suspected of transferring
oil to North Korea in violation of U.N. sanctions. (WSJ)
House Transportation and Infrastructure Committee Chairman Bud
Shuster and Sen. Orrin Hatch became the latest Republicans to
announce their retirement from Congress. (WSJ)
Wages are starting to grow in U.S. cities that have the tightest
labor markets. (WSJ)
Mexico's exports rose 9.2% in November, including an 11.6% surge
in vehicles and auto parts exports. (WSJ)
The eurozone's economy grew at an estimated 2.4% rate last year,
the strongest growth since 2007. (WSJ)
Texas-based Commercial Metals Co. will acquire assets from a
Brazilian rival that would double its share of the market for
rebar, a key construction material. (WSJ)
Airbus SE finalized a record-setting order for 430 passenger
jets from four airlines linked to private equity firm Indigo
Partners LLC. (WSJ)
Operating costs for U.S. passenger airlines are rising faster
than revenues. (WSJ)
Global sales of passenger cars and trucks likely surpassed 90
million for the first time in 2017. (WSJ)
U.K. manufacturing cooled in December from a four-year high the
month before. (The Independent)
Honda Motor Co. will work with Alibaba Group Holding Ltd. to
develop services for connected cars. (Nikkei Asian Weekly)
Wal-Mart Stores Inc. will boost its apparel and footwear
sourcing from Cambodia amid growing concerns over political unrest
there. (Fibre2Fashion)
Global air freight prices soared in November at the fastest rate
since the aftermath of the financial crisis. (Lloyd's Loading
List)
South Korean shipyards sharply raised their 2018 order targets
on forecasts of strengthening shipping trade. (Yonhap)
Canadian regulators say the country's two big railroads exceeded
their grain revenue entitlement for the past crop year.
(Progressive Railroading)
Yangtze River Development Ltd. is buying Wuhan Economic
Development Port Co. and plans to expand logistics infrastructure
at the central China city. (American Shipper)
Hamburg-based Essberger Tankers is buying fellow chemical tanker
operator Crystal Nordic. (Seatrade Maritime)
Chinese social networking service Renren Inc. bought U.S.
truck-parking appTrucker Path. (Fleet Owner)
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. Follow the WSJ
Logistics Report on Twitter at @WSJLogistics.
Write to Paul Page at paul.page@wsj.com
(END) Dow Jones Newswires
January 03, 2018 06:48 ET (11:48 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Unilever NV (NYSE:UN)
Historical Stock Chart
From Feb 2024 to Mar 2024
Unilever NV (NYSE:UN)
Historical Stock Chart
From Mar 2023 to Mar 2024