Today's Top Supply Chain and Logistics News From WSJ
January 18 2018 - 7:24AM
Dow Jones News
By Paul Page
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Apple Inc.'s famously global supply chain may take on a more
American look in the coming years. The electronics giant plans $30
billion in capital spending in the U.S. over five years, the WSJ's
Tripp Mickle reports, including investment in new facilities and
new spending with U.S. suppliers that would inject new growth into
the American economy. The plans signal an adjustment to Apple's
production strategy after years of criticism for its overseas
manufacturing of its iPhone, which has created an eco-system of
suppliers mostly across Asia. Apple expects to increase its
spending on U.S. suppliers such as glass-maker Corning Inc. by
about 10% this year to around $55 billion while expanding a fund
devoted to fostering manufacturing in the U.S. Apple expects the
investments to contribute $350 billion to the U.S. economy over the
next five years, but that figure may grow if the company's role as
an electronics trend-setter extends to manufacturing and draws more
factory work to the U.S.
CSX Corp. isn't done making its network smaller even as the
railroad tries to win back shippers. James Foote, who took over as
CEO last month, says the carrier is still looking at simplifying
its network and reviewing plans to scale back by selling some track
to other railroads. The WSJ's Paul Ziobro writes the work is aimed
at extending plans put into motion by Hunter Harrison, whose death
last month raised questions about the future of Mr. Harrison's
"precision railroading." Mr. Foote's comments suggest there's no
slowdown in the effort to make CSX leaner, faster and more
profitable. The new CEO has been taking that message to shippers
who were stung last year by deep service problems. CSX's
fourth-quarter earnings added another message -- volumes were down
but operating profit rose, in part because of higher prices,
signaling that freight rates are one area where CSX won't be
cutting back.
Airbus SE are both Boeing Co. are scrambling to keep their
production supply chains moving as fast as airlines are ordering
planes. Airbus said this week it built a record 718 aircraft in
2017 and Boeing pushed 763 jets to customers, the WSJ's Robert Wall
reports, capping a delivery frenzy that's been a boon to the jet
makers' profits while straining manufacturing and supply lines
around the world. Airbus fell short of its target of building at
least 200 A320neo planes last year because of lingering engine
supply issues, among several problems that have hit the companies
as their suppliers have tried to keep up with demand. That's also
strained relations between the aerospace giants and suppliers.
Boeing is so concerned, the WSJ's Doug Cameron writes, it is
establishing a separate supplier of high-end aircraft seats with
automotive seating supplier Adient PLC. It's Boeing's latest step
to bolster its supply chain by bringing some work in-house and
adding new suppliers.
SUPPLY CHAIN STRATEGIES
The path to new U.S. automotive factories is getting crowded.
Nissan Co. is the latest to join the rush, with the company's chief
executive saying the car maker's next expansion would likely
include a new plant in the U.S. That expansion could be four or
five years away, but the WSJ's Sean McLain reports the outlook puts
Japan's Nissan on a growing list of foreign auto manufacturers
looking to scale up in the U.S. Last week, Toyota Motor Corp. and
Mazda Motor Corp. said they would build a $1.6 billion plant in
Alabama., and Germany's BMW AG is expanding production at a plant
in South Carolina. The investments will make U.S. auto parts supply
chains bigger and give them a different look. Nissan is planning a
big push toward electric vehicles, and the company's growth could
push more of the metals, batteries and other parts for
alternative-power cars through the U.S.
QUOTABLE
IN OTHER NEWS
U.S. manufacturing output edged up 0.1%. in December as overall
industrial production rose at a rapid pace. (WSJ)
Canada's central bank raised its main interest rate but said
North American trade tensions cast a cloud over business
investment. (WSJ)
The Federal Reserve reports tight labor markets across the U.S.
but only modest wage and price growth. (WSJ)
British aircraft-engine maker Rolls-Royce Holdings PLC may sell
its commercial-marine division under a strategic review of its
business. (WSJ)
The commanders of two U.S. destroyers involved in collisions
that killed 17 sailors in Asia will be court-martialed on charges
including negligent homicide. (WSJ)
Casper Inc., an online direct-to-consumer mattress seller, named
new leadership as it pushes an expansion strategy. (WSJ)
British construction giant and government contractor Carillion
went into liquidation after rescue talks failed. (WSJ)
General Motors has outsourced the material-handling tasks at all
its China factories to third-party logistics companies.
(Reuters)
U.K. retailer Marks and Spencer is closing its main London
distribution center, staffed by XPO Logistics Inc. and DHL Supply
Chain. (Sky News)
Instacart Inc. will acquire Toronto-based grocery digital tools
startup Unata. (Globe and Mail)
Alibaba Group Holding Ltd. is looking for a distribution center
site in France. (Eseller Café)
Fourth-quarter sales at industrial parts supplier Fastenal
soared 14.8%. (Industrial Distribution)
Vessel capacity operated by the top 15 container lines grew
12.6% last year, says research group Alphaliner. (WSJ)
Japan's shipbuilders say order volumes for mainstay merchant
vessels rose 150% in 2017. (Nikkei Asian Review)
U.S. importers want maritime regulators to set limits on special
charges for cargo shipments held at ports. (American Shipper)
The Waterfront Commission of New York Harbor is suing over a new
law aimed at pulling New Jersey out of the crime-fighting body.
(Associated Press)
Shippers using Asia-Europe rail transport are setting long-term
contracts in a show of growing confidence in the service. (Journal
of Commerce)
Loaded container imports at South Carolina's Port of Charleston
jumped 13.6% in December. (Charleston Post and Courier)
Norway plans to shut down the country's fur farms. (The
Guardian)
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 18, 2018 07:09 ET (12:09 GMT)
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