Today's Top Supply Chain and Logistics News From WSJ
April 24 2018 - 6:54AM
Dow Jones News
By Paul Page
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Two of the big U.S. freight railroads are putting more money
behind their recruiting efforts.BNSF Railway and Union Pacific
Corp. are offering signing bonuses of up to $25,000 to prospective
workers, highlighting how strong shipping demand and a tight labor
market are triggering wage pressures at freight operators. The
"hiring incentives" vary by location and job, the WSJ's Paul Ziobro
reports, and analysts and union leaders say the bonuses are the
highest they can recall. BNSF says the railroad is facing a talent
shortage across its system and is extending the offer to diesel
mechanics, electricians and conductor trainees. Those can be
demanding jobs, with irregular schedules, long hours and frequent
nights away from home -- a tough sell with the national
unemployment rate at 4.1%, and as low as 2.8% in some markets where
railroads are hiring.
A new bid aims to rescue Sears Holdings Corp. by turning some of
its signature business lines into suppliers for the rest of the
retail world. Under a new plan, Sears Chief Executive Edward
Lampert would buy the Sears Parts Direct and home-improvement
segments through his hedge fund and would submit a proposal to buy
the Kenmore appliance operation. The moves are meant to inject cash
into the business and stave off bankruptcy, the WSJ's Suzanne
Kapner and Allison Prang report, but they would also carve up of
the business and give shoppers less reason to buy directly from the
retailer. Sears suppliers have grown increasingly concerned about
the company, forcing Sears to pay cash upfront for many goods.
Sears remains a top appliance seller, but so far it looks like no
one other than Mr. Lampert wants to buy the whole Kenmore line.
The retail industry's woes are weighing heavily on toy
suppliers. Hasbro Inc. blamed a 16% decline in first-quarter sales
on the liquidation of Toys "R" Us Inc., and that has the company
speeding up its drive to take more control of its business online.
The WSJ's Paul Ziobro reports Hasbro is laying off executives in
commercial operations and bringing in people with more expertise in
e-commerce. Hasbro already was viewed as a leader in adapting to
the new marketplace, and it looks like the company sees bigger
changes coming even as other retailers press for more of the
Transformers and My Little Pony dolls that Hasbro distributes.
Hasbro says some retailers are considering expanding their toy
sections to help fill the Toys "R" Us gap. But Hasbro's moves
suggest the company isn't willing to wait for those companies to
decide.
LOGISTICS TECHNOLOGY
Some of the world's heavyweight technology investors are getting
behind freight load-matching technology in China. Japan's SoftBank
Group Corp. and Alphabet Inc.'s Capital G late-stage venture fund
are among investors plowing close to $2 billion into the Chinese
truck-hailing company Manbang Group. The WSJ's Julie Steinberg and
Liza Lin write that Manbang, also known as Full Truck Alliance,
runs a mobile app platform that matches truck drivers with shippers
looking to transport cargo. Previous backers have included internet
giant Tencent Holdings Ltd. and a private-equity firm co-founded by
Chinese billionaire Jack Ma. The backing highlights the big
interest in China's growing logistics industry, where a highly
fragmented trucking business makes load-matching services
especially valuable. And the international reach of the investor
list raises the potential for the company's technology to reach
well beyond China.
QUOTABLE
IN OTHER NEWS
XPO Logistics Inc. hired a former Amazon executive Kenneth
Wagers as its chief operating officer. (WSJ)
A measure of U.S. economic growth declined from February to
March as growth in production and job-related indicators slowed.
(WSJ)
U.S. sales of previously-owned homes ticked up in March from a
month earlier but remained below year-ago levels. (WSJ)
Wholesale transactions in Canada unexpectedly dropped in
February on weakness in the auto sector. (WSJ)
Aluminum prices dove after the U.S. extended a deadline for
investors to exit dealings with Russian aluminum giant Rusal.
(WSJ)
Global private-equity firms and sovereign wealth funds are
pouring record investment into Vietnam. (WSJ)
China's Didi Chuxing Technology Co. is launching its
ride-hailing service in Mexico. (WSJ)
Japan's manufacturing sector expanded in April after three
straight monthly declines. (Manufacturing Global)
China's coal imports have tumbled since Beijing barred some
ports from taking in the energy shipments. (Reuters)
Target Corp. is halting sale of Hunter boots because of
production and quality problems with the supplier. (Minneapolis
Star-Tribune)
Unions at Canadian Pacific Railway Ltd. are urging members to
reject a contract offer. (Financial Post)
Ship broker Clarksons issued a profit warning, amid weak sale
and purchase activity and low tanker rates. (Lloyd's List)
Profits at Japan's three big container shipping lines are
forecast to rebound sharply this year. (Nikkei Asian Review)
The Alabama State Port Authority and AutoMobile International
Terminal will develop a car facility at the Port of Mobile.
(Container Management)
Scorpio Bulkers Inc. cut its first-quarter net loss to $5.8
million from $34.6 million a year ago. (Shipping Watch)
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
April 24, 2018 06:39 ET (10:39 GMT)
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