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By Paul Page 

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Container shipping lines say they are moving from a supply shock in China to a demand shock as Western countries lock down their economies to slow the spread of the coronavirus. Ocean Network Express Chief Executive Jeremy Nixon tells the WSJ Logistics Report's Costas Paris the Japanese container line is bracing for a second wave of disruption, one that could strand containers on ships and ports as importers in Europe and the U.S. and Asia cancel orders and rattling operations at ports and inland logistics companies. Container ship operators canceled more than half their sailings through China as coronavirus shutdowns hit the country last month, and more sailings could be dropped as carriers try to maintain shipping rates and conserve cash. Mr. Nixon says lessons learned from watching China's ports in February, along with automation at terminals, should help Western ports sidestep the most significant disruptions.

ECONOMY & TRADE

There's no shortage of jobs in logistics even as big parts of the American economy go quiet. From cleaning products suppliers to food-delivery operators, companies are looking to add big numbers of workers in warehousing and distribution, the WSJ'S Chip Cutter reports, in a sign of how the economy is transforming under the coronavirus cloud. The shift is being led by some of the biggest corporate names, with Amazon.com Inc. saying it plans to add 100,000 warehouse and delivery workers and Walmart Inc. looking to fill 100,000 jobs in stores and fulfillment centers. Smaller operators are joining in. Blue Apron Holdings Inc. had been foundering but the meal-kit provider wants to fill 300 positions at its fulfillment centers in Linden, N.J., and Richmond, Calif., and the company is slimming down its menu to maintain the pace of its supply chain under surging demand.

SUPPLY CHAIN STRATEGIES

Suppliers of medical gases are racing to match their supply chains to the growing demand for the purified oxygen needed to treat the coronavirus. France-based Air Liquide SA and Air Products & Chemicals Inc. of Allentown, Pa., are exploring ways to ensure supplies remain sufficient as demand soars, the WSJ's James R. Hagerty reports. Most of the anxiety over respiratory treatment during the pandemic has centered on a shortage of ventilators. But the devices rely on purified medical oxygen, and supplying the gas may prove complicated as demand grows in hard-hit areas. Air Liquide says it has "the logistics in place" for world-wide distribution, while Air Products says it is building up inventory where it can around the world. Oxygen is delivered in bulk, liquid form to hospitals and requires special handling, Air Products is helping train military drivers in the U.K. to deliver oxygen in case that becomes necessary.

QUOTABLE

IN OTHER NEWS

A record 3.28 million American workers applied for unemployment benefits last week. (WSJ)

U.S. oil prices are down 63% so far this year. (WSJ)

The U.S. government expects to take stakes in airlines in exchange for direct grants to the companies under the $2 trillion rescue package. (WSJ)

Big cruise-ship operators don't qualify for aid under the roughly rescue measure. (WSJ)

Ford Motor Co. expects to reopen production at some U.S. factories on April 14. (WSJ)

Brazilian oil producer Petrobras is cutting production by 100,000 barrels per day. (WSJ)

Texas-based grocer H-E-B was speaking with Chinese counterparts in January and undertook tabletop simulations to prepare its supply chain for the coronavirus impact. (Texas Monthly)

Malaysia's Top Glove, the world's largest glove manufacturer, expects a 40% profit increase in the second half of its fiscal year. (Nikkei Asian Review)

U.S. truck safety regulators postponed an annual roadside inspection blitz scheduled for early May. (Transport Dive)

Maersk Line says several crew members on one of its container ships tested positive for coronavirus and were evacuated. (Lloyd's List)

South Africa will shut down mining output as part of a three-week lockdown of the country. (Splash 247)

Cargo and containers are piling up at India's ports as the country locks down economic activity. (Journal of Commerce)

CMA CGM has sold the first eight of the port terminals the French shipping line intends to shed as part of a refinancing plan. (ShippingWatch)

Air Canada began offering its passenger aircraft for cargo-only trans-Atlantic flights. (Air Cargo News)

The maker of Peeps Easter candies is suspending production. (Kitchn)

ABOUT US

Paul Page is editor of WSJ Logistics Report. Follow the WSJ Logistics Report team: @PaulPage , @jensmithWSJ and @CostasParis. Follow the WSJ Logistics Report on Twitter at @WSJLogistics.

Write to Paul Page at paul.page@wsj.com

(END) Dow Jones Newswires

March 27, 2020 08:36 ET (12:36 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.