SWK Stanley Black and Decker Inc

By Erica E. Phillips 

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Crude oil is back on the rails in a big way. North America's oil drillers are turning to trains amid tight pipeline capacity, the WSJ's Rebecca Elliot and Paul Ziobro write, triggering a rebound in crude-by-rail business that all but collapsed in the wake of high-profile accidents. North American railroads handled an average of 718,000 barrels of crude a day in October, up 88% from a year earlier and near the peak average of about 1.1 million barrels in October 2014. Rail is more expensive than pipelines, but pipeline projects typically lag behind growth in oil and gas production and have gotten tougher under protests against construction. North American oil production topped 15.6 million barrels daily in August, a 17% annual increase. The traffic is up nearly 25% for U.S. railroads in the first weeks of this year and Canadian transports are growing as stalled pipeline projects lead to more bottlenecks.

New digital tools are allowing truck drivers to be pickier about where they go for cargo.Uber Technologies Inc. has added a ratings feature to its freight-booking app that gives details on wait times and amenities at distribution siste, the WSJ Logistics Report's Jennifer Smith writes, with sites rated on a 1-to-5 scale and an option for written feedback. It';s the latest example of how tech-driven features in consumer business are being incorporated into industrial transportation. Surging cargo volumes last year had shippers scrambling for trucks competing to make their warehouses and factories more driver-friendly as operators got more picky about loads. Several freight brokers, from startups to established logistics firms like C.H. Robinson Worldwide Inc. and XPO Logistics Inc., collect driver feedback on conditions at loading docks, and use that information to set rates or pinpoint delays in supply chains.

The Midwest's deep freeze is putting supply chains on ice. An explosion and fire at a natural-gas facility in Michigan forced the shutdown of several auto plants, the WSJ's Douglas Belkin and Erin Ailworth report, as well as calls for businesses and consumers to cut back gas usage. General Motors Co. halted production at 13 plants while Fiat Chrysler Automobiles NV and Ford Motor Co. cut back on some work to ease the burden on power grids. Transportation companies including Union Pacific Corp., BNSF Railway, United Parcel Service Inc. and FedEx Corp. were alerting customers of potential multi-day delays in deliveries. Airlines canceled thousands of flights. And the U.S. Postal Service said it was suspending delivery service in certain locations including parts of Michigan, Indiana, Illinois, Ohio and Pennsylvania.

TRANSPORTATION

Investments in modernizing parcel networks are paying off as carriers align more operations for e-commerce. UPS posted higher-than-expected revenue during the busy fourth quarter even as the costs of adding sorting centers and upgrading facilities cut into profits, the WSJ's Paul Ziobro reports, and the company said it expects margins to grow this year. UPS spent billions of dollars to handle the increase in online orders rushing into its network, and the company held up well during its latest holiday season. Extra capacity and new technology to reroute packages around problem spots created fewer backlogs than prior years. UPS delivered 21 million packages a day in the U.S. during the fourth quarter and said it set a record for on-time deliveries. Even amid trade disruptions and weak growth overseas, UPS CEO David Abney said, "E-commerce is providing all kinds of opportunities."

The first big bankruptcy in several years in the freight-payment business is getting messy. Tool company Stanley Black & Decker Inc. claims in court papers that IPS Worldwide LLC "misappropriated" millions of dollars before filing for chapter 11 protection, the WSJ's Becky Yerak writes, launching sharp allegations in a case in which several major shippers are owed tens of millions of dollars. With big sums and big company names, the case has roiled a normally quiet corner of shipping. Creditors include metals manufacturers Alcoa Corp., $28.8 million, Arconic Inc., $16.9 million, retailer True Value Co., $6 million, and trucker YRC Freight, which is owed $4.7 million. Stanley is on the hook for about about $41 million the company says was supposed to go toward its freight bills. Freight companies weren't paid, however, and Stanley says IPS never answered its increasingly urgent questions on what happened to the money.

QUOTABLE

IN OTHER NEWS

Strong holiday sales and heavier reliance on third-party sellers boosted Amazon to another record quarterly profit. (WSJ)

The U.S. and China moved closer to settling their trade dispute as Beijing agreed to significant soybean purchases. (WSJ)

The number of Americans filing for new unemployment benefits rose to its highest level in 16 months. (WSJ)

Compensation growth for American workers slowed in the fourth quarter. (WSJ)

Sales in the U.S. of newly built homes rose 16.9% from October to November. (WSJ)

South Korea's exports fell 5.% in January in the second straight monthly decline. (WSJ)

The eurozone's annual rate of inflation fell for the third straight month in January

The Canadian economy contracted slightly in November. (WSJ)

China's slowing economy appears to be taking a toll on its trading partners around the world. (WSJ)

The European Union is exploring ways to address security concerns about Huawei Technologies Co. and other Chinese telecom-equipment suppliers. (WSJ)

Mexico has stopped buying U.S. light crude oil under its new president. (WSJ)

Meal-kit company Blue Apron Holdings Inc. lost customers in the latest quarter. (WSJ)

Computer-chip shortages are hurting Microsoft Corp. sales. (WSJ)

General Electric Co. reported weak profits in its core power business and legacy problems at GE Capital. (WSJ)

Hershey Co. is rolling out new candy and packaging to lift sales as it faces higher shipping costs. (WSJ)

Marlboro maker Altria Group Inc. said U.S. cigarette sales are falling more than it had expected. (WSJ)

Ford Motor Co. is boosting production of its Ranger midsize pickup truck at a Michigan factory. (Industry Week)

Amazon pulled many products from its India website to comply with new regulations. (Nikkei Asian Review)

China expects freight rail volume to grow 30% over the next two years. (RailFreight)

Waterways operator Kirby Corp. bought 99 barges and other vessels from Cenac Marine Services for $244 million. (Lloyd's List)

Cargo through Mexico's Pacific ports rose faster than at its Gulf Coast's ports for first time in five years. (Journal of Commerce)

Dockworkers in Sweden are extending their strikes at ports. (Lloyd's Loading List)

Canada introduced technology to allow trucks to bypass inspection stations. (Commercial Carrier Journal)

C.R. England Inc. increased pay for its truck drivers for the second in eight months. (American Journal of Transportation)

Adani Group and Welspun India Ltd. are developing logistics parks in Hyderabad, India. (Economic Times)

Michaels Cos. Inc. is closing 36 of its Pat Catan's stores. (Dallas Morning News)

Dozens of retail properties are being converted to logistics facilities. (CNBC)

Goya Foods Inc. plans a 330,000-square-foot distribution center in central Florida. (Business Journals)

Dollar General Inc. expects to open a nearly 1 million-square-foot distribution center in Longview, Texas, this spring. (Longview News-Journal)

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 Erica E. Phillips at erica.phillips@wsj.com

(END) Dow Jones Newswires

February 01, 2019 11:19 ET (16:19 GMT)

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