Today's Logistics Report: Fighting for a Port; Strife on Docks; Accelerating Technology
August 21 2020 - 9:51AM
Dow Jones News
By Paul Page
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An Islamic extremist insurgency in Mozambique is getting
disturbingly close to major natural gas developments. A group
affiliated with Islamic State seized control of the East African
country's Mocimboa da Praia port this month, the WSJ's Costas
Paris, Sarah McFarlane and Benoit Faucon report. The confrontation
is bringing violence to a site that's been used as a logistics
transit point for equipment heading to developments that include a
multibillion-dollar project led by French energy giant Total SA.
Shipping companies and shipbuilders have been looking at that site
as a potential boon because it would require some 16 new liquefied
natural gas carriers to handle the projected output. Total says
it's not slowing down, and has "a robust security protocol in place
with the authorities to ensure the security of the workforce and
the operations." The project is one of three major energy
developments planned in Mozambique that have drawn significant
foreign backing.
TRANSPORTATION
Labor strife at the Port of Montreal is disrupting supply chains
in Eastern Canada and pushing freight to other gateways. The
walkout by dock workers is nearly two weeks old, the WSJ's Vipal
Monga reports. The dispute is hitting operations at the country's
second-biggest port as companies are gearing up for stronger
business following the pandemic-driven downturn in the first half
of the year. The longshore workers have been working without a
contract since the end of 2018, and they're looking for an
improvement in scheduling they say leaves them with little
work-life balance. For shipping customers, the walkout marks a new
hotspot in port operations around North America that are frequently
subject to labor-management tensions. Montreal is a major gateway
for both container and bulk-industrial goods, and for now shippers
are looking to Halifax and even to some U.S. East Coast ports as
alternatives.
QUOTABLE
E-COMMERCE
Retailers are trying to ramp up their digital investments as
fast as shoppers are moving online. Home Depot Inc., Nestlé SA,
AutoNation Inc. and others are accelerating their e-commerce
efforts, the WSJ's Sara Castellanos writes, resetting technology
and operations they expect to continue even once the pandemic
subsides. E-commerce has been a bright spot amid the upheaval in
the retail sector since the spring, and digital capabilities have
marked the dividing between continuity and collapse for many
merchants. U.S. e-commerce sales are forecast to grow 18% to $709.8
billion this year, representing a record 14.5% of total retail
sales. That's driving the urgent rollout of new technology and
fresh logistics strategies to meet the demand. Home Depot in May
converted a Chicago- area warehouse into a consumer fulfillment
center and upgraded to new IT systems to manage the warehouse. The
project was completed in just three weeks.
IN OTHER NEWS
The number of Americans filing for first-time unemployment
benefits rose to 1.1 million last week. (WSJ)
Europe's economic recovery slowed in August while Japan saw
another drop in activity. (WSJ)
Chinese e-commerce giant Alibaba Group Holding Ltd.'s
first-quarter profit more than doubled from the same period a year
earlier. (WSJ)
Chinese mobile payments company Ant Financial earned $3.5
billion in its most recent six-month reporting period. (WSJ)
A California appeals court paused a ruling that required Uber
Technologies Inc. and Lyft Inc. to reclassify their drivers as
employees. (WSJ)
The Pentagon gave five small drone manufacturers permission to
sell to the U.S. military and federal agencies. (WSJ)
American Airlines is dropping flights to several small U.S.
cities in October when federal subsidies for the service expire.
(WSJ)
Mall owner CBL & Associates plans to file for bankruptcy
protection by Oct. 1. (WSJ)
The U.S. suspended a reciprocal tax exemption arrangement with
Hong Kong for shipping companies. (South China Morning Post)
Kohl's says it faced higher second-quarter shipping costs as it
sought to fulfill e-commerce orders from closed department stores.
(Supply Chain Dive)
The owner of TJ Maxx apparel stores say supply chain and
logistics problems hampered efforts to restock as outlets reopened.
(Sourcing Journal)
The resurrected Toys R Us brand dropped an e-commerce deal with
Target Corp. and will fulfill orders through Amazon.com Inc.
(Forbes)
L Brands Inc.'s' revenue fell in the second quarter on a 39%
slide in Victoria's Secret sales. (CNBC)
Maersk Line says nearly half of its spot bookings now come from
its digital instant quote service. (Journal of Commerce)
Navios Maritime Inc. lost $35.3 million in the second quarter on
slumping dry bulk demand. (Lloyd's List)
Navios Maritime will list its South American logistics business
through an initial public offering. (TradeWinds)
Norwegian tanker operator Odfjell swung to a $31 million net
profit in the second quarter on strong demand for chemical
transports. (ShippingWatch)
Parking for heavy-duty trucks is becoming harder to find in
Texas. (Houston Chronicle)
Fourteen states and the District of Columbia are suing the
federal government over a rule allowing the bulk transport of
liquefied natural gas by rail. (Progressive Railroading)
Thousands of baby chicks shipped to New England farmers have
arrived dead since the Postal Service cut operations in recent
months. (Bloomberg)
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
August 21, 2020 09:36 ET (13:36 GMT)
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