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By Paul Page 

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While venture capitalists and tech gurus are fretting over cryptocurrencies, the future of the underlying blockchain technology may be in the warehouse. Nitty-gritty research on the technology is underway in logistics, far from hype that surrounds cryptocurrencies like bitcoin, and the WSJ's Christopher Mims writes the behind-the-scenes efforts may bring much-needed change to some of the world's most critical, if unsexy, industries. Already, 1.1 million items on sale at Walmart Inc. are on a blockchain, helping the company trace their journey from manufacturer to store shelf. Maersk Line uses the same technology from IBM to track shipping containers, making it faster and easier to get them through customs and transfer them from one freight-handler to the next. Blockchain is gaining traction in logistics because it's well-suited to transactions that require trust and a permanent record and involve many different parties. And critically, the technology has buzz that attracts developers and investment, providing a new jolt to operations that have made only small progress in technology in recent years.

The push toward electric vehicles is triggering a sharp turn in traditional automotive supply chains. Ohio-based auto parts supplier Dana Inc. is bidding for control of GKN PLC's axle business in a deal valued at $6.1 billion, the WSJ's Chester Dawson reports, stepping into a nasty battle for the British parts maker that highlights the urgency of changing auto manufacturing strategies. The move, which would create the world's largest supplier of driveline components, is designed to improve Dana's position in electric-vehicle production. The battle over GKN may reverberate across truck plants since GKN's customer list includes truck makers Paccar Inc. and Volvo AB. It's part of a broader restructuring of the automotive supplier market as technology companies rush in with new autonomous-vehicle strategies and traditional suppliers like Dana jockey for a place in a changing business. Just this month, Japanese auto parts supplier Denso, an affiliate of Toyota Motor Corp., acquired a 4.5% stake in chipmaker Renesas Electronics.

The world's biggest mining companies are growing more concerned about costs even as they count up big profits. Barely into a commodities rebound, the sector faces a fresh cost crunch as production and transportation prices begin to climb, the WSJ's Rhiannon Hoyle reports, placing new pressure on suppliers including the dry-bulk carriers that are still trying to climb out of the financial hole created by the long commodities downturn. Companies including Rio Tinto and Glencore PLC have focused heavily on reining back operating costs in recent years, introducing drones and driverless trucks meant to keep labor costs down. New stresses are spreading from production to distribution. Workers are demanding higher wages in countries like Chile, where truck drivers argue better copper prices should translate to better pay. And the Baltic Dry Index measure of shipping prices has been tracking lower this year after rebounding late last year, suggesting shipping customers may be pushing back harder against rate increases.

ECONOMY & TRADE

Automobile trade is providing the latest battleground over U.S. tariffs. President Donald Trump is lashing back at European criticism of his planned steel and aluminum tariffs with suggestions that the U.S. might put new levies on European cars, the WSJ's Andrea Thomas, Paul Vieira and David Winning report, putting countries such as Germany high on the list of possible targets in a potential trade war. The EU imposes a 10% duty on cars imported from the U.S. and some other countries, while the U.S. duty on cars imported from the EU is 2.5%, under global trade rules set in 1994. Meantime, American steel maker Nucor Corp., which has applauded the tariffs, says it will build a $240 million steel mill in Florida, the company's latest effort to capitalize on a rising market for the metal. The plant will produce reinforcing steel bars used in construction, and Nucor says it will have an advantage over competitors who ship rebar long distances.

QUOTABLE

IN OTHER NEWS

The OECD projects an improving global economy this year if trade tensions don't undercut expansion. (WSJ)

President Trump blocked Broadcom Ltd.'s hostile bid for Qualcomm Inc. over national security concerns. (WSJ)

Johnson Controls International PLC could sell or spin off its battery business as part of the industrial company's plan to strengthen its core building technology offerings. (WSJ)

More than 45 people were killed when a plane crash-landed and caught fire at Nepal's Kathmandu Airport. (WSJ)

Amazon.com is launching sales in Vietnam, in a challenge to Alibaba Group Holding Ltd. in one of the fastest-growing e-tailing markets in the world. (Nikkei Asian Review)

Pakistani textile manufacturers are spending $7 billion to establish an additional 1,000 garment plants. (Sourcing Journal)

Kohl's Corp. says it filled 36% of its online orders through store pickups in the fourth quarter. (Supply Chain Dive)

Amazon.com took on about $22 billion in purchase obligations from food suppliers when it bought Whole Foods last year. (CNBC)

A survey shows more than a third of industrial distributors don't offer e-commerce options for buyers. (Industrial Distribution)

Ship broker Clarkson saw a 12% gain in pre-tax profit in 2017 on a 6% revenue gain in a recovering shipping market. (Financial Times)

The Suez Canal Authority is cutting rates for some bulk carriers in a push to win vessels carrying coal from U.S. suppliers to India. (Lloyd's List)

A freight rail capacity shortage is undermining attempts by Ukraine's grain producers to expand exports. (Bloomberg)

Maersk Line sister company APM Terminals is investing in greater landside logistics to attract logistics and freight companies. (Port Technology)

Fourth-quarter revenues at Canada's Cargojet jumped 25.6%. (Air Cargo News)

ABOUT US

Paul Page is deputy editor of WSJ Logistics Report. Follow him at @PaulPage, and follow the WSJ Logistics Report team: @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

March 13, 2018 06:36 ET (10:36 GMT)

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