Today's Logistics Report: Shipping's Demand Shock; Hiring for Logistics; Delivering the Gas
March 27 2020 - 8:51AM
Dow Jones News
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)
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