Today's Logistics Report: Beirut's Shock Waves; Vaccine's Painful Priorities; Amazon's Delivery Rebound
By Paul Page
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Lebanese authorities placed port officials under house arrest as
the humanitarian and economic fallout from the deadly Beirut port
explosion became clearer. The first of likely many flights bearing
relief supplies began to arrive at the city's international
airport, the WSJ's Isabel Coles and Nazih Osseiran report, while
workers sought to clear the wreckage from the blast Tuesday that
killed 137 people and devastated Lebanon's main trading gateway.
Shipping line CMA CGM said one of its staffers was among the dead,
and many of the missing were workers at the port where a depot
containing 2,750 tons of ammonium nitrate exploded. Investigators
are looking at the origins of the highly combustible material,
which arrived in Beirut after a ship carrying it docked there in
2013. It was subsequently abandoned by its owners. The vessel was
owned by Cyprus-based Teto Shipping Ltd., which is controlled by a
SUPPLY CHAIN STRATEGIES
Initial distribution of any successful coronavirus vaccine is
likely to be painfully slow. Supplies are now expected to fall
short of what is needed even for high-priority groups like
health-care workers, the WSJ's Peter Loftus reports, forcing
drugmakers and U.S. officials to grapple with who should be first
in line. The U.S. Centers for Disease Control and Prevention
estimates there may be 10 million to 20 million doses available at
first, short of the estimated 100 million Americans that
public-health officials believe should be vaccinated quickly
because they face high risks. The assessment highlights the
challenges before drugmakers as they try to ramp up vaccine supply
chains. The outlook suggests the biggest problem will be in
accelerating manufacturing rather than limits in distribution.
Companies conducting clinical trials say they expect to eventually
produce hundreds of millions of doses, but that bigger supply is
unlikely to kick in until next year.
Amazon.com Inc. is recovering from its delivery stumbles at the
onset of the coronavirus pandemic. The e-commerce giant spent
billions of dollars since March stabilizing its supply chain, and
the WSJ's Sebastian Herrera and Merrill Sherman report the
investment is paying off as Amazon's share of online sales rebounds
following an unprecedented decline and it counts the best quarterly
profit in its history. The company's early challenges and its
recovery have been part of the upheaval in the broader retail
market triggered by the coronavirus-driven lockdowns that closed
thousands of brick-and-mortar stores. Many of Amazon's shortcomings
during the pandemic came about because the company wasn't prepared
to handle the sudden boost in demand. That led the firm to take
steps that included hiring thousands more workers and adjusting a
lean inventory strategy that depended on Amazon's sophisticated
forecasting technology to keep stocks and costs at a minimum.
Amazon Delivery Times and Reviews Slip
IN OTHER NEWS
New filings in the U.S. for jobless benefits fell to the lowest
level since March. (WSJ)
The Turkish lira fell to a record low against the dollar.
The Trump administration will reimpose tariffs on Canadian
President Trump signed an order designed to help increase
production in the U.S. of essential medicines and medical gear.
Second-quarter revenue at Uber Technologies' Freight unit rose
27% to $212 million and the $49 million loss was down 6% from a
year ago. (WSJ)
Atlas Air CEO John Dietrich expects a traditional fall peak
season for air cargo following robust demand in the first half of
the year. (WSJ)
Virgin Atlantic Airways filed for bankruptcy in the U.S. to put
into effect a $1.5 billion rescue package. (WSJ)
Toyota Motor forecasts a nearly $7 billion profit this year as
car sales rebound faster than expected. (WSJ)
Online marketplace Etsy's second-quarter sales soared 137% to
$428.7 million. (WSJ)
Commodities giant Glencore swung to a $2.6 billion loss in the
first half of the year. (WSJ)
Adidas expects revenue to recover in the third quarter after the
Germany sports-gear maker lost $350 million in the June quarter.
U.S. apparel imports fell 30.4% in the first half of 2020.
A measure of logistics activity in the U.S. rose in July to its
highest level since January 2019. (Supply Chain Quarterly)
Amazon opened its first fulfillment center in the Tampa, Fla.,
area. (Tampa Bay Times)
A developer is turning a former Navistar truck factory in
Indianapolis into a manufacturing and logistics center. (Inside
An environmental research group says carbon emissions from
shipping could rise by 50% by 2050 if left unchecked. (Port
Philippines-based port operator International Container Terminal
Services says second-quarter container volume fell 11%. (Lloyd's
Scorpio Tankers swung to a $143.9 million net profit in the
second quarter but said demand subsided in June.
American Commercial Barge Line named Mike Ellis chief executive
following the company's restructuring under bankruptcy.
A ship pilot fell and died while trying to board a tanker at the
Port of New York and New Jersey. (Maritime Executive)
Korean Air bucked global trends with a $125.2 million
second-quarter profit as cargo revenue nearly doubled. (Korea
First-half revenue at the Deutsche Lufthansa logistics division
including Lufthansa Cargo rose 7% to $1.5 billion. (Air Cargo
U.S. authorities seized more than $16 million in methamphetamine
found entering the country from Mexico in a truck carrying
Pool sales are skyrocketing under pandemic lockdowns.
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 email@example.com
(END) Dow Jones Newswires
August 07, 2020 10:30 ET (14:30 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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