Today's Logistics Report: Scrambling for Storage; Prescriptions for Delivery; New Auto Supply Chains
December 07 2018 - 11:17AM
Dow Jones News
By Erica E. Phillips
Sign up: With one click, get this newsletter delivered to your
inbox.
Brexit is turning warehouse space into a hot commodity in the
U.K. Companies including drug maker Pfizer Inc., airplane
manufacturer Airbus SE and tobacco giant Imperial Brands PLC are
stockpiling inventory, the WSJ's Daphne Zhang reports, in case the
planned March separation from the European Union brings disruptions
at the border. Logistics operators say the rush of contingency
planning by some many companies has created shortages of warehouse
space in some areas. Airbus is turning to its suppliers to hang on
to some parts. Heineken NV and Burger King have sought additional
warehousing capacity for beer and frozen burgers. The problem is
particularly acute for food and beverage companies, as well as
pharmaceuticals, since those products have to be kept cold and
refrigerated warehouse space is harder to come by.
Drug-store chains think express delivery is the prescription for
their competition woes. Walgreens Boots Alliance Inc. and FedEx
Corp. are launching nationwide next-day delivery, the WSJ's Aisha
Al-Muslim reports, as the drugstore chain works to stave off
competition from Amazon.com Inc. and other pharmacy chains.
Amazon's acquisition of PillPack Inc. this year is driving the
change in drug distribution by giving the e-commerce giant the
ability to ship prescriptions overnight nationwide. Chains have
gone from looking for the best locations to building stronger
logistics networks. Top players are outsourcing the capability. CVS
Health Corp. enlisted the U.S. Postal Service for home-delivery
service. The new Walgreens Express service will deliver
prescriptions via FedEx as early as the next day nationwide, and on
the same day in some cities.
A new car factory is opening in Detroit, defying seemingly
intractable manufacturing trends. Fiat Chrysler Automobiles plans
the first new U.S. assembly plant for a major domestic car maker in
at least a decade, the WSJ's Christina Rogers and Adrienne Roberts
report, with plans to build sport-utility vehicles. The
announcement comes as competitor General Motors Co. is closing
factories in Ohio and Michigan that produce smaller passenger cars,
which have lost their appeal among U.S. consumers. International
trade disputes are driving auto manufacturers and their suppliers
to make products that appeal more to local markets, shortening
supply chains. The move from sedan manufacturing to SUVs in the
U.S. reflects a shift in local tastes and could foreshadow broader
changes in the automobile business as manufacturers make their
supply chains less global and more regional.
GOVERNMENT & REGULATION
The U.S. security crackdown on Chinese telecom-equipment
giantHuawei Technologies Co. may trigger upheaval in major
electronics supply chains. American manufacturers and chip makers
like Qualcomm Inc. and Broadcomm could lose access to a large-scale
customer, the WSJ's Jacky Wong writes. Optical component maker
Neophotonics generates almost half its revenue from the Chinese
company, while U.S.-listed Lumentum, Oclaro, Qorvo and Finisar have
around 10% of their revenue tied to Huawei. The company has already
taken a hit from a decision by Britain's largest wireless carrier
BT Group PLC, which this week said it would remove Huawei equipment
from the core of its network. What happened to China's ZTE could
offer a taste of what comes next: the Trump administration banned
American companies from selling to ZTE in April, and though the ban
was later lifted ZTE's Hong Kong-listed stock has yet to
recover.
QUOTABLE
IN OTHER NEWS
The U.S. trade deficit reached the highest level in 10 years in
October. (WSJ)
New orders for U.S. manufactured goods fell in October at the
steepest rate in more than a year. (WSJ)
The U.S. private sector added 179,000 jobs in November.
(WSJ)
Application filings for new unemployment benefits in the U.S.
fell by 4,000 last week. (WSJ)
The U.S. service sector expanded at a faster pace in November.
(WSJ)
Walmart Inc. and Target Corp. are pressing the Federal Reserve
to enable real-time payments. (WSJ)
Kroger Co.'s profits declined as the grocer ramps up investments
beyond traditional grocery stores. (WSJ)
Fiat Chrysler named former Amazon vice president of operations
Mark Stewart to oversee its North America business. (WSJ)
Hedge fund ESL Investments Inc. offered to buy Sears Holdings
Corp. stores and other assets out of bankruptcy court. (WSJ)
Lyft Inc. filed paperwork for a planned initial public offering.
(WSJ)
https://www.wsj.com/articles/lyft-proceeds-with-ipo-plans-1544099168
Miner Barrick Gold Corp. is selling a research-and-development
company and cutting technology staff. (WSJ)
Lenders to bankrupt Mission Coal Co. want to buy the company's
operations in Alabama and West Virginia. (WSJ)
A report says "fast fashion" strategies are flooding British
thrift stores with low-quality, cheaply-made apparel. (Sourcing
Journal)
United Parcel Service Inc. is raising rates in North America by
4.9% later this month. (Supply & Demand Chain Executive)
Logistics Property Co. bought a 252-acre industrial park near
Dallas and signed one lease with Amazon. (Dallas Morning News)
Business-to-business e-commerce platform NuOrder raised a $15
million in a new funding round. (Business Journals)
Canadian National Railway Co. offered to buy the largest port
container terminal in eastern Canada. (Financial Post)
Less-than-truckload carrier YRC Worldwide launched freight
brokerage. (Logistics Management)
Lufthansa Cargo is taking a stake in airfreight booking startup
Cargo.one. (Lloyd's Loading List)
AIT Worldwide Logistics is buying U.K. freight forwarder
ConneXion World Cargo. (The Loadstar)
Port of Hamburg terminal operator HHLA is forming a joint
venture with Hyperloop Transportation Technologies.
(MarineLink)
Three large liquefied natural gas carriers struck a joint
venture to manage LNG tankers. (Lloyd's List)
Japanese container line Ocean Network Express will add a bunker
surcharge in January for costs from impending low-sulfur emissions
rules. (Port Technology)
Boeing Co. plans to recycle carbon fiber for use by other
manufacturing industries. (Flight Global)
Chinese e-commerce giant JD.com opened an indoor vegetable farm
in Beijing. (Nikkei Asian Review)
ABOUT US
Paul Page is deputy editor of WSJ Logistics Report. Follow him
at @PaulPage, and follow the entire WSJ Logistics Report team:
@CostasParis , @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
December 07, 2018 11:02 ET (16:02 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Pfizer (NYSE:PFE)
Historical Stock Chart
From Aug 2024 to Sep 2024
Pfizer (NYSE:PFE)
Historical Stock Chart
From Sep 2023 to Sep 2024