Trouble viewing this email?  View in web browser ›

The Wall Street Journal. The Wall Street Journal.
LogisticsLogistics

Shipping Plays Hardball; Lockdowns Take a Toll; Europe Stockpiles Gas

By Paul Page

 

The Port of Oakland's Howard Terminal in 2018. PHOTO: BEN MARGOT/ASSOCIATED PRESS

A shipping industry waterfront showdown with Major League Baseball is coming to a head this summer. Regional regulators and lawmakers in California are preparing to make crucial decisions on a plan to build a ballpark on a slice of land at the Port of Oakland. The WSJ Logistics Report’s Paul Berger writes that the battle is over a site that ocean carriers, dockworkers and cargo companies argue is an important part of Oakland’s industrial and maritime business. Baseball’s Oakland Athletics and city officials say the Howard Terminal is better suited to a future that blends sports with a splashy residential and entertainment development For fans of the A’s, it’s a do-or-die plan, with the team girding to move to Las Vegas if the effort fails. Shipping interests warn of broader economic impact, with capacity constrained at a major gateway for exporters in California and beyond.
 

 
Advertisement
LEAVE THIS BOX EMPTY
 

Economy & Trade

The first deliveries of new Tesla cars to China’s Yantai Port after the company’s Shanghai factory resumed production. PHOTO: CFOTO/ZUMA PRESS

The impact of China’s stringent Covid-19 lockdowns is starting to take a toll on businesses. Some U.S. companies are warning that the lockdowns in Shanghai and other cities are denting sales, disrupting operations and putting added strain on supply chains that could be felt well into the summer. The WSJ’s Thomas Gryta writes that the restrictions could cost Apple up to $8 billion this quarter, and J.B. Hunt Transport Services said the freight carrier’s customers are worried about deliveries scheduled for July. Even if the lockdowns lift soon, the ripple effects may be felt for months as many of the cargo ships currently outside Shanghai start heading to the U.S., where port throughputs are improving after months of congestion. Industrial supplier W.W. Grainger expects the shutdowns to hit supply lines in coming months, and the company has been increasing inventory levels since last year to maintain service.

 

Quotable

“That certainly is going to make its way back into the U.S. here this summer. Our customers are concerned about the July time frame.”

— J.B. Hunt Chief Commercial Officer Shelley Simpson, on vessel backups in China
 
Share this email with a friend.
Forward ›
Forwarded this email by a friend?
Sign Up Here ›
 

Commodities

The Gaslog Gibraltar LNG tanker docked at the Isle of Grain in the U.K. PHOTO: CHRIS RATCLIFFE/BLOOMBERG NEWS

Europe is racing to stock up on oil and natural gas before it imposes tighter sanctions on Russian energy. Liquefied natural gas import terminals took in a record amount of the superchilled fuel for the time of year in April, the WSJ’s Joe Wallace reports, while oil imports from non-Russian suppliers hit their highest level since the start of the pandemic. The hunt for new supplies is a boon for energy companies and is rapidly reshaping world-wide energy transport networks. BP has sent 55 LNG cargoes into Europe over the past five months in a frenzy of activity for the firm’s gas traders, while the company’s European refineries effectively mint money as the price of fuel they sell outstrips the cost of crude they buy. U.S. LNG supplier Cheniere Energy just raised its 2022 profit forecast by some 17% after record first-quarter exports, with about 75% going to Europe.

 
Advertisement
LEAVE THIS BOX EMPTY
 

Number of the Day

15,400

Net orders for Class 8 heavy-duty trucks in April, a 28% drop from March and 56% behind April 2021 orders amid supply-chain constraints at truck makers, according FTR Transportation Intelligence.

 

In Other News

The U.S. Federal Reserve raised its benchmark interest rate by half a percentage point. (WSJ)

U.S. imports by value jumped 10.3% in March while exports increased 5.6%. (WSJ)

A gauge of U.S. service-sector activity slipped last month on labor and supply shortages. (MarketWatch)

Uber’s Freight unit showed its first measure of profitability since the ride-hailing company launched the freight brokerage. (Dow Jones Newswires)

Tupperware Brands withdrew its guidance as quarterly sales fell and logistics and raw materials costs rose. (WSJ)

American importers accuse container lines of profiteering by ignoring contract terms to seek higher prices on shipping’s spot markets. (New York Times)

Tesla is adding a second assembly line near its Shanghai factory that will make the city the auto maker’s largest export hub. (South China Morning Post)

Norman Mineta, a longtime transportation and infrastructure advocate in Congress who was the longest-serving secretary of Transportation, died at 90. (Washington Post)

The International Air Transport Association says global airfreight demand fell 5.2% in March. (Air Cargo News)

TuSimple and Union Pacific are pushing back plans to begin freight movements in southwestern states with autonomous trucks. (Trains)

Amazon plans to export $20 billion worth of goods from India by 2025, up from its initial $10 billion goal. (TechCrunch)

Indian e-commerce company Flipkart will open its eKart Logistics arm to businesses outside its own platform. (Financial Express)

U.K. online clothing retailer Boohoo warned that revenue growth might halt the first half of the year. (Bloomberg News)

A backup at South Caroline’s Port of Charleston that had reached 27 container ships is down to five vessels. (Journal of Commerce)

First-quarter gross profit at Cosco Shipping Ports increased 31% to $80.9 million. (Port Technology)

Industrial real estate construction in the U.S. rose 48% year-over-year in the first quarter as the national vacancy rate fell to a 27-year low. (Supply Chain Quarterly)

Paints supplier Sherwin-Williams is deploying a private truck fleet to speed up raw materials deliveries. (Supply Chain Dive)

A French startup managed by twin brothers is ferrying wine and chocolate shipments across the Atlantic in a cargo sailboat. (New York Post)

 

About Us

Paul Page is editor of WSJ Logistics Report. Write to him at paul.page@wsj.com.

Follow the WSJ Logistics Report team: @PaulPage, @pdberger. and @LydsOneal. Follow the WSJ Logistics Report on Twitter at @WSJLogistics.

 
Desktop, tablet and mobile. Desktop, tablet and mobile.
Access WSJ‌.com and our mobile apps. Subscribe
Apple app store icon. Google app store icon.
Unsubscribe   |    Newsletters & Alerts   |    Contact Us   |    Privacy Policy   |    Cookie Policy
Dow Jones & Company, Inc. 4300 U.S. Ro‌ute 1 No‌rth Monm‌outh Junc‌tion, N‌J 088‌52
You are currently subscribed as [email address suppressed]. For further assistance, please contact Customer Service at sup‌port@wsj.com or 1-80‌0-JOURNAL.
Copyright 2022 Dow Jones & Company, Inc.   |   All Rights Reserved.
Unsubscribe