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☆ Freight Rebound Hopes Are Fading Under an Inventory Glut
▼ + stars: | 2023-03-22 | by ( Liz Young | Paul Berger | ) www.wsj.com time to read: 1 min

Container ships on March 8 at the Port of Oakland, one of several U.S. ports to report double-digit declines in imports to start 2023. Freight companies are dialing back expectations that demand will recover strongly in the second half of the year amid growing economic uncertainty and signs retailers are growing more guarded about placing big orders in 2023. “There was more optimism a few months ago than there is now,” said Paul Svindland , chief executive of Bensenville, Ill.-based logistics provider STG Logistics Inc.

☆ Labor Tensions Rise in Stalled West Coast Port Contract Talks
▼ + stars: | 2023-03-20 | by ( Paul Berger | ) www.wsj.com time to read: 1 min

Unionized dockworkers at the ports of Los Angeles and Long Beach have stopped staggering work shifts during mealtimes, leading to delays in cargo operations and backups of trucks at terminal gates. Tensions in long-running contract talks at West Coast ports are worsening, with employers accusing unionized dockworkers of slowing cargo handling at the ports of Los Angeles and Long Beach, the nation’s busiest gateway for imported consumer goods. The sharp rhetoric marks a break from a longstanding agreement to maintain public silence on the negotiations, which began last spring. The two sides appear to be no closer to bridging the gap on their disagreements, pointing to the possibility of deeper disruptions to U.S. trade flows.

☆ Companies Are Balking at Spending for Green Freight Transport
▼ + stars: | 2023-03-16 | by ( Paul Berger | ) www.wsj.com time to read: 1 min

During the past two years, DHL has spent over $460 million on measures such as green aviation fuels and electric vehicles, according to company data. Freight operators are rolling out a growing array of options for shippers looking to reduce pollution, from low-carbon aviation and marine fuels to electric trucks. But some shipping executives say companies are proving reluctant to pay the higher prices for alternative fuels and zero-emissions vehicles that can easily double or triple transport costs.

☆ Shipping Platform Freightos Slices Cargo Growth Forecast
▼ + stars: | 2023-03-13 | by ( Paul Berger | ) www.wsj.com time to read: 1 min

Containers atop a ship at the Port of Oakland. Freightos Ltd. is slashing its growth forecasts as sputtering cargo volumes and faltering freight rates take a toll on the online freight booking platform in its first financial report since going public early this year through a merger with a special-purpose acquisition company. The Israel-based company, one of an array of supply-chain specialists that thrived through a period of pandemic-driven logistics turmoil and rising shipping costs, said it now expects revenue to grow 15% to 21% this year over 2022, down from an earlier forecast of 87% growth.

☆ Logistics Giant Kuehne + Nagel Seeks Expansion
▼ + stars: | 2023-03-07 | by ( Paul Berger | ) www.wsj.com time to read: +5 min

Kuehne + Nagel CEO Stefan Paul. Photo: Kuehne + NagelAs a forwarder, Kuehne + Nagel helps companies move freight around the world by ocean, air and land and is a dominant player in the automotive, industrial, retail, aerospace, healthcare and high-tech industries. What do you see as potential growth areas for Kuehne + Nagel in the contract logistics space? Does that make it easier for a company like Kuehne + Nagel to jump in? How would that affect Kuehne + Nagel?

☆ U.S. Importers Seize on New Shipping Rules to Fight Late Fees
▼ + stars: | 2023-03-03 | by ( Paul Berger | ) www.wsj.com time to read: +6 min

U.S. importers are fighting millions of dollars in fees imposed by the world’s largest ocean carriers with the help of a new federal law and a newly emboldened regulator. He said his company, Lion Energy LLC, which imports about 800 containers a year, felt it had little power to dispute the charges. Now, Mr. Frey and hundreds of shippers like him are turning to rules set out in the Ocean Shipping Reform Act, which passed Congress in June. The new shipping law endorsed an FMC rule published in 2020. But shippers are still able to challenge fees that predate the law under earlier FMC rules.

☆ Chief of Digital Freight Startup Transfix Steps Down
▼ + stars: | 2023-03-02 | by ( Paul Berger | ) www.wsj.com time to read: +3 min

Digital freight startup Transfix Inc. said on Thursday that Chief Executive Lily Shen was stepping down and would be succeeded by the company’s co-founder and chief technology officer, Jonathan Salama. “I understand the challenges, and Lily and I have a strong plan for the future.”Lily Shen has resigned as chief executive of digital freight broker Transfix. Jonathan Salama is a co-founder and the new chief executive of Transfix. In place of the SPAC, G Squared and another Transfix backer, New Enterprise Associates Inc., led a private funding round. She became chief operating officer the same year and in 2020 took over as chief executive.

☆ Supreme Court Weighs Future of New York Harbor Commission
▼ + stars: | 2023-03-01 | by ( Paul Berger | Jess Bravin | ) www.wsj.com time to read: 1 min

New Jersey officials argue that most cargo activity has moved from the piers of New York City to terminals in their state, such as this one in Elizabeth. The U.S. Supreme Court hears arguments Wednesday on the fate of an obscure agency that polices organized crime and fair hiring at the East Coast’s busiest port. The states of New York and New Jersey set up the Waterfront Commission of New York Harbor in 1953, prompted by a 1949 newspaper investigation into union corruption that won a Pulitzer Prize for reporter Malcolm Johnson and inspired the Marlon Brando picture “On the Waterfront.”

☆ Wayfair Lost 5 Million Customers and $1.3 Billion Last Year
▼ + stars: | 2023-02-23 | by ( Paul Berger | ) www.wsj.com time to read: 1 min

Wayfair Inc.’s sales surged early in the Covid-19 pandemic as people splurged on home furnishings. Wayfair Inc. lost 5 million customers in 2022, shrinking the online furniture retailer’s shopper count to near its size before the Covid-19 pandemic triggered a consumer-spending surge. Revenue at the Boston-based company slid 4.6% in the final three months of last year from a year ago to $3.1 billion, for a net loss of $351 million.

☆ TFI Stake in Trucker ArcBest Sparks Acquisition Speculation
▼ + stars: | 2023-02-22 | by ( Liz Young | Paul Berger | ) www.wsj.com time to read: +4 min

TFI in 2021 became one of the top carriers in the U.S. less-than-truckload sector when it bought United Parcel Service Inc.’s freight business for $800 million. TFI CEO and President Alain Bédard said on the Feb. 6 earnings call that TFI is looking for opportunities to work with ArcBest. TFI executives said they see ways to save money working together with ArcBest, analysts at Cowen wrote in a Feb. 14 note summarizing a meeting they had with TFI management. The Cowen analysts wrote TFI is well placed to take over ArcBest’s unionized workforce because it already works with the Teamsters union at TForce Freight. ArcBest shares are up about 14% since TFI disclosed its stake.

☆ Supply-Chain Headaches Ease for Many Companies
▼ + stars: | 2023-02-21 | by ( Paul Berger | Liz Young | ) www.wsj.com time to read: +4 min

Supply-chain snarls are fading from among the top challenges facing some U.S. companies as freight congestion eases, shipping costs fall and factories in Asia are freed from Covid-19 lockdowns. The rising costs and lengthy transit times pushed some companies to cut back on slower-selling products and raise prices. Today, freight congestion has cleared and ocean shipping costs have fallen close to prepandemic levels. Mr. Bergman said the decline was “partially offset by 40 basis points of favorable supply-chain impact driven by lower freight costs, which more than offset product cost headwinds during the quarter.”Some companies said they still have a way to go before supply-chain challenges are resolved. And Ford Motor Co. Chief Executive Jim Farley told a virtual town hall on Feb. 9 that supply-chain problems were continuing to hamper the company’s progress.

☆ Retailers Hope to Bargain for Lower Ocean-Freight Rates
▼ + stars: | 2023-02-14 | by ( Paul Berger | ) www.wsj.com time to read: +5 min

Richard Galanti, chief financial officer of Costco Wholesale Corp. , said lower freight rates should lead to price cuts at the members-only retailer, which imports more than 200,000 containers a year from Asia. An International Monetary Fund study found that when ocean-freight rates double it causes inflation to rise by 0.7 percentage point. Jonathan Ostry, a Georgetown University professor and a co-author of the study, said cutting shipping rates in half should reduce inflation by the same amount. In the ocean-shipping spot market, where importers book containers without a contract, rates have dropped to $1,000 on some trans-Pacific routes. But they say lower ocean shipping expenses will help in steadying prices.

☆ Relief Efforts in Turkey, Syria Face Logistical Hurdles
▼ + stars: | 2023-02-07 | by ( Paul Berger | ) www.wsj.com time to read: +4 min

Aid groups and logistics operators worldwide are ramping up urgent relief efforts for victims of the earthquakes in Turkey and Syria but say moving supplies through the region’s devastated infrastructure will be a major challenge. Mr. Hovey said Direct Relief plans to fly supplies to airports at Istanbul in northwestern Turkey and at Adana in southeastern Turkey, close to the disaster zone. Many U.S. charities without aid operations in Syria and Turkey are now planning relief efforts, said Kathy Fulton, executive director of American Logistics Aid Network, which coordinates aid efforts among logistics operators following disasters. Aid groups are mostly focused on getting relief to Turkey and Syria by plane. He said the demand for air charters is also starting to make it harder and more expensive to secure space for aid and relief efforts in other parts of the world, such as Ukraine.

☆ U.S. East Coast Port Workers Begin Early Contract Talks
▼ + stars: | 2023-02-07 | by ( Paul Berger | ) www.wsj.com time to read: +3 min

The International Longshoremen’s Association, which represents East Coast and Gulf Coast dockworkers, in September asked its locals to open talks with regional employer groups, said James McNamara, an ILA spokesman. A spokesman for the Pacific Maritime Association, which represents carriers and terminal operators on the West Coast, declined to comment. The Port of Houston and Georgia’s Port of Savannah have also benefited from freight diversions away from the West Coast. The West Coast labor talks have significant hurdles to overcome once the two sides resolve their regional disagreements, according to shipping industry officials. Shipping industry officials say the talks covering Gulf Coast and East Coast ports face fewer stumbling blocks.

☆ Freight Broker C.H. Robinson Digs in Against Activist Investor
▼ + stars: | 2023-02-03 | by ( Paul Berger | ) www.wsj.com time to read: +4 min

Robinson Worldwide Inc. is standing its ground against an activist investor pushing for a quick and wide-ranging overhaul of the country’s biggest freight broker as the company battles declining freight demand and growing competition. Robinson’s international freight forwarding business, a central goal of investor Ancora Holdings Group LLC as it seeks an overhaul of the business. Robinson executives said on the Wednesday earnings call that the global forwarding arm, which moves freight by air and ocean, is essential to the company’s success. Robinson is by far the largest player in the U.S. domestic freight brokerage market that matches freight shippers with available trucks. It is also among the top two U.S.-based companies in the global forwarding market that transports cargo by air and ocean.

☆ Shipping Platform Freightos Goes Public in SPAC Deal
▼ + stars: | 2023-01-26 | by ( Paul Berger | ) www.wsj.com time to read: +4 min

Online freight booking platform Freightos Ltd. started trading shares publicly on Thursday through a merger with a special-purpose acquisition company, just as the booming shipping demand that helped fuel the digital startup’s growth shows signs of weakening. The company has seen booming business during the pandemic for its platform as shipping demand skyrocketed while tight capacity and supply-chain disruptions sent freight rates soaring. The Freightos platform operates like an Expedia or Travelocity for freight, allowing companies with goods to ship to compare prices and book space on planes and ships. In a note to new shareholders on Freightos’ website Thursday, Zvi Schreiber, the company’s chief executive and chairman, recommended that investors view Freightos as a long-term investment. Ezra Gardner, Gesher’s chief executive and a Freightos board member, said the SPAC gave Freightos more control than an IPO over whom the company’s main investors would be.

☆ Wayfair Is Laying Off 1,750 Workers
▼ + stars: | 2023-01-25 | by ( Paul Berger | Sarah Nassauer | ) www.wsj.com time to read: 1 min

Wayfair aggressively added staff during the pandemic to expand its warehouse operations and customer-service teams. Wayfair Inc. is laying off about 1,750 workers, or 10% of its workforce, as the online furniture seller confronts shrinking sales after a pandemic-driven boom. Wayfair co-founder and CEO Niraj Shah in an email to staff Friday morning said the company had grown too big.

PREVIEWDave Edwards, the chief executive at Greenville-Spartanburg, said just over a decade ago his airport had no international air cargo operations. BMW today accounts for about a quarter of Greenville-Spartanburg’s roughly 15 international cargo flights a week. Air cargo volumes fell through most of last year as manufacturers and retailers pulled back on orders because of slowing consumer spending. Rockford, about 70 miles from Chicago O’Hare International Airport, has become one of the most successful regional airports for cargo. It is a hub for United Parcel Service Inc. and has attracted air operations for companies including Amazon.com Inc., DSV and A.P.

☆ Prologis Says Warehouse Demand Remains Strong in Slowing Economy
▼ + stars: | 2023-01-20 | by ( Paul Berger | ) www.wsj.com time to read: +3 min

Prologis Inc., the world’s largest developer of logistics properties, is bullish about warehouse demand this year despite signs of an economic slowdown. Executives at San Francisco-based Prologis said Wednesday they remain cautious about building new facilities as the economy wavers. But they said vacancy rates remain near record lows and that much of the leasing activity for this year is already secured or underway. Warehouse demand peaked last year, as average national vacancy rates plummeted to near 3% and reached close to 1% in Southern California. Average occupancy in Prologis’s owned and managed portfolio ticked up to 98% in the fourth quarter from 97.7% in the prior quarter.

☆ Wayfair Is Preparing to Lay Off More Than 1,000 Workers
▼ + stars: | 2023-01-20 | by ( Paul Berger | Sarah Nassauer | ) www.wsj.com time to read: 1 min

Wayfair Inc. is preparing to lay off more than 1,000 workers, according to people familiar with the matter, as the online furniture seller confronts shrinking sales after a pandemic-driven boom. Wayfair’s restructuring, the second round of layoffs in six months, is expected to affect more than 5% of the workforce at the Boston-based company. Wayfair said in August it was cutting about 870 jobs, or about 5% of its global workforce.

☆ C.H. Robinson Reaches Standstill Agreement With Activist Investor
▼ + stars: | 2023-01-10 | by ( Paul Berger | ) www.wsj.com time to read: +4 min

Robinson Worldwide Inc. has reached an agreement to work with its activist investors as analysts said new board member Jim Barber would be a strong candidate to lead the company. Robinson’s board. Robinson’s then board chair as interim CEO as the board said it would start an immediate search for a permanent successor. Robinson’s board, said Monday that Mr. Biesterfeld’s firing was a board decision. Robinson has retained executive search firm Russell Reynolds Associates Inc. to find a permanent chief executive.

☆ Flexport Names Former Amazon Executive as President
▼ + stars: | 2023-01-05 | by ( Paul Berger | ) www.wsj.com time to read: +2 min

com Inc. executive, is joining Flexport Inc. as the digital-focused freight forwarder boosts its growth ambitions under the leadership of former Amazon consumer chief executive Dave Clark. The San Francisco-based company named Ms. Carlson president and chief commercial officer, overseeing sales, marketing and communications, Flexport said Thursday. Ms. Carlson specializes in cloud computing. Mr. Clark in September took on the role of Flexport co-CEO alongside the company’s founder and CEO Ryan Petersen. Mr. Clark has hired former Amazon employees including public-relations executive Kelly Cheeseman, logistics executive Parisa Sadrzadeh and human-resources executive Darcie Henry.

☆ Geodis’s Marie-Christine Lombard Sees Global Forces Continuing to Reshape Trade Flows
▼ + stars: | 2022-12-28 | by ( Paul Berger | ) www.wsj.com time to read: +6 min

Newsletter Sign-up The Logistics Report Top news and in-depth analysis on the world of logistics, from supply chain to transport and technology. MS. LOMBARD: The supply chain used to be quite seamless and fluid. The world order has a huge impact on the supply chain and its stability. The difference is that the supply chain itself was not disrupted. The entire supply chain is being rethought and recalibrated and re-costed.

☆ Retailers Pull Back From Using Chartered Cargo Ships
▼ + stars: | 2022-12-23 | by ( Paul Berger | ) www.wsj.com time to read: +5 min

Retailers are moving away from using chartered ships to get around pandemic-triggered disruptions now that congestion at ports has cleared and pressures in supply chains have eased. A representative for Home Depot said it stopped using chartered vessels earlier this year as space opened up in global shipping. Party City started booking space on chartered vessels in mid-2021 in advance of Halloween, its busiest time of year, said Bruce Dzinski, Party City’s director of international transportation. Will Harwood, a spokesman for Lidl, said Tailwind owns two container ships and can carry additional cargo on other chartered vessels. Most other companies, like Home Depot and Costco, relied on third-party companies to operate chartered ships.

☆ U.S. Container Imports Are Plummeting to Close the Year
▼ + stars: | 2022-12-15 | by ( Paul Berger | ) www.wsj.com time to read: +4 min

Big U.S. ports are reporting steep declines in inbound container volumes for November, signaling a downturn in goods imports is accelerating and adding to concerns over a deeper slowdown in 2023. The ports also handled about 98,000 fewer inbound boxes last month than in November 2019 and imports have been below prepandemic levels since September. Port of Los Angeles Executive Director Gene Seroka said the U.S. is seeing a slowing of imports. They also diverted goods to Gulf Coast and East Coast ports due to fears of a work slowdown as West Coast dockworkers negotiate a new multiyear labor agreement. The downturn is reaching East Coast ports, which have seen relatively strong trade as companies shipped around California’s congested gateways.

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