Hanjin Shipping : Today's Top Supply Chain and Logistics News From WSJ

By Paul Page Sign up:With one click, get this newsletter delivered to your inbox. The logistics complications from the Hanjin Shipping Co. bankruptcy aren’t going away just because the goods have been unloaded. Southern California’s ports are clogged with empty containers left behind after the South Korean carrier’s vessels dropped off their cargo and steamed away quickly, WSJ Logistics Report’s Erica E. Phillips writes, leaving creditors and confusion in their wake. The thousands of containers are a mess, but companies around the ports of Los Angeles and Long Beach say the bigger problem is that many are stacked on the truck-trailers, or chassis, that are needed to move loaded boxes from the docks to distribution centers. The ports are trying to get the boxes out and local logistics companies are scrambling to find room for them in an already-congested area. At least one company is offering to take empties, but the transport cost is about double the price to ship a container from Shanghai to the U.S. West Coast.Wal-Mart Stores Inc. is pivoting even harder toward e-commerce as it tries to stave off Amazon.com Inc. The world’s biggest retailer is undertaking a fundamental shift in its business, investing more heavily in online sales capabilities, speeding up work on fulfillment centers focused on web sales and scaling back plans for more super-sized stores. Wal-Mart has already invested billions in online efforts, the WSJ’s Sarah Nassauer reports, and the company says it will now direct more of its $11 billion in capital spending toward e-commerce in what Chief Executive Doug McMillon says is “a transformative period” for the retailer. The strategy is a response to a transformation in retail, and especially to competition for sales dollars from Amazon, and it’s changing the way Wal-Mart maps out its future. The company soon expects to have 10 big distribution centers dedicated to e-commerce, and it now plans to build 35 of its big Supercenter stores in fiscal year 2018, down from 69 last year.The only thing holding back more sales of Chinese-made cars in the U.S. may be a thin supply chain. General Motors Co. is getting a surprising boost from its decision to ship made-in-China editions of its Buick Envision to U.S. dealerships, the WSJ’s Mike Colias reports, potentially opening a new manufacturing and importing front for U.S. car makers. The No.1 U.S. auto maker started shipping the Chinese-built automobile to North American dealerships in late spring, but moved carefully with relatively small numbers of the vehicles. Dealers now are clamoring for more after rapid sales of the $40,000 sport-utility vehicle. The made-in-China label is a new one for the U.S. auto industry, which has invested in China even amid persistent concerns over quality. The sales this year come as criticism of auto companies for manufacturing in Mexico mounts in the presidential campaign. But GM dealers report little concern from shoppers about where the Envision was made, suggesting the strong sales will lead to a boost in production and busier distribution channels.ECONOMY & TRADEA new global agreement to cap carbon emissions from international aviation could have a significant impact on the market for air freight and all-cargo aircraft in the coming years. Members of the International Civil Aviation Organization struck the agreement to bring aviation under a carbon cap for the first time, the WSJ’s Robert Wall reports. The pact was reached after a more sweeping climate treaty reached the threshold to take effect in November. Because of the cross-border nature of international transport, airlines and the shipping industry weren’t included in that Paris deal. The aviation pact will cap carbon-dioxide emissions from international flights at 2020 levels, and become mandatory in 2027. The limits may prove especially costly to the segment of the international air freight business that depends on older and reconditioned aircraft, and used jets that emit more pollutants are likely to slide in value if they fall behind the global standards.Is globalization hitting a wall? That’s a top concern of global finance ministers and central bankers gathering in Washington this week at meetings of the International Monetary Fund and the World Bank amid signs of broad retrenchment in trade, report the WSJ’s Ian Talley and William Mauldin. Last year’s $646 billion in foreign direct investment in rich economies was down 40% from before the financial crisis, and the World Trade Organization recently slashed its forecast for growth in global trade volumes this year to 1.7%, the slowest pace since 2007. Imports among the world’s 20 largest economies have fallen as a share of their gross domestic product for four straight years. Facing tepid economic growth, governments are issuing new regulations favoring domestic producers and China, with its own growth slowing, has delayed planned reforms. One company, U.K. online clothing retailer ASOS PLC, abandoned a venture in China after opening a warehouse in Shanghai and finding regulations more onerous than expected.QUOTABLEIN OTHER NEWSPorts and other sites along the U.S. Atlantic Coast from Florida to South Carolina shut down as Hurricane Matthew approached the region. (WSJ)Oil prices climbed past $50 a barrel as a sharp decline in inventories raised hopes the market is working through its supply glut. (WSJ)The number of Americans applying for first-time unemployment benefits fell back to a four-decade low over the past week. (WSJ)Multinationals are unlikely to increase their use of China’s yuan even though the IMF has named it a reserve currency. (WSJ)Analysts at S&P Global are backing an idea floating in Congress to use repatriated foreign profits to fund U.S. infrastructure improvements. (WSJ)The United Nations warned that slowing overseas business investment threatens the growth of trade and the wider economy. (WSJ)Theranos Inc. will shut down its blood-testing facilities and shrink its workforce by more than 40% in a retreat from its business of selling low-price blood tests directly to consumers. (WSJ)The Japan-based parent of 7-Eleven will expand its profitable convenience-store business in North America and seek operators to acquire. (WSJ)Perdue Farms Inc. eliminated all antibiotics from its chicken supply. (WSJ)Japan’s IHI Corp. will build a compressor factory in Turkey as a base for exports to Europe and the Middle East. (Nikkei Asian Review)German factory orders increased 1% in August. (Agence France-Presse)California exports jumped 6.7% in August from a year ago, the first monthly gain in more than a year. (Sacramento Bee)Federal highway regulators signed off on Rhode Island’s proposal for separate tolls for trucks, a plan the trucking industry has opposed. (Providence Journal)The Georgia Ports Authority is adding 100 acres to its auto-processing terminal in a bid to raise its profile in car imports. (Florida Times-Union)XPO Logistics Inc. will take over a 571,000-square-foot distribution center north of Baltimore. (Baltimore Sun)Norfolk, Va., will give Maersk Line Ltd. $350,000 over five years as an incentive to keep its U.S. headquarters in the city. (Virginian-Pilot)E-commerce fraud is up 15% this year, according to an Experian report that details ZIP Codes with the greatest shipping and billing fraud. (Internet Retailer)ABOUT USPaul Page is deputy editor of WSJ Logistics Report. Follow him at @PaulPage, and follow the entire WSJ Logistics Report team: @brianjbaskin, @lorettachao, @RWhelanWSJ and @EEPhillips_WSJ, and follow the WSJ Logistics Report on Twitter at @WSJLogistics.Subscribe to this email newsletter by clicking here: http://on.wsj.com/Logisticsnewsletter .Write to Paul Page at paul.page@wsj.com

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