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Laboring Toward a Longshore Deal; Economies of Scale at the Storefront By Paul Page
Contract talks with unionized dockworkers are underway again with at least one positive sign for shippers: The two sides appear to be working toward an agreement. The dockworkers' union and employers returned to the bargaining table and met deep into the night, with barely a week to go before the deadline for a walkout at Atlantic and Gulf coast gateways.
The WSJ Logistics Report's Paul Berger writes that the two sides resumed negotiations after representatives had been meeting informally in recent days in hopes of laying down a framework for a possible accord. That's a break from the heated rhetoric that has been hovering over the talks, even with the longshore union and industry executives still divided over automation on the docks.
People familiar with the talks say the International Longshoremen's Association went into the new round of negotiations looking to require that employers hire more people to handle the semi-autonomous cranes that are used at some ports. That would mark a rollback for sites such as the Port of Virginia, which has 116 automated stacking cranes in its operations.
Big container lines and terminal operators want the productivity gains from that equipment. They say that's one reason they agreed to a big 62% wage increase for dockworkers in the settlement that helped end a three-day walkout in October.
The U.S. added Cosco Shipping, Sinotrans and China International Marine Containers to a list of companies tied to China's military. (WSJ) China's Shandong Port Group banned U.S.-sanctioned tankers from calling at its ports. (Reuters) CONTENT FROM: PENSKE Gain AI. Gain Ground with Penske.
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Learn More Quotable Supply Chain Strategies
The hold that big merchants have on the American retail market is getting stronger. The three biggest retailers by revenue in the U.S.-Costco, Walmart and Amazon-have scaled up their share of total retail sales to 17% and accounted for roughly 57% of the country's retail sales growth over the past three quarters. The WSJ's Jinjoo Lee writes in a Heard on the Street column that the casualties are supermarkets, which have seen their share of grocery sales shrink rapidly , along with dollar stores.
The consolidation has crucial implications for retail supply chains, where the scale of those behemoths gives them stronger buying power for everything from trucking services to finished goods. Costco's warehouse-style model keeps its operating costs low and gives it greater negotiating leverage with suppliers. The retailers' drive for size might also push transport providers and suppliers to look for similar economies of scale through consolidation of their own.
Brick-and-mortar apparel resale stores are flourishing in the U.S. (Business of Fashion) Number of the Day In Other News
A measure of U.S. services activity increased more than expected last month. (WSJ)
A barometer of prices that businesses pay for supplies rose to a nearly two-year high at the end of 2024. (MarketWatch)
Canada's exports increased 2.2% in November while imports expanded 1.8%. (WSJ)
Autonomous-truck tech company Aurora struck a deal with AI chip giant Nvidia and parts supplier Continental to forge mass production of driverless trucks. (MarketWatch)
U.K. lawmakers criticized Shein for refusing to answer questions at a hearing on alleged forced labor in the online apparel seller's supply chain. (WSJ)
Workplace products maker Cintas is looking to take over uniform supplier UniFirst with a $5.1 billion bid. (WSJ)
McDonald's is scrapping diversity targets for its employees and suppliers. (WSJ)
China's Zijin Mining plans to start producing lithium in the Democratic Republic of Congo early next year. (South China Morning Post)
Trucking companies closed terminals and suspended operations as a fierce winter storm hit an area from Missouri to Maryland. (Trucking Dive)
Expedited trucker Forward Air is considering a possible sale among strategic alternatives under pressure from shareholders. (Commercial Carrier Journal)
Regional less-than-truckload carriers are leading a new wave of merger-and-acquisition activity in the sector. (Journal of Commerce)
A new cargo reservation system at Canada's Port of Vancouver is triggering heavy penalties and frustration among port truckers. (Vancouver Sun)
Freight broker BlueGrace Logistics acquired online transportation services provider FreightCenter. (Logistics Management)
About Us
Paul Page is editor of WSJ Logistics Report. Reach him at [paul.page@wsj.com].
Follow the WSJ Logistics Report team: @PaulPage , @bylizyoung and @pdberger . Follow the WSJ Logistics Report on X at @WSJLogistics .
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
January 08, 2025 07:03 ET (12:03 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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