By Paul Page
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Amazon.com Inc.'s latest effort to take command of its
fulfillment operations involves people -- lots and lots of people.
The e-commerce giant is holding what's effectively a national jobs
fair next week to fill 50,000 new positions at distribution centers
and sorting sites in the U.S., the WSJ's Laura Stevens reports,
giving the company an early start in setting up for the holiday
rush. It also puts Amazon on track to swell its U.S. workforce to
around 300,000 by next year, up from 30,000 in 2011 and closer to
the payrolls of the big express parcel carriers, United Parcel
Service Inc. and FedEx Corp. The expansion is a result of the rapid
growth in online sales and the crunch around the holidays as
retailers and logistics scramble to handle a growing flood of
packages. Finding the hires is proving tougher, with warehouse
employment nearing a landmark 1 million U.S. jobs, according to
federal figures, and Amazon looks like it is trying to corner the
market for those workers.
Norfolk Southern Corp. may be the winner so far in rival CSX
Corp.'s drive to remake its freight rail operations. The railroad
says it is winning over shippers in its eastern U.S. network just
as CSX is struggling with service problems as the railroad cuts
costs and streamlines its network, the WSJ's Paul Ziobro reports.
The changes have disrupted operations for shippers, who Mr.
Harrison says should brace for "a little pain and suffering."
Shifting volumes from one railroad to another is not easy, but
Norfolk Southern says it has seen "some business move over," and
experts say others are looking for changes as they set long-term
projects. Norfolk Southern says it will take the business at the
right price, and that seemed to be the case in the second quarter.
The railroad posted a 23% increase in profit to $497 million on a
7% gain in revenue.
China's e-commerce companies are looking for new growth drivers
as the country's torrid online expansion loses momentum.
Beijing-based JD.com is trying to maintain growth by building on
its logistics network with faster deliveries and adding to its
product line to appeal to more affluent consumers, the WSJ's Liza
Lin and Alyssa Abkowitz report, even as bigger rival Alibaba Group
Holding Ltd. rolls out its own international expansion plan. They
are responding to changes in their core market: China's e-commerce
business is expected to grow 19% this year, according to McKinsey
& Co., down sharply from 74% growth in 2011. JD.com has
outpaced the growth, building up its gross merchandise volume 40%
in its first quarter ended March 31. With about twice JD.com's
number of users, Alibaba and its big online shopping sites remain
dominant in China. Some analysts believe bigger moves by the
smaller competitor could trigger a price war, with Alibaba rolling
out liberal discounts to retain customers.
E-COMMERCE
The internal combustion engine could be losing steam. The U.K.
is planning to ban the sale of cars powered by traditional engines
by 2040, joining other European regulators in a bold push toward
populating roads with electric cars. The initiative follows a
similar move by France and efforts by several European cities to
ban or restrict diesel engines, the WSJ Eric Sylvers and John D.
Stoll report, even as electric cars remain unpopular in the mass
market. With their timeline, British regulators hope to spur more
development and take a role in the global tug of war over the power
behind transportation. One a global scale, the U.K. and France pale
in car sales compared to the U.S. and China -- which together sell
nearly half of the world's light vehicles. But China is working to
dissuade purchases of conventional cars while funding development
of a domestic supply chain for alternative technology, an effort
that could change the landscape both in the country and abroad.
QUOTABLE
IN OTHER NEWS
The U.K. economy grew a subdued 0.3% in the second quarter.
(WSJ)
U.S. new-home sales rose slightly in June in a market marked by
severe supply constraints. (WSJ)
Foxconn Technology Group named Wisconsin as the site of its
first factory in a planned $10 billion investment in U.S.
manufacturing. (WSJ)
Boeing Co. swung to a $1.76 billion second-quarter profit as the
company clamped down on the cost of building its jets. (WSJ)
Malaysia's Petronas energy company is ending its
multibillion-dollar plan to build a natural-gas export terminal on
Canada's west coast. (WSJ)
California Gov. Jerry Brown signed into law a cap-and-trade
program that requires businesses there to obtain permits for
greenhouse-gas emissions. (WSJ)
Matthew Wadiak, a founder of Blue Apron Holdings Inc., is
stepping down from executive leadership after the company's rocky
first month on the market. (WSJ)
Farm equipment manufacturer Agco Corp. will buy the Precision
Planting LLC high-tech planting equipment line from Monsanto Co.
(WSJ)
Whole Foods Market Inc.'s same-store sales fell 1.9% in the
latest quarter, extending a streak going back two years. (WSJ)
The board of Snapdeal agreed to accept a takeover offer of up to
$950 million from rival Indian e-commerce company Flipkart.
(Economic Times)
Japan Display, a supplier of panels to Apple Inc., is seeking
nearly $900 million in new bank aid. (Nikkei Asian Review)
Japan's "K" Line is selling its troubled SAL Heavy Lift business
to Harren & Partner of Germany. (Lloyd's List)
Orders for new shipping vessels have slipped this year but
tanker and bulk cargo orders have grown sharply. (American
Shipper)
Orders for newbuild ocean vessels have slipped during the first
half of 2017, despite orders for bulkers and tankers rising during
the period, according to newly-released data from ship valuation
service VesselsValue.
Covenant Transportation Inc. says freight demand is growing this
summer following a 60% decline in the trucker's second-quarter net
profit. (Chattanooga Times Free Press)
Online furniture retailer Wayfair plans to open a distribution
center in the burgeoning logistics area outside Dallas. (Dallas
Morning News)
Discount grocery chain Aldi will open a distribution center in
Goodyear, Ariz., as it expands into the U.S. southwest. (Arizona
Central)
Minnesota-based Supervalu Holdings will pay $61 million to buy a
large distribution center in Joliet, Ill., owned by bankrupt
Central Grocers. ( Chicago Tribune)
Singapore's manufacturing output jumped 13.1% in June, the 11th
straight monthly gain. (Straits Times)
Amazon is preparing to launch services in Singapore, its first
entry into Southeast Asia. (TechCrunch)
Dutch ship operator Samskip will acquire the assets of
Norway-based cargo carrier Samskip. (Ship& Bunker)
The family-owned trucking company linked to the deadly case of
immigrant smuggling in Texas has a history of safety and tax
violations and financial problems. (Associated Press)
A nonprofit group is suing the Trump administration, saying it
illegally convened an infrastructure advisory council without
public disclosures. ( New York Times)
A study commissioned by DHL says supply chain companies face "a
potential crisis" in recruiting qualified workers. (Lloyd's Loading
List)
ABOUT US
Paul Page is deputy editor of WSJ Logistics Report. Follow him
at @PaulPage, and follow the entire WSJ Logistics Report team:
@brianjbaskin , @jensmithWSJ and @EEPhillips_WSJ. Follow the WSJ
Logistics Report on Twitter at @WSJLogistics.
Write to Paul Page at paul.page@wsj.com
(END) Dow Jones Newswires
July 27, 2017 07:07 ET (11:07 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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