Today's Logistics Report: Planning Vaccine Delivery; Germany's Export Cloud; Assembling Ford Trucks
19 September 2020 - 12:11AM
Dow Jones News
By Paul Page
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Plans for distributing a Covid-19 vaccine remain a work in
progress as the shots move closer to approval. State officials and
medical-supply experts say critical issues weren't resolved in the
federal government's release of two vaccine-distribution plans this
week. The WSJ's Peter Loftus and Jared S. Hopkins report the slow
ramp-up for a distribution strategy could hamper efforts to get
doses quickly to health-care workers and others at high risk of
infection. Some states might not initially get all of the supplies
they were expecting, or have the freezer capacity needed to safely
store their drug allocation.
Transportation and logistics companies have been preparing for
the potential sudden rush to distribute doses through
temperature-controlled networks with little margin for error. The
federal program through Operation Warp Speed sketches out
distribution of any vaccine that regulators authorize for use,
including starting shipments within 24 hours of the green light.
But medical experts say it doesn't detail how cold-storage for some
vaccines should be handled, for instance, and that states may be
left to create their own separate plans for warehousing and
distributing doses.
ECONOMY & TRADE
A decoupling from China trade is coming from a surprising
direction. Germany's exporters aren't getting much of a lift from
demand in China, the WSJ's Tom Fairless reports, highlighting
significant and potentially long-lasting changes in trade patterns
since the pandemic began. Germany's exporters are benefiting from a
recovery in international trade, but the country's outbound flows
to China remain far below year-ago levels. That suggests a possible
a tipping point in Germany's relationship with China, its largest
trading partner and a big buyer of German industrial robots,
factory equipment and vehicles. The trade flows were so strong that
German companies took double-digit sales growth to China for
granted. Beijing is now encouraging manufacturers to produce more
sophisticated machinery that can rival high-end German capital
goods. German exporters now are looking at the loss of a lucrative
sales channel along with more competition in other markets.
MANUFACTURING
Ford Motor Co. is giving U.S. automotive supply chains a badly
needed boost. The car marker is expanding its largest and oldest
factory to make electric pickup trucks, the WSJ's Mike Colias
reports, a high-profile manufacturing investment that will ramp up
assembly lines at a plant a few miles from the company's Dearborn,
Mich., headquarters. Ford's top executives underscored the
company's commitment to American manufacturing in announcing the
$700 million investment, which will also take the company deeper
into the electric-vehicle market. Ford plans to make
battery-powered versions of its flagship F-150 pickup at the plant
starting in 2022. Overall automobile sales have been off sharply
during the pandemic and companies have been paring production,
keeping inventories low and helping prop up pricing. Automotive
shipments on U.S. railroads are down nearly 27% this year,
according to the Association of American Railroads, but were nearly
flat in August.
QUOTABLE
IN OTHER NEWS
United Parcel Service Inc. plans to offer buyouts to some
management employees in a move to cut payroll costs. (WSJ)
The number of Americans filing new unemployment claims has
remained largely steady since early August. (WSJ)
A House panel's investigation into Boeing's 737 MAX provides
support for far-reaching changes to air-safety laws. (WSJ)
Top executives at major airlines pleaded at the White House for
more job-saving government aid. (WSJ)
Latam Airlines Group Inc. is bringing in hedge fund Knighthead
Capital Management to supply loans in a $2.45 billion bankruptcy
financing package. (WSJ)
Southwest Airlines Inc. temporarily grounded 115 planes over
discrepancies in weight data. (WSJ)
Auto-parts supplier Garrett Motion Inc. is preparing for a
possible bankruptcy filing amid slowing sales and rising tensions
over asbestos injury payments. (WSJ)
A U.S. judge blocked controversial U.S. Postal Service changes
that have slowed mail nationwide, calling them "politically
motivated." (Associated Press)
A.P. Moller-Maersk A/S will cut jobs in a major shakeup that
could affect up to a third of the shipping giant's staff.
(Reuters)
Amazon.com Inc. plans to open 1,000 small delivery hubs in
cities and suburbs around the U.S. (Bloomberg)
Fast-fashion rivals Zara and Hennes & Mauritz are taking
different approaches toward inventory management during the
pandemic. (Sourcing Journal)
Online pet-products retailer Chewy Inc. added a fulfillment
center with only high-demand products to cope with potential
inventory shortages. (Supply Chain Dive)
Global exports of refined oil products reached multiyear lows in
July. (Lloyd's List)
Job actions by Australian dock workers are causing cargo backups
at Sydney's Port Botany. (The Loadstar)
Container terminal operator Hutchison Ports named former U.K.
transport minister Chris Grayling as an advisor. (BBC)
Temperature-controlled logistics specialist Lineage Logistics
LLC raised $1.6 billion in an equity offering aimed at backing
expansion plans. (Crain's Detroit Business)
FreightCar America Inc. is closing a rail equipment factory in
northwest Alabama. (WHNT)
Delta Air Lines Inc. removed seats from a 777 passenger jet in
the first move by a U.S. carrier to undertake the temporary
freighter modification. (Air Cargo World)
Expedited trucker Forward Air acquired the assets of
Tennessee-based last-mile company CLW Delivery. (Logistics
Management)
French freight forwarder Geodis named Mike Honious chief
executive for the Americas, replacing Randy Tucker. (Air Cargo
News)
ABOUT US
Paul Page is editor of WSJ Logistics Report. Follow the WSJ
Logistics Report team: @PaulPage , @jensmithWSJ and @CostasParis.
Follow the WSJ Logistics Report on Twitter at @WSJLogistics.
Write to Paul Page at paul.page@wsj.com
(END) Dow Jones Newswires
September 18, 2020 09:56 ET (13:56 GMT)
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