Today’s Top Supply Chain and Logistics News From WSJ

By Paul Page
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The Inc. supply chain is about to get much more complicated . The e-commerce giant’s decision to roll
out new lines of private-label brands in the coming weeks will include its first big push into perishable foods, the
WSJ’s Greg Bensinger reports. The first of the brands, which will include household items such as detergent and diapers,
may launch by the end of the month and add to store-brand market valued at $118.4 billion last year. With names like
Happy Belly and Mama Bear, the food items mark a big stretch for Amazon and may be partly behind the company’s rapid
expansion of its own logistics network, including control of a big aircraft fleet. Transporting food requires tight
quality controls and can demand special handling, and having a closed distribution network would allow Amazon to expand
in the perishables market as far it wants to — or as far as its customers will support.makeAd(‘4′,’300×250′,’mktsnews’,’article’,”,”);
The sugar trade map is changing. Changes to widespread trade barriers around sugar are sweeping across the world
and may shift distribution patterns for one of the world’s most protected commodities, the WSJ’s Ed Ballard reports. The
U.S. has no plans to change protections it first created in 1789, but gradual liberalization elsewhere has refiners and
exporters scrambling to assess changing markets and lower prices. Among the changes: the European Union starting next
year will remove production quotas and minimum payments for farmers, and the World Trade Organization is considering
whether Thailand’s production subsidies break trade rules. Europe’s actions could push another 3.5 million tons of new
sugar a year onto the global market, making the EU a net exporter. That could make producers in the Caribbean and Africa
casualties of sugar’s new reality.
Owning port cargo handling business has proved problematic for Terex Corp. as the equipment maker maps out its
future. Terex plans to sell part of its cranes business to Finland’s Konecranes Oyj for $1.28 billion in a deal that
Terex believes will free the company to sell the rest of its business to China’s Zoomlion Heavy Industry Science &
Technology Co., the WSJ’s Bob Tita reports. Deals involving U.S. port infrastructure have been politically sensitive
since DP World sought to buy several U.S. container terminals. Terex says unloading that business to Konecranes would
eliminate the risk of U.S. government regulators blocking that part of any Zoomlion deal on national security grounds. A
deal with Konecranes would give the Finnish company a bigger role at ports as many sites are rushing to improving
infrastructure and cargo handling. Terex’s material handling and port solutions unit had $1.44 billion in sales last
year, about a fifth of Terex’s total sales.
Oil prices rose to a 2016 high as Goldman Sachs Inc. boosted its forecast for the second half of the year to $50 a
barrel. (WSJ)
Starbucks Corp. will sell 10-year bonds to raise $500 million for sustainability projects. (WSJ)
A gauge of home-builder sentiment remained unchanged in positive territory in May, a sign of steady growth
expectations for the housing market. (WSJ)
The Southwest Airlines Co. pilots’ union sued the airline over plans to introduce a new aircraft type. (WSJ)
China’sICBC Standard Bank PLC will buy a London precious-metals vault from Barclays PLC, increasing its role in
the market’s infrastructure. (WSJ)
Scotch whisky exports fell last year, but at a slower pace than before as the industry shows signs of recovery.
Opposition among presidential contenders and in Congress gives the Trans-Pacific Partnership trade pact dim
prospects for approval. (Sacramento Bee)
A coalition of shippers, including General Mills Inc. and Patagonia Inc., urged regulators to impose tougher fuel
and emissions standards on big rigs. (DC Velocity)
Australian Container Freight Services wants to delay a sale of Asciano Ltd. until a dispute over a joint venture is
resolved. (Sydney Morning Herald)
Moody’s cut its outlook for North American freight rail carriers to negative. (Financial Post)
The freight rail downturn has cut deeply into business for rail equipment and maintenance providers. (Pittsburgh
APM Terminals will overhaul its Port of Los Angeles equipment to handle the new generation of ultra-larger
container ships. (Port Technology)
Korean Air fell to a first-quarter loss because of the declining value of its Hanjin Shipping stake and a 19.9%
slide in cargo yield. (Korea Herald)
Some cargo thieves are using 3D printing to create fake seals that disguise tampering with freight containers.
(Securing Industry)
South Korea’s Daewoo Shipbuilding & Marine Engineering signed an agreement to run a state-owned shipyard in Iran.
(Splash 24/7)
French truck drivers and other transport workers are planning cargo disruptions this week. (Lloyd’s Loading List)
Maine has developed a large and growing export business shipping lobsters to China. (The Washington Post)
Paul 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.
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