Today’s Logistics Report: Scrubbing Ship Emissions: Oversupplied With Scrap; Manufacturing Customers

Today’s Top Supply Chain & Logistics News from WSJ

A container ship at Port Everglades at Fort Lauderdale, Fla., in November. Photo: Joe Raedle/Getty Images

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The maritime industry’s impending new anti-pollution rule will echo across shipping competition over the next few years. The requirement to slash sulfur emissions will open a steep divide in operating costs for ship operators, the WSJ Logistics Report’s Costas Paris writes, with companies that have chosen “scrubber” exhaust systems likely to face far lower fuel costs. That’s because analysts estimate the new low-sulfur fuel aimed at meeting the environmental mandate will cost around 30% more than conventional fuel. Vessels that are outfitted with scrubbers can continue using that heavy bunker fuel, potentially changing financial calculations for shipping customers in some markets. The gap is part of the broader economic impact operators across transportation networks are wrestling with as regulators address heavy pollution in freight operations. The maritime world’s scrubber option is a rare instance where costs may be sharply different across the competitive field.

ECONOMY & TRADE

The global trash export trade is crashing and the results are piling up around the world. China’s decision to heavily restrict scrap imports has prompted countries including India, Vietnam and Indonesia to erect their own barriers, the WSJ’s Saabira Chaudhuri reports, triggering a seismic shift in how the world deals with its waste. The recycling industry is in tatters amid crumbling scrap prices, and local governments that manage the flow into recycling’s reverse supply chain haven’t caught up. The heaps of trash are growing: U.S. scrap exports of plastic to China are down 89% from 2017 levels, while mixed paper exports are off 96%. U.S. plastic scrap exports to all countries are down 64%. It has become an international issue. Japan has stockpiled 500,000 tons of plastic waste while waiting for a new market to develop, while European countries are burning as much waste as they recycle.

SUPPLY CHAIN STRATEGIES

Pittsburgh International Airport is getting more closely involved in manufacturing after struggling to build up its shipping volumes. The airport is developing a manufacturing hub near its passenger terminal, the WSJ’s Keiko Morris reports, part of a $1.1 billion modernization plan that officials hope can boost a facility that’s been shunted to the side of the country’s transportation and distribution maps. In the first phase, airport officials are planning a campus for manufacturers that use 3-D printing. The airport is offering resources including shared storage facilities and proximity to air shipping, which could cut shipping costs. The airport has been looking for tenants since US Airways scaled back its Pittsburgh hub before the airline was merged into Inc.香蕉视频苹果下载 Pittsburgh has fallen short in luring new air operators since then, but bringing in manufacturers that use air services could make the site more attractive.

QUOTABLE

“Those who put money into them made a big bet and now it’s payback time.”

—George Lazaridis of Allied Shipbroking, on shipping’s scrubber exhaust systems.

Number of the Day

33%

香蕉视频苹果下载Increase from the week of Oct. 10 to the week ending Dec. 19 in average container freight rates on selected major world-wide routes, according to Drewry Shipping Consultants Ltd.

IN OTHER NEWS

The U.S. House passed a new version of a trade agreement to link the U.S., Mexico and Canada. (WSJ)

Sales of previously owned U.S. homes declined a more-than-expected 1.7% in November. (WSJ)

Corp. plans to idle most of a mill near Detroit as losses mount in a weak domestic steel market. (WSJ)

Food conglomerate Inc. ’s quarterly sales expanded on growing business for healthier, upgraded products. (WSJ)

Inc. ’s quarterly sales jumped 10%, even after the sportswear company decided to stop selling through Inc. (WSJ)

High Ridge Brands Co. filed for bankruptcy protection香蕉视频苹果下载 and will put its family of personal-care products up for auction. (WSJ)

Federal regulators are challenging a Inc. ’s planned acquisition of the private-label cereal business of Inc.香蕉视频苹果下载 (WSJ)

香蕉视频苹果下载Japan’s government and several companies will launch a in the Russian Far East with Russian and U.S. partners. (Nikkei Asian Review)

Amazon expects to deliver through its own logistics network this year, about half of all of its orders. (Vox)

香蕉视频苹果下载A report says machinery and robotics will of China’s workforce by 2025. (South China Morning Post)

Inc. plans to begin shipping a new version of its from a Vietnamese factory this month. (Sourcing Journal)

香蕉视频苹果下载U.S. regional grocery chain Giant Eagle will phase out by 2025. (Supermarket News)

Furnishings retailer IKEA believes biofuels are a long-term solution to in shipping. (Shipping Watch)

The U.S. renewed a sanctions waiver for companies to with Cosco Shipping Tanker (Dalian). (Lloyd’s List)

The Philippines Chinese-made trains. (Xinhua)

Virginia will take over track and right of way owned by Corp. under a $1.7 billion deal to expand rail passenger rail service. (Richmond Times-Dispatch)

香蕉视频苹果下载A FedEx Corp. driver who had shot him in a robbery attempt. (WTAE)

Rapper Kanye West is advancing plans to turn a former Cody, Wyo., factory for Yeezy brand products. (Cody Enterprise)

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