Tag Archives: Shipping

Amazon CEO Andy Jassy on making AI chips, Prime Video spend, speeding up shipping – GeekWire

  1. Amazon CEO Andy Jassy on making AI chips, Prime Video spend, speeding up shipping GeekWire
  2. Amazon CEO should spin off 10% of AWS, says Needham’s Laura Martin CNBC Television
  3. Andy Jassy dismisses Microsoft and Google A.I. ‘hype cycle’ and says Amazon is starting a ‘substance cycle’ Yahoo Finance
  4. How Amazon’s CEO Plans To Dominate The AI Race Against Microsoft And Google? – Microsoft (NASDAQ:MSFT), A Benzinga
  5. Does Amazon CEO Andy Jassy plan to hop in on the CEO cage fight action? #Shorts CNBC Television
  6. View Full Coverage on Google News

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NVIDIA is now shipping GeForce RTX 4080 with AD103-301 GPU

NVIDIA AD103-301 GPU confirmed by Gainward

NVIDIA to introduce new variants of Ada GPUs.

Gainward has become the first company to confirm a new variant of AD103 GPU. An updated silicon labeled as AD103-301 brings minor changes to end users, but will help board partners in lowering the cost.

The first rumors about XX0/XX1 GPU variants emerged last week with the updated RTX 4070 non-Ti specs. NVIDIA had informed board partners that two GPU variants will be available for this SKU. This was later corroborated by HKEPC who provided further information on said AD104-25X GPU variants for this upcoming GeForce model:

We can now confirm that board partners have indeed been informed about two GPU specs for the RTX 4070. The ‘251’ GPU will enter mass production a few weeks after ‘250’, and it will require ‘a few less components’, claims our source. In the end this should lower the cost of the GPU, but not significantly.

This change has already been implemented for the RTX 4080 model which is shipping with either AD103-300 or AD103-301 GPUs, both said to offer the same performance and capabilities, but they are a new design that requires changes to the PCB.

Gainward RTX 4080 specs, Source: Gainward

Gainward confirms that both variants feature the same clocks, TDP and GPU configuration. Furthermore, the company did not release a new revision of existing cards (such as we had with LHR models), meaning that the AD103-300 and 301 are essentially the same GPUs.

RUMORED NVIDIA GeForce RTX 40 Series Specs
VideoCardz.com RTX 4090 RTX 4080 RTX 4070 Ti RTX 4070 RTX 4060 Ti
Picture
Board-SKU PG136-SKU330 PG136-SKU360 PG141-SKU331 PG141-SKU336/337 PG190
Architecture Ada (TSMC 4N) Ada (TSMC 4N) Ada (TSMC 4N) Ada (TSMC 4N) Ada (TSMC 4N)
GPU AD102-300 AD103-300/301 AD104-400 AD104-250/251 AD106-350
CUDA Cores
Boost Clock TBC TBC
Memory
Memory Bus
Default TGP
Release Date October 12th, 2022 November 16h, 2022 January 5th, 2023 March (?) 2023 TBC





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Arizona to remove shipping container wall from Mexico border

PHOENIX (AP) — Arizona will take down a makeshift wall made of shipping containers at the Mexico border, settling a lawsuit and political tussle with the U.S. government over trespassing on federal lands.

The Biden administration and the Republican governor entered into an agreement that Arizona will cease installing the containers in the Coronado National Forest — the only national forest along the border — according to court documents filed Wednesday in U.S. District Court in Phoenix.

The agreement also calls for Arizona to remove the containers that were already installed in the remote San Rafael Valley, in southeastern Cochise County, and in the Yuma area where the U.S. Bureau of Reclamation has an easement on the Cocopah Indian Tribe’s reservation. All this must be done by Jan. 4 without damaging any natural resources. State agencies will have to consult with U.S. Forest Service representatives.

Gov. Doug Ducey has long maintained that the shipping containers were a temporary fixture. Even before the lawsuit, he wanted the federal government to say when it would fill any remaining gaps in the permanent border wall, as it announced it would a year ago.

“For more than a year, the federal government has been touting their effort to resume construction of a permanent border barrier. Finally, after the situation on our border has turned into a full blown crisis, they’ve decided to act,” said C.J. Karamargin, Ducey’s spokesperson. “Better late than never.”

“Final details are still being worked out on how much it will cost and when it will start,” he told The Associated Press.

Representatives for U.S. Customs and Border Protection did not immediately return messages seeking comment Thursday.

The resolution comes two weeks before Democrat Katie Hobbs, who opposes the construction, takes over as governor.

The federal government filed a lawsuit last week against Ducey’s administration on behalf of the Bureau of Reclamation, the Department of Agriculture and the Forest Service.

The federal government “owes it to Arizonans and all Americans to release a timeline,” Ducey wrote last week, responding to news of the pending federal lawsuit.

The work placing up to 3,000 containers at a cost of $95 million was about a third complete, but protesters concerned about its impact on the environment held up work in recent days.

Meanwhile, limits on asylum seekers hoping to enter the U.S. had been set to expire Wednesday before conservative-leaning states sought the U.S. Supreme Court’s help to keep them in place. The Biden administration has asked the court to lift the Trump-era restrictions, but not before Christmas. It’s not clear when the court might rule on the matter.

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Arizona sheriff calls on Gov. Ducey to stop sending shipping containers to border for makeshift wall

An Arizona county sheriff said Saturday that he’s frustrated with Gov. Doug Ducey sending large shipping containers to the border in an effort to construct a makeshift border wall. 

With the containers reaching within 6 miles of Santa Cruz County, Sheriff David Hathaway told FOX 10 Phoenix he’ll arrest anyone who tries to place them in the county, which he referred to as “illegal dumping.” 

“The area where they’re placing the containers is entirely on federal land, on national forest land,” the sheriff told the station. “It’s not state land, it’s not private land, and the federal government has said this [is] illegal activity. So just the way if I saw somebody doing an assault or a homicide or a vehicle theft on public land within my county, I would charge that person with a crime.”

ARIZONA GOV. DOU DUCEY SUING BIDEN ADMIN OVER DEMAND TO REMOVE SHIPPING CONTAINERS FILLING GAPS AT BORDER 

Arizona Gov. Doug Ducey has been ordering shipping containers to the border since last summer. 
(Photo by Qian Weizhong/VCG via Getty Images)

ARIZONA GOV. BEGINS SEALING GAPS IN BORDER WALL WITH SHIPPING CONTAINERS TOPPED WITH RAZOR WIRE

Ducey filed a lawsuit against the federal government in October when he was told to stop double stacking the more than 100 containers in the border wall gaps on federal and tribal lands near Yuma. 

Santa Cruz County Sheriff David Hathaway said he’ll start making arrests if the shipping containers enter the county. 
(Sheriff David Hathaway/Twitter)

He has been ordering containers to the border since last summer. 

Construction to place these shipping containers in gaps in the border wall began in Yuma, Arizona. Republican Gov. Doug Ducey of Arizona is suing the federal government over an order to remove shipping containers used to fill gaps at the southern border.
(Ashley Soriano/Fox News)

“Our border communities are overwhelmed by illegal activity as a result of the Biden administration’s failure to secure the southern border,” Ducey said in a statement at the time. “Arizona is taking action to protest on behalf of our citizens. With this lawsuit, we’re pushing back against efforts by federal bureaucrats to reverse the progress we’ve made. The safety and security of Arizona and its citizens must not be ignored. Arizona is going to do the job that Joe Biden refuses to do — secure the border in any way we can. We’re not backing down.”

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The Santa Cruz County Sheriff’s Office and the governor’s office didn’t immediately return Fox News Digital’s request for comment. 

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Shipping firm Maersk, a barometer for trade, warns of ‘dark clouds on the horizon’

Maersk on Wednesday posted a record third-quarter profit but warned of ‘dark clouds on the horizon’ as shipping container demand weakens.

Andrew Matthews | PA Images | Getty Images

Maersk, the world’s largest container shipping firm, on Wednesday posted record profits for the third quarter on the back of high ocean freight rates, but noted a slowdown in demand.

The Danish giant, widely seen as a barometer for global trade, reported earnings before interest, tax, depreciation and amortization (EBITDA) of $10.9 billion for the quarter, above consensus analyst projections of $9.8 billion and up around 60% from the same period a year ago.

The company confirmed its full-year guidance for underlying EBITDA of $37 billion and a free cash flow above $24 billion.

CEO Søren Skou said the “exceptional results” this year were driven by a continued rise in ocean freight rates, but said it was clear that these have peaked and will begin to normalize in the fourth quarter amid falling demand and an easing of supply chain congestion. Skou flagged that earnings in the firm’s ocean operations will come down in the coming months.

“With the war in Ukraine, an energy crisis in Europe, high inflation, and a looming global recession there are plenty of dark clouds on the horizon,” Skou said in a statement Wednesday.

“This weighs on consumer purchasing power which in turn impacts global transportation and logistics demand. While we expect a slow-down of the global economy to lead to a softer market in Ocean, we will continue to pursue the growth opportunities within our Logistics business.”

In its second-quarter report, Maersk flagged an impending slowdown in global shipping container demand amid weakening consumer confidence and supply chain congestion.

The company said Wednesday that global container demand is expected to contract between 2% and 4% in 2022, down from a previous projection of +1% to -1%, noting that freight and charter rates declined in the third quarter as demand moderated and Chinese Covid-19 restrictions diminished.

Maersk shares were down 4.4% during early trade in Europe.

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Russia Moves to Pull Out of Ukraine Grain Deal After Blasts Hit Crimean Port

Russia said Saturday that it would suspend participation in the export of agricultural products from Ukrainian ports, in response to an attack on the occupied Black Sea port of Sevastopol that it blamed on the government of Ukraine.

The Defense Ministry said in a statement published on Telegram that ships of the Black Sea Fleet and civilian ships involved in ensuring the security of the so-called grain corridor had come under attack. As a result, “the Russian side suspends participation in the implementation of agreements on the export of agricultural products from Ukrainian ports,” the statement said.

The move threatens to derail the United Nations brokered deal that unblocks Ukraine’s vital grain exports through the Black Sea, which is critical to addressing a global hunger crisis and comes a day after U.N. chief

António Guterres

urged Russia and Ukraine to renew the agreement, which is officially set to expire on Nov. 19.

Officials from Russia, Turkey, Ukraine and the U.N. signed the grain agreement in July, freeing millions of tons of food products that had been bottled up in the country since the Russian invasion began in February.

The agreement is one of the few diplomatic breakthroughs of the war and helped to bring the global price of wheat down to prewar levels, helping to ease a global hunger crisis that resulted in part from the conflict. Ukraine provided about 10% of the world’s wheat before Russia invaded.

If shipments of Ukrainian grain are halted, the suspension will likely drive up the global price of wheat, corn and other vital food products.

But Russia’s Foreign Ministry said that Ukraine’s armed forces used “the cover of a humanitarian corridor” to launch massive air and sea strikes and as a result Moscow “cannot guarantee the safety of civilian dry cargo ships participating in the Black Sea Initiative and suspends its implementation from today for an indefinite period.” It said appropriate instructions have been given to Russian representatives at the Joint Coordination Center in Istanbul, which controls the transportation of Ukrainian food.

A Turkish official said Turkey hasn’t been officially notified of Russia’s decision to suspend its participation in the deal. Turkish President Recep

Tayyip Erdogan

helped broker the deal.

Oleksandr Kubrakov,

Ukraine’s minister of infrastructure, said his country will continue supplying grains around the world. “The world should not be held hostage to Russia’s whims, hunger cannot be a weapon,” he said in a Tweet.

Russia’s decision to suspend it is also a major blow to Ukraine’s globally important agriculture industry, which returned to a nearly prewar level of grain exports earlier this month, largely due to the deal. Since the agreement was signed, Ukraine exported 9.2 million tons of food products through a safe corridor in the Black Sea, according to the United Nations.

Russian President

Vladimir Putin

has threatened to abandon the deal in recent months, arguing that not enough of Ukraine’s wheat was going to poorer nations and that not enough Russian food and fertilizers were being exported due to sanctions. Around one-quarter of the food shipped through the deal went to low-income countries, according to the U.N. Ukraine also has shipped wheat to crisis-stricken nations including Somalia, Afghanistan and Yemen under the agreement.

Stéphane Dujarric,

a spokesman for the U.N. secretary-general, on Saturday said, “We’ve seen the reports from the Russian Federation regarding the suspension of their participation in the Black Sea Grain Initiative following an attack on the Russian Black Sea Fleet. We are in touch with the Russian authorities on this matter.”

“It is vital that all parties refrain from any action that would imperil the Black Sea Grain Initiative which is a critical humanitarian effort that is clearly having a positive impact on access to food for millions of people around the world,” said Mr. Dujarric.

In Luch, a village near the Kherson front line, a resident plays with her dog in the basement where she has been living during the war.



Photo:

Virginie NGUYEN HOANG for the Wa

Volunteers distribute humanitarian aid in the village.



Photo:

Virginie NGUYEN HOANG for the Wa

When asked about how Russia’s decision would affect the operation of the grain corridor, a representative of the Joint Coordination Center referred to Mr. Dujarric’s statement.

Ukraine’s foreign minister said in a tweet, “We have warned of Russia’s plans to ruin the Black Sea Grain Initiative. Now Moscow uses a false pretext to block the grain corridor which ensures food security for millions of people. I call on all states to demand Russia to stop its hunger games and recommit to its obligations.”

A worker at a Ukrainian power plant repairs equipment damaged in a missile strike.



Photo:

sergei supinsky/Agence France-Presse/Getty Images

The remains of a house in the southern village of Luch, which has suffered frequent shelling.



Photo:

Virginie NGUYEN HOANG for the Wa

Ukraine President

Volodymyr Zelensky

accused Russia earlier this month of deliberately slowing the passage of vessels through the corridor, creating a backlog of more than 170 vessels waiting to transit. The corridor’s capacity is limited by the number of inspectors from Russia, Turkey, Ukraine and the U.N. who must check each ship as it enters and exits the Black Sea.

Russian Defense Ministry spokesman Lt. Gen. Igor Konashenkov said nine aerial drones and seven maritime drones were involved in Saturday’s attack. He said the air attacks were repelled, but a sea minesweeper, the Ivan Golubets, sustained minor damage, as did some defensive infrastructure in Yuzhnaya Bay, one of the harbor bays in Sevastopol.

“You could hear explosions coming in from the sea,” said Yevgeni Babalin, a dockworker at the Port of Sevastopol. “There are fears that the Admiral Makarov was hit by an underwater drone.They shot at it from the ship and from a helicopter.”

The Admiral Makarov, a frigate, replaced the Moskva as the Black Sea Fleet’s flagship after the latter was attacked earlier this year.

A broker in Odessa who arranges cargoes from Sevastopol to the Middle East said the situation at the port was tense with residents asked to stay inside by Russian authorities.

Mikhail Razvozhayev, the Russian-installed governor of Sevastopol, wrote on his Telegram messaging channel that the attack had caused minimal damage to civilian infrastructure but city services were put on alert. He appealed to residents of the city not to publicize videos or information of the attack that could aid Ukrainian forces “to understand how the defense of our city is built.”

Ukrainian officials haven’t claimed responsibility for previous blasts in Crimea, including a drone strike on the headquarters of the Black Sea Fleet in August, but rejoiced and vowed to reclaim the peninsula annexed by Russia in 2014.

Crimea has served as a rear base for Moscow’s military occupation of a swath of territory in southern Ukraine, where Kyiv’s forces are now seeking to dislodge Russian forces from part of the Kherson region.

Gen. Sergei Surovikin, the recently appointed commander of Russian troops in Ukraine, has acknowledged that the position in Kherson is challenging and that “difficult decisions” might be called for, without elaborating.

Russian-installed officials in Kherson began telling residents to leave the city earlier this month in what they said was preparation for a Ukrainian assault.

Kirill Stremousov,

deputy head of the Kherson region’s Russian-installed administration on Friday said the evacuation of civilians was complete.

Meanwhile, the Russian Defense Ministry spokesman accused the British Navy on Saturday of being responsible for sabotaging Nord Stream pipelines in late September. Western governments have found that explosions rocked Nord Stream and a parallel pair of pipelines, Nord Stream 2. Investigations are continuing. Some German officials have said they are working under the assumption that Russia was behind the blasts.

The U.K. Defense Ministry said in a tweet on Saturday: “To detract from their disastrous handling of the illegal invasion of Ukraine, the Russian Ministry of Defence is resorting to peddling false claims of an epic scale. This invented story, says more about arguments going on inside the Russian Government than it does about the west.”

Write to Ann M. Simmons at ann.simmons@wsj.com, Jared Malsin at jared.malsin@wsj.com and Isabel Coles at isabel.coles@wsj.com

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EU Likely to Approve G-7 Cap on Russian Oil Price in Two Steps

BERLIN—The European Union has advanced work on a price cap for Russian oil under an approach that keeps the U.S.-led effort on track but holds off on final approval.

EU member states have agreed on a two-stage approach to the international price cap on Russian oil, which is being developed within the Group of Seven industrial economies. Member states signed off on the legislation needed to implement the measures on Wednesday morning but will hold off approving it until the rest of the G-7 is ready, diplomats and officials said.

The price-cap decision is part of an eighth package of sanctions against Russia over the invasion of Ukraine. The measures will come into effect Thursday morning.

The EU approach reflects concern among some member states about the proposal, which would place a maximum price on what can be paid for Russian seaborne oil. Hesitation is greatest in EU members with large shipping sectors, including Greece, Cyprus and Malta.

The emerging EU approach means the price-cap proposal remains on track to enter into force, but raises fresh questions about how quickly it can be implemented.

Washington has pushed the international oil-price cap as a way of minimizing the Kremlin’s revenue from foreign oil sales without inflating oil prices by preventing oil sales to Asia and Africa. The idea is to set a maximum price at which shippers from G-7 countries may legally transport Russian oil to countries in Asia and Africa. The plan would also permit those companies to buy insurance for Russian oil cargoes, a critical aspect of the shipping industry. The G-7 hopes other countries will join the system.

The G-7 still must agree on the details of the price cap, including the price at which to set the cap, its precise implementation methods and how many other countries they need to join the G-7 in launching the cap. U.S. lawmakers are advocating increasing penalties for foreign buyers who don’t abide by the price cap.

U.S. officials have been flexible about how the other G-7 countries decide to implement the cap.

The EU formally backed the measure at the G-7, but European officials have repeatedly raised concerns about how the mechanism would function and its effectiveness in crimping Russia’s oil revenues.

Greece, Malta and Cyprus have raised concerns that banning EU companies from carrying Russian oil that is sold at rates above the price cap could hurt their economies. They fear losing business to countries that stay outside the mechanism, and they have also raised concerns that some G-7 countries may not enforce the price cap as rigorously as the EU, diplomats said.

At a meeting Tuesday evening, EU ambassadors agreed on a proposal under which they could agree on the legislation, but only formally approve the mechanism at a later date if the other G-7 countries have cleared the way to implement the cap system.

That means the 27 EU member states will need to revisit the three central elements of the price cap proposal. First they would need to sign off an exemption into the June sanctions package that banned EU companies from providing insurance on Russian oil transport after Dec. 5. They would also need to implement a ban on EU shippers transporting Russian oil priced above the cap, and then they would need to sign off on the G-7’s price cap.

The European Union proposed a ban on Russian crude within six months; Moscow and Kyiv accused each other of breaking a cease-fire in Mariupol. Photo: Julien Warnand/Shutterstock

To assuage the concerns of Malta, the ambassadors agreed Tuesday to carry out an impact assessment of the oil price cap mechanism when it enters into force. That will take into account the price cap’s “expected results, international adherence to and informal alignment with the price cap scheme” of non-G-7 countries, according to diplomats. It would also assess its potential impact on the EU.

The European Commission, the EU’s executive body, last week proposed to lay the legal basis for the price cap mechanism as part of a new package of sanctions it was placing on Russia in response to the Kremlin’s claim that it was annexing four regions of Ukraine.

Those sanctions would place an import ban on €7 billion, equivalent to about $7 billion, of Russian sales to the EU and would ban the export to Russia of a number of goods that can be used by its military in the war in Ukraine.

It will also target around three dozen people and companies involved in the latest annexations by Russia of Ukrainian regions.

The EU’s backing for the price cap is critical because the bloc plays a critical role in both the shipping industry and in shipping insurance sector. Sanctions must be approved by all 27 member states.

Under a sanctions package passed in June, the EU agreed to place an oil embargo on Russian seaborne oil by Dec. 5 and, on the same date, ban the provision of services, including shipping insurance, for Russian oil sold outside the bloc. The insurance measure could have choked off oil supplies to Asia and Africa, pushing oil prices higher.

EU diplomats have said that if the G-7 price cap is fully ready and detailed well in advance of Dec. 5, then they can come back and sign off the measures. If the G-7 mechanism is only finalized a few days before the December deadline—or isn’t in place until after it—some member states may demand a transition period to fully implement the measure.

Only Australia has pledged to join the G-7 system. European and U.S. officials say it is unlikely that India, China and some other top buyers of Russian oil will formally participate. Still, U.S. officials hope that by agreeing the price cap, they will at least drive down the price that other countries are willing to pay for Russian oil.

Write to Laurence Norman at laurence.norman@wsj.com

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FedEx to Raise Shipping Rates by 6.9% as It Combats Slowdown

FedEx Corp.

FDX 0.84%

said it plans to raise shipping rates by an average of 6.9% across most of its services starting in January as the delivery giant copes with a global slowdown in business. 

The rate increase is higher than previous years and comes days after the company slashed its profit and sales forecasts. FedEx and rival United Parcel Services Inc. raised shipping rates by an average of 5.9% for 2022—the first time in eight years that either had strayed above 4.9%. 

Inflation in the U.S. has been hovering near four-decade highs. Energy prices have declined in recent weeks, though they are still above year-ago levels. FedEx offsets some of those costs with fuel surcharges. 

The company is raising rates as it and other carriers are suddenly stuck with excess capacity. Ocean freight rates have plunged during what is typically the industry’s peak season after cargo owners shipped holiday goods early and inflation dented consumer demand.

The average number of packages FedEx handled daily in the quarter ended Aug. 31 fell 11% from the prior year. Increases in fees such as fuel surcharges helped boost FedEx’s revenue despite the decline in volumes. However, operating expenses weighed on the company’s profit margins.

FedEx’s rate move was announced Thursday as part of its first-quarter earnings report, which showed profit fell 20% from a year earlier and that it was planning additional cost cuts. The company said it expects to generate between $2.2 billion and $2.7 billion in savings this fiscal year from a plan announced last week to park aircraft, suspend Sunday deliveries and close some offices. It also plans to wring an additional $4 billion in annual costs from its operations over the next two years.

FedEx’s results were released before market close on Thursday, about 90 minutes ahead of schedule, which a company spokeswoman said was the result of a technical glitch. 

Shares in FedEx closed trading up less than 1%.  

FedEx Chief Executive

Raj Subramaniam,

who took over from founder

Fred Smith

on June 1, is likely to face questions from analysts about how early initiatives to make its delivery networks more efficient have fared. Activist investor D.E. Shaw Group has pushed FedEx to boost profits, and Mr. Subramaniam, who previously served as FedEx’s operations chief, has pledged to make the operating structure more efficient and increase profit margins.

FedEx said Thursday it expects to save this fiscal year between $1.5 billion and $1.7 billion in its Express business by reducing flight frequencies and parking aircraft. It expects to save up to $500 million in its Ground business from closing sorting operations and stopping some Sunday deliveries. It expects to cut up to $500 million from overhead, such as closing FedEx Office and corporate office locations.

FedEx customers and industry observers are looking for details about the company’s next cost-cutting moves and whether they will affect shipping prices and services ahead of its peak delivery season, a period that starts around Thanksgiving and ends in mid-January. The company has roughly 547,000 full- and part-time employees and about 6,000 contractors with its FedEx Ground delivery business.

Delivery companies, including FedEx,

UPS,

the U.S. Postal Service and

Amazon.com Inc.,

are slated to handle about 92 million parcels a day in the time frame that corresponds with the holiday-shopping season, but they have the capacity to handle about 110 million parcels, said

Satish Jindel,

president of research firm SJ Consulting Group. 

Carriers worked to increase package-handling capacity in earlier months of the pandemic as businesses dealt with a jump in online purchases. A pullback in online orders occurred faster than carriers and many retailers expected.

Walmart Inc.

and

Target Corp.

sounded alarms this spring that their stores and warehouses were holding too much inventory after they stepped up orders to avoid supply-chain delays at the same time that demand slowed rapidly. 

CEO Raj Subramaniam is contending with the challenge of boosting productivity while cutting costs at FedEx.



Photo:

PHOTO: Houston Cofield for The Wall Street Journal

FedEx Express, the company’s biggest unit by revenue, flies time-critical packages overnight for customers. The spending slowdown and order reductions meant customers didn’t need to pay as frequently for fast air-shipping. FedEx Express revenue in the August quarter was about $500 million lower than it planned, the company said.

“I think the problem is with the market, not FedEx, in that people had unreasonably high expectations at how sustainable and how sticky the pandemic gains were,” said

Ravi Shanker,

a transportation-industry analyst at Morgan Stanley. 

The prospects of package carriers having excess capacity could limit the pricing power that they wield and enable shippers to ask for lower rates. Jack King, a denim-apparel maker in Bristol, Tenn., said his firm, L.C. King Manufacturing, used to ship solely with FedEx Ground because the delivery giant helped his company diversify from being solely a wholesaler to becoming an e-commerce retailer too. “It brought us to the dance,” Mr. King said.

But the increases in fuel and peak delivery surcharges were too much for his daily operations of shipping more than 100 packages. Stamps.com, a partner of both USPS and UPS, helped his company save $4.50 per package, according to Mr. King. “We were stunned by how much cheaper it was,” he said. 

A FedEx spokeswoman declined to comment. 

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Can FedEx survive this economic slowdown? Join the conversation below.

FedEx’s plan to adjust to weaker levels of demand may mean lower levels of seasonal hiring. Ahead of the peak season, carriers typically hire thousands of people to handle higher parcel volumes, bringing on more drivers and extending hours in their sortation facilities. Last year, FedEx said it planned to add 90,000 seasonal workers.

The delivery giant may have limited flexibility in reducing its costs on drivers in the months ahead. FedEx Ground contractors have been asking for more compensation to help with higher fuel and wages since the start of this year. Ground contractors are typically small businesses that hire their own drivers and buy their own trucks to deliver packages on their allocated routes. Amazon earlier this month said it would raise pay and introduce some new benefits for its drivers.

Some investors have called for the company to consolidate its Ground and Express businesses into one unit, a move that Mr. Smith, who now serves as executive chairman, had long resisted. Each FedEx unit operates as an independent business with its own CEO.

Company executives have said they plan to integrate some operations between Express and Ground that provide overlapping service, but said that there are limitations. Certain Ground facilities, for instance, aren’t equipped to handle air cargo. Ground also relies on independent contractors, while Express owns the planes it uses and directly employs its staff. 

As inflation climbs in the U.S., rising food and energy costs have pushed the nation’s most popular price index to its highest level in four decades. WSJ’s Gwynn Guilford explains how the consumer-price index works and what it can tell you about inflation. Illustration: Jacob Reynolds

—Cara Lombardo contributed to this article.

Write to Esther Fung at esther.fung@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Ray Dalio says watch out for rates reaching this level, because Wall Street stocks will take a 20% hit

After that CPI shock earlier in the week, Wall Street is fielding a fresh batch of data on Thursday, with the headline retail sales number coming in stronger than expected. And a disastrous rail strike may be inverted.

But there’s no cheering up billionaire investor and hedge-fund manager Ray Dalio who in our call of the day asserts the Fed has no choice but to keep driving up interest rates, at a high price to stocks.

And he’s putting some fairly precise guesswork out there. “I estimate that a rise in rates from where they are to about 4.5% will produce about a 20% negative impact on equity prices,” Dalio said in a LinkedIn post dated Tuesday.

Some are forecasting the Fed could hike interest rates by 100 basis points next week, a move not seen since the likewise inflationary 80s. The central bank’s short-term rate hovers between 2.25% to 2.5%, but Nomura, for one, sees that rate headed to 4.75% by 2023.

But Dalio thinks interest rates could even reach the higher end of a 4.5%-to-6% range. “This will bring private sector credit growth down, which will bring private sector spending, and hence the economy down with it,” he says.

Behind this prediction is the Bridgewater Associates founder belief that the market is severely underestimating where inflation will end up — at 2.6% over the next 10 years versus what he sees as 4.5% to 5% in the medium term, barring shocks.

Read: Why a single U.S. inflation report roiled global financial markets — and what comes next

As for what happens when people start losing money in the markets — the so-called “wealth effect” — he expects less spending as they and their lenders grow more cautious.

“The upshot is that it looks likely to me that the inflation rate will stay significantly above what people and the Fed want it to be (while the year-over-year inflation rate will fall), that interest rates will go up, that other markets will go down, and that the economy will be weaker than expected, and that is without consideration given to the worsening trends in internal and external conflicts and their effects.”

The markets

Stock futures
ES00,
-0.25%

YM00,
+0.02%

NQ00,
-0.48%
are slightly lower post data, as Treasury yields
TMUBMUSD10Y,
3.437%

TMUBMUSD02Y,
3.852%
keep climbinging and the dollar
DXY,
-0.10%
firms up.

Oil prices
CL.1,
-1.63%
are lower, along with gold
GC00,
-0.83%.
China stocks
SHCOMP,
-1.16%

HSI,
+0.44%
slipped after the country’s central bank left rates unchanged. European natural-gas prices
GWM00,
+4.13%
are on the rise again. Bitcoin
BTCUSD,
+0.64%
is trading at just over $20,000.

The buzz

Shares of Union Pacific
UNP,
-3.69%,
Norfolk Southern 
NSC,
-2.16%
and CSX
CSX,
-1.05%
 are rallying in premarket after the White House said it has reached a tentative railway agreement with unions. No deal by Friday would mean strikes and havoc for supply chains, grain markets and even the coming holidays. Read more here.

August retail sales rose a stronger-than-expected 0.3% as Americans spent on new cars while weekly jobless claims came in lower for a fifth-straight week and import prices dropped 1%. Elsewhere, the Empire State manufacturing index perked up on the heels of a deep negative reading, but the Philly Fed factory index worsened. Industrial production and business inventories are still to come.

Adobe shares
ADBE,
+0.85%
are dropping after a report the software company is mulling a $20 billion deal to buy graphic design startup Figma .

Vitalik Buterin, one of the co-founders of Ethereum, says the so-called “merge” is done, meaning the birth of a more environmentally friendly crypto. Ethereum
ETHUSD,
-1.22%
is up just a little right now.

A new lawsuit claims Tesla
TSLA,
+3.59%
has made false promises over Autopilot and Full Self Driving features. And move over Tesla, Apple
AAPL,
+0.96%
is now Wall Street’s biggest short bet.

Ericsson
ERIC,
-3.32%

ERIC.A,
-1.78%

ERIC.B,
-3.34%
is dropping after a double downgrade at Credit Suisse, who cited inflationary headwinds. Analysts lifted Nokia
NOKIA,
-0.51%

NOK,
-0.40%
to outperform, though the stock is barely moving.

Cathie Wood’s Ark Investment Management went on a dip-buying spree after Tuesday’s market meltdown, scooping up chiefly Roku
ROKU,
+0.44%.

Opinion: Pinterest never considered itself a social network. Until now.

Patagonia billionaire Yvon Chouinard is donating his entire company — worth $3 billion — to the climate fight.

Best of the web

No U.S. shale rescue for Europe.

Turkey finds an extra $24.4 billion laying around.

Queue to pay respects to Queen is 2.6 miles long and counting.

The tickers

These were the top-searched tickers on MarketWatch as of 6 a.m. Eastern Time:

Ticker Security name
TSLA,
+3.59%
Tesla
GME,
+1.01%
GameStop
AMC,
+1.95%
AMC Entertainment
BBBY,
+4.66%
Bed Bath & Beyond
HKD,
+311.78%
AMTD Digital
NIO,
-0.14%
NIO
AAPL,
+0.96%
Apple
APE,
+0.94%
AMC Entertainment preferred shares
AMZN,
+1.36%
Amazon
NVDA,
-0.02%
Nvidia
Random reads

Scientists try to teach robots comedic timing

Sausage, mozzarella, batter. Meet South Korea’s hot dog.

Need to Know starts early and is updated until the opening bell, but sign up here to get it delivered once to your email box. The emailed version will be sent out at about 7:30 a.m. Eastern.

Read original article here

The Last of Us PS5’s Pricey Firefly Edition Shipping in Shocking Condition

Image: Porshapwr

Sony has committed a cardinal sin with its PlayStation Direct exclusive The Last of Us: Part I Firefly Edition – it’s not invested in good enough packaging. Anyone purchasing the $100 limited edition is doing so for collection purposes – some pre-orders were even being flogged for up to $450 on auction websites when the bundle sold out earlier in the year – so it stands to reason fans expect the condition to be pristine upon arrival.

Unfortunately, there are widespread examples of these items turning up in tatters. If it was just one, we’d put it down to bad luck, but there are dozens upon dozens of examples of damage on Twitter. In some instances, the paper-thin envelope has been torn open – in others, the glue sealing the wrapper has been stuck to the cardboard wraparound case, leaving a mess.

To add insult to injury, because this is a collector’s edition that’s sold out, Sony’s not offering replacements – just refunds. While it’s good (albeit expected) that consumers can still get their money back for a damaged product, those who purchased this version will have done so because they’re fans and genuinely wanted to add the Firefly Edition to their collection.

Did you order one of the collector’s editions? And what kind of condition did it arrive in? Let us know in the comments section below.



Read original article here