Logistics Daily Report

Amazon Battles Seller Scams

Amazon.com Inc. is fighting a barrage of seller scams that may have been aided by its own employees. The company has fired several workers suspected of helping supply independent merchants with inside information, the WSJ’s Jon Emont, Robert McMillan and Laura Stevens report, while it cleans up its marketplace and seeks to block tactics that some sellers use to beat Amazon’s system. The crackdown is the result of a constant battle underway deep within the inner workings of Amazon’s website, with merchants sabotaging rivals and using data along with various techniques aimed at promoting their products over those of their competitors.  There’s even a black market for Amazon wholesaler accounts, which sellers use to gain access to volumes of product listings. The behind the scenes battle is a sign of Amazon’s weight in online sales, and the critical role the listings have in the survival of many merchants.

Supply Chain Strategies

The holidays are turning into an inventory management contest between toy sellers and consumers. Toy sales in the first two weeks of November were down by mid-teen percentages at brick-and-mortar stores, the WSJ’s Elizabeth Winkler reports, and a UBS report says they declined from the previous year during the week including the Thanksgiving weekend. The early results suggest storefronts may not get the boost they were expecting from the demise of Toys “R” Us. The iconic chain’s liquidation has pushed merchants like Walmart Inc. and Target Corp. to ramp up toy stocks. But mass-market retailers are loath to build up inventories too much and face cut-rate sales to start the New Year. UBS says those merchants are playing it safe with sparse inventory in the final week before Christmas, which will likely send more customers online and have parents more anxious to get last-minute orders delivered on time.

Apple Inc.’s dispute with a key supplier is making its business in China more complicated. A Chinese court ordered the electronics giant to stop selling older iPhone models in the country, the WSJ’s Tripp Mickle reports, after finding Apple infringed on two patents held by semiconductor maker Qualcomm Inc. The decision comes in a high-stakes dispute between two pillars of global supply chains, and casts new uncertainty over Apple’s business in a critical period. The dispute began when Apple sued Qualcomm nearly two years ago over its practice of collecting royalties on the entire sales price of an iPhone up to $400. Qualcomm says it charges a percentage of an entire device because its patents relate to cellular devices as a whole, not just its chips. The new ruling won’t end their dispute: Qualcomm has brought more than a dozen cases against Apple over patent infringement in China. In Other News A large majority of manufacturing executives say in a survey they are evaluating new supply sources and other changes because of tariffs. (WSJ) The number of available jobs in the U.S. inched higher in October. (WSJ) The U.S. and China started a new round of trade talks with a phone call involving top leaders. (WSJ) Chinese auto sales declined for the fifth month in a row in November. (WSJ) Greenbriar Equity Group will acquire Philadelphia-based freight forwarder BDP International and keep its management in place. (WSJ) German chemical producer BASF SE says transport problems from low Rhine River water levels cut fourth-quarter earnings by about $227.5 million. (WSJ) Bunge Ltd.’s chief executive will step down as the agricultural giant seeks to placate investors. (WSJ) Cosco Shipping Holdings is considering raising funds on the London Stock Exchange under a cross-listing with Shanghai’s bourse. (Reuters)  Utah’s coal exporters may ship through a Mexican port because of environmental resistance at U.S. terminals. (Lloyd’s List) Business sentiment in Japan moved into positive territory in November for the first time in 11 months. (Nikkei Asian Review) Walmart Inc. opened an e-commerce store in Japan in partnership with retail giant Rakuten. (TechCrunch) Macy’s Inc. will stop selling in China on the Alibaba Group Holding Ltd. Tmall site. (Digiday) McKinsey & Co. forecasts Indonesia’s e-commerce sales will reach $65 billion by 2022, from $8 billion in 2017. (Jakarta Post) Moody’s downgraded its rating for A.P. Moeller-Maersk A/S, citing “less robust" economic growth and trade uncertainty. (MarineLink) Liquefied natural gas bunkering services and infrastructure are taking shapeahead of tougher rules on maritime sulfur emissions. (Seatrade Maritime) Cosco Shipping Ports will develop and operate a planned container terminal at Abu Dhabi under a 35-year concession agreement. (Port Technology) Loaded container imports into Georgia’s Port of Savannah soared 17.3% in November. (Atlanta Business Chronicle) German ocean cargo carrier Hansa Heavy Lift entered insolvency. (Shipping Watch) Los Angeles-based MNX Global Logistics acquired the time-critical express division of Network Global Logistics. (The Loadstar) Europe’s P3 Logistics Parks is developing an 811,000-square-foot distribution site outside Bucharest. (Logistics Manager)