Supply Chains as Weapons of Power; U.S. Gas Stands to Gain in Crisis

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Supply Chains as Weapons of Power; U.S. Gas Stands to Gain in Crisis By Liz Young | WSJ Logistics Report

The new weapons of global power are hard, physical resources-from oil to rare-earth metals and industrial capacity.

The WSJ's Georgi Kantchev and Jon Emont report that Iran's move to choke off the Strait of Hormuz has turned crude oil into a weapon of war . It marks a new phase in the 21st-century competition for global power, one that will be defined by the control of critical raw materials and energy.

China last year used its control of roughly 90% of the world's supplies of rare-earth magnets to checkmate the U.S. in trade negotiations. By cutting off access to metals used in cars, weapons and electronics, Beijing forced U.S. factories to idle and Washington to soften its demands.

For decades, Western consensus held that the winners of the 21st century would be defined less by control of territory and raw materials than by command of capital, technology and global networks.

Yet the recent weaponization of supply chains has offered a stark reminder that rather than erasing physical geography, the era of hyperconnectivity has turned it into a possibly more potent weapon.

Iran said it would target critical infrastructure in the Middle East

if President Trump follows through on a threat to "obliterate"

Iranian power plants should Tehran fail to reopen the Strait of Hormuz. (WSJ) Governments around the world are pressuring consumers

to reduce energy use. (WSJ) Quotable CONTENT FROM: PENSKE LOGISTICS Gain the Big Picture. Gain Ground With Penske Logistics.

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Commodities

American gas exporters are poised to play a pivotal role in global flows of liquefied natural gas as Iran targets its neighbors' exports.

The WSJ's Benoît Morenne and Collin Eaton write that LNG facilities in Qatar, the second-biggest supplier of LNG globally, are expected to be offline for months and won't resume production at prewar levels.

A prolonged outage will have major ramifications for energy markets . The stoppage in Qatar means the world is losing the equivalent of about one-fifth of global LNG supplies per day.

The U.S. is set up to log big profits from being a reliable source at a time when global inventories are being depleted and buyers are looking down the barrel of a potential monthslong disruption.

Although it would take years to build new plants, some companies such as Venture Global have uncontracted volumes that will now fetch much higher prices on the spot market.

Number of the Day Supply Chain Strategies

Scientists and engineers at Kimberly-Clark were tasked with a sticky design challenge: Upgrade the company's most affordable line of diapers-without hitting the bottom line.

The revamped Huggies Snug & Dry debuted last February and has since helped Huggies sell more diapers, grow its market share and drive increased company profit last quarter.

The WSJ's Natasha Khan reports that the template of how the team made a softer, affordable diaper is ricocheting across the $33 billion company . Kimberly-Clark CEO Mike Hsu is focused on making brands like Huggies, Kleenex tissues and Scott paper towels the least-expensive items on the shelf, while advertising new features.

The company is investing $2 billion in U.S. manufacturing sites that will help it lower production costs by being more automated and cutting the miles its products need to travel. In the long run, Kimberly-Clark says the new diaper may end up being cheaper to make than older models.

In Other News

The U.S. economy is expected to slow

further amid continued headwinds. (WSJ)

Canada retail sales rose 1.1% in January . (WSJ)

Employees of a U.S. server maker helped smuggle machines

with high-end Nvidia chips to China, according to a U.S. indictment. (WSJ)

Tesla and SpaceX plan to build a massive new chip factory

in Texas. (WSJ)

Unilever is in talks to separate its food business

and combine it with spice maker McCormick. (WSJ)

New York City's LaGuardia Airport was closed Monday

after a passenger plane collided with an emergency vehicle on the runway, killing two pilots, authorities said. (WSJ)

Trade groups for U.S., Japanese and other global automakers are urging the Trump administration to maintain import restrictions

on China's auto industry. (Nikkei Asia)

Tanker sales have plummeted since the start

of the Middle East conflict. (Lloyd's List)

Diana Shipping plans to continue its battle

to dominate rival Genco Shipping & Trading's board after its latest takeover offer was knocked back. (TradeWinds)

APM Terminals took a 49% stake

in Hateco Haiphong International Container Terminal in Vietnam. (Journal of Commerce)

Companies leasing industrial real estate are moving away from coastal port markets

toward lower-cost inland logistics hubs. (DC Velocity)

New York State Police charged a truck driver hauling an excavator

for allegedly striking more than a dozen overpasses across central New York. (Syracuse Post-Standard)

About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at [mark.long@wsj.com].

Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long , Liz Young and Paul Berger .

This article is a text version of a Wall Street Journal newsletter published earlier today.

 

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March 23, 2026 07:02 ET (11:02 GMT)

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