The cost to ship goods across the Pacific is starting to sink, as a rally fueled by U.S. importers stocking up during the tariff truce loses steam.

The WSJ Logistics Report’s Paul Berger writes that the average spot rate to ship a 40-foot container from Asia to the U.S. West Coast slipped at the start of this week to $5,840, down from an average of about $6,000 the prior week, according to Freightos. The Shanghai Containerized Freight Index, a measure of global shipping rates, on Friday fell 6.8% from a week earlier, dragged down by an almost 27% decline in rates from Shanghai to the U.S. West Coast. The falling prices are a relief for retailers and manufacturers who watched China-West Coast rates more than double between mid-May and early June. 

• President Trump and Canadian Prime Minister Mark Carney agreed to complete a trade deal within 30 days, according to a report of the leaders' Group of Seven meeting. (WSJ)
• Canada is considering rules to compel the use of domestically produced steel and aluminum for government-funded infrastructure projects and defense-procurement deals. (WSJ)
• Commerce Department officials discussed broadening export controls on chip-making equipment going to China in the runup to recent trade talks in London. (WSJ)
• Walmart-owned Sam’s Club is evaluating products to raise prices on to offset higher costs from tariffs, with candidates ranging from small kitchen appliances to outdoor décor. (WSJ) 
• Two toy companies asked the U.S. Supreme Court to consider striking down many of Trump’s tariffs, requesting they hear the case without waiting for a federal appeals court ruling. (Bloomberg)

Note to Readers: The Logistics Report won't be published Thursday in observance of Juneteenth in the U.S. We will be back Friday.

Two oil tankers burned after colliding in the Gulf of Oman. The incident occurred approximately 17 miles off the coast of the United Arab Emirates port of Fujairah near the Strait of Hormuz early Tuesday, said a spokesman for Frontline, which owns one of the vessels. The Journal's Gareth Vipers and Costas Paris report that maritime officials warned that navigational systems are being jammed in the region as a result of the military operations by Iran and Israel. Norway-based Frontline said the collision was due to navigational issues and not as a direct result of airstrikes. The U.A.E. coast guard said it evacuated 24 people from the two ships, the Liberian-flagged Front Eagle and the Antigua and Barbuda-flagged Adalynn. Oil prices extended a rally sparked by Israel’s strikes on Iran, with benchmark U.S. futures rising over 4% on Tuesday. This remains more than 8% lower than a year ago, since, as yet, Israel hasn’t targeted oil-export hubs.

• Trump was considering options including a potential U.S. strike against Iran, though no decision had been made, after he earlier on social media called for Tehran’s unconditional surrender. (WSJ)
• Israel hasn’t attacked Iran’s energy-export hubs, but if it does, China–which receives more than 90% of Iran’s sanctioned crude exports–could find itself cut off from a flow of cheap oil. (WSJ)
• The European Union’s executive arm proposed a sweeping ban on imports of Russian oil and gas by the end of 2027. (WSJ)

Dozens of companies have pledged to build more factories in the U.S. since Trump took office. Generic drugmakers aren’t among them. The WSJ’s Jared S. Hopkins writes that they have no plans to change that anytime soon. Generics firms say further domestic investment is too risky in such a low-margin and unpredictable business, unless the government helps to steady the sector that provides 90% of Americans’ prescription medications. Brand-name drugmakers including Bristol Myers Squibb, Eli Lilly, Roche and others have promised to invest more than $250 billion in U.S. manufacturing. The stance from generics firms such as Sandoz, Teva Pharmaceutical Industries and others is strikingly different. Supply-chain experts say more U.S. investment by the brand-name companies won’t help curb shortages of drugs or supply essential medicines–largely generics made overseas. New tariffs could put generic makers, which compete largely on price and generate sales on volume, in an even more vulnerable position.

U.S. consumer spending dropped more than forecast, with retail sales falling 0.9% in May from a month earlier, a decline partly driven by lower levels of auto purchases. (WSJ)

Import prices into the U.S., which are taken at the point of departure and therefore exclude duties, were unchanged last month, Labor Department data showed. (WSJ)

The Bank of Japan left its policy settings unchanged amid continuing trade uncertainty and said it would slow the pace of its bond-buying tapering after April 2026. (WSJ)

German confidence in the economy jumped again this month, helped by improving consumer demand and an expected boost from the new government’s spending plans. (WSJ)

The European Union aims to ramp up defense capabilities by loosening its knot of regulations covering everything from sustainable finance to merger enforcement. (WSJ)

Amazon CEO Andy Jassy said generative AI and agents are increasingly capable of doing more tasks, which will lead the e-commerce giant to reduce its total corporate workforce. (WSJ)

Joann’s suppliers filed a lawsuit alleging executives misrepresented the craft retailer’s financial condition to persuade them to continue selling merchandise after it exited its first bankruptcy. (WSJ)

ASOS named Aaron Izzard as CFO and executive director, as the British fast-fashion firm shifts from a turnaround to growth amid competition from Shein, Temu and Vinted. (WSJ)

Swedish truck maker Volvo and Germany’s Daimler Truck launched a new joint venture to develop a software-based manufacturing platform called Coretura to build digitized commercial vehicles. (WSJ)

Ashtead Group said the move of its primary listing from the U.K. to the U.S.–where the equipment-rental firm does most of its business–was on track as it posted a decline in quarterly profit. (WSJ)

Kraft Heinz plans to remove artificial dyes from its U.S. products before the end of 2027, as the Trump administration is pushing to strip artificial dyes from the American food supply. (WSJ)

Senate Republicans detailed revisions to the House's tax-and-spending bill that included fully phasing out wind- and solar-tax credits, hitting shares of solar stocks. (WSJ)

Chobani CEO Hamdi Ulukaya said the Trump administration’s stepped-up immigration enforcement poses risks to the food supply chain, which is highly dependent on foreign-born workers. (WSJ)

Chinese state-owned Cosco Shipping and its OOCL unit carried imports of nearly 1.09 million 20-foot equivalent units to the U.S. in the first four months of 2025, up 23% year-over-year. (Journal of Commerce)

South Korea’s HD Hyundai will test at sea a 30-meter-high hard sail that can be folded in bad weather, as wind-assist technology for shipping goes mainstream. (Splash 247)

SAIC Motor, BYD, Geely and other Chinese automakers are preparing to launch models with fully domestically made chips, with two brands looking to start output as early as next year. (Nikkei Asia)

Duration Capital Partners invested more than $600 million in Watco, with the funds to be used on the rail and transportation-logistics company’s long-term strategic investments. (Trains.com)

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.