China is fortifying its shipbuilding industry in the face of rising maritime competition.

China State Shipbuilding is taking over China Shipbuilding Industry in a $16 billion deal that will create the world’s largest shipbuilder.

The WSJ’s Clarence Leong and Costas Paris write that the merged company hopes to use its bulk to cut costs and ride out industry turmoil prompted by rising geopolitical tensions and U.S. attempts to undermine China’s maritime dominance.

Beijing set its sights on dominating the shipbuilding industry decades ago, and now Chinese shipbuilders make up more than half of the global market.

Together, the two companies accounted for almost 17% of the global market last year, based on new-orders data from Clarksons Research. The merged company’s combined order book will total more than 530 vessels and 54 million deadweight tons, with an annual revenue of around $18 billion.

Recent data suggest China is facing rougher times because the prospect of U.S. port fees on Chinese-made ships has prompted owners to look at non-Chinese shipyards. Trump’s tariffs and countries’ focus on domestic supply chains have also raised the specter of less global trade overall, meaning fewer ships would be needed to carry goods.

• China’s Yangzijiang Shipbuilding reported a record-setting profit of $580 million in the first half of 2025. (The Maritime Executive)
• Chinese liner operators are adjusting trans-Pacific services to limit exposure to U.S. port fees. (TradeWinds)
• Italian shipbuilder Fincantieri is suing a U.S. supplier after allegedly suffering more than $100 million in damages from “fraudulently” certified insulation panels. (Financial Times)

USA Rare Earth is seeing a swell of customer interest as it prepares to kick off production at a new magnet facility.

The mining and magnet company has signed 12 memorandums of understanding and joint development agreements, representing potentially 300 tons of annual production with customers in the aerospace and defense, data-center and automotive sectors.

The WSJ’s Kelly Cloonan reports that the uptick in demand comes after Beijing tightened the controls it places on the export of rare earths earlier this year. The restrictions have drastically raised the costs of such materials elsewhere as companies look to shift their supply chains.

USA Rare Earth says it is now looking to accelerate and strengthen its mine-to-magnet supply chain, growing its business with targeted internal investments while keeping an eye on joint ventures and acquisitions. It expects its growth efforts to get a boost from the Trump administration’s recent focus on rare earths.

Inflation held steady in July, but a key measure of underlying price growth picked up. (WSJ)

U.S. small businesses grew increasingly upbeat in July as conditions improved. (WSJ)

Spirit Airlines says it may not continue to operate if its financial results don’t improve faster than it previously expected. (WSJ)

Orient Overseas Container Line has launched a new transpacific service that offers direct connections between China and Mexico. (Container Management)

Nearly 10,500 U.S. Postal Service employees accepted the agency’s voluntary early retirement offer this year. (Supply Chain Dive)

Freight broker Echo Global Logistics acquired Southern California-based third-party logistics provider FreightSaver. (Journal of Commerce)

Truck manufacturers are suing California regulators, saying the state lacks the authority to enforce heavy-duty vehicle emissions standards. (The Hill)

Uber Freight CEO Lior Ron has joined autonomous trucking company Waabi as chief operating officer. (Transport Topics)

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.