More prohibited cotton was found in garments sold in Western countries in 2025 than the prior year for the first time in four years, according to a new report from forensic-testing company Oritain.

The report indicates that more illegal materials entered apparel supply chains as companies shifted manufacturing to minimize the impact of new U.S. tariffs, the WSJ Logistics Report’s Liz Young writes in Dow Jones Risk Journal.

Oritain anonymously sampled 1,000 finished garments from 40 brands. The New Zealand-based company benchmarked the origin of materials against the standards set by a 2021 U.S. law banning companies from importing products made with forced labor in China’s Xinjiang region. Oritain said 13% of the garments examined contained raw materials sourced from Xinjiang, up from 6% a year earlier, the first annual increase since Oritain ran its initial report in 2021.

Hapag-Lloyd maintained its guidance for the year ahead, but warned that the Iran war was increasing costs by disrupting its regional liner network and boosting fuel prices. The German carrier expects these costs to be partly offset by higher average freight rates, The Wall Street Journal’s Dominic Chopping reports.

Bad weather in Europe and North America resulted in delays and additional costs from disruption to terminal operations and supply chains, at the same time as the blockage of the Strait of Hormuz led to further pressure from disrupted trade flows. 

President Trump and Chinese leader Xi Jinping agreed the Strait of Hormuz should remain a free waterway and the Iranians shouldn’t be able to exact a toll for use of the shipping lanes, according to a White House readout of talks in Beijing between the two leaders.

Beijing “expressed an interest” in increasing its purchases of U.S. oil to reduce the “dependence” on oil traveling through the waterway, according to the White House summary, suggesting that the Chinese government may reduce the amount it spends on Iranian oil. Currently Beijing is the largest importer of Tehran’s oil.

• A vessel was reported taken by “unauthorized personnel” off the U.A.E., according to U.K. Maritime Trade Operations, which said it was bound for Iranian waters. (WSJ)
• California-based Perfectus Aluminum and several affiliates agreed to pay nearly $550 million to settle allegations they deliberately evaded duties on imports from China. (Dow Jones Risk Journal)

• Wholesale inflation jumped to the highest reading in several years in April, with prices charged by producers rising by 1.4% in April from the month before, blowing past March’s 0.7% increase, according to the Labor Department. (WSJ)
• Eurozone industrial output rose 0.2% in March, after a 0.2% rise in February, despite rising energy costs. (WSJ)
• Walmart said it would cut or relocate about 1,000 corporate jobs as it looks to combine more of its global-technology and product teams. (WSJ)
• Shares of Ford Motor surged as investors cheered the automaker’s increased focus on using batteries once meant for EVs as stationary energy-storage systems. (WSJ)
• Mind Robotics, a startup founded by Rivian’s CEO, raised an additional $400 million to pursue development of industrial robots for vehicle production and beyond. (WSJ)
• Equinox Gold and Orla Mining agreed to combine, creating a new $18.5 billion North American gold producer that will keep the Equinox name. (WSJ)
• Samsung Electronics’ talks with its labor union failed over profit distribution, leading to a planned strike by unionized workers in South Korea from May 21 to June 7. (WSJ)
• Nissan Motor forecast that a series of restructuring steps would return the automaker to profit this year, as it posted its seventh straight quarterly loss. (WSJ)
• Perennial Autonomy, maker of the Merops drone interceptor, joined with Twentyfour Industries to manufacture the product in Germany. (WSJ)
• Maryland reached a $2.25 billion settlement with Grace Ocean Private, the owner of the containership Dali, which struck Baltimore’s Francis Scott Key Bridge in 2024, killing six people. (Maryland Matters)
• Waymo is recalling 3,781 robotaxis to fix an issue with the automated-driving system that could allow the vehicles to drive on flooded roads. (Bloomberg)
• The U.S. House of Representatives passed legislation to combat retail and cargo theft. (The Trucker)

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.