Food supply chains are reeling from a new cyberattack. A ransomware attack took a big chunk of meatpacker JBS’s U.S. beef-and-pork processing offline, the WSJ’s Jacob Bunge reports, sending buyers scrambling for alternatives and raising pressure on meat supplies. Brazil-based JBS is the world’s biggest meat company and the White House says it told the administration the attack originated from a criminal group likely based in Russia. The attack halted operations at some of the largest plants across the U.S., and chicken-processing sites across the country run by JBS-owned Pilgrim’s Pride also suspended shifts. JBS expects most of its operations to be back to normal today, but the attack raises pressure on food-supply chains already under strain from labor shortages, production constraints and high transportation costs. Consumer prices were already rising as a result, and analysts say the disruption could lead to more price increases.

China’s factories are buckling under the weight of rising raw materials prices. Some manufacturers are refusing to accept new orders and are even considering suspending operations, the WSJ’s Stella Yifan Xie writes, as the added costs weigh on production and threaten to further strain global supply chains. Although many manufacturers have passed along higher costs to overseas buyers, some are finding it hard to raise prices enough to make up the difference. The quandary is the latest result of pandemic-led disruptions that have thrown supply and demand fundamentals off balance, triggering shortages in many sectors and soaring prices for many commodities. China’s factory owners hope that if they delay orders or slow production, they will be able to ride out the present period until commodity prices normalize or global demand for consumer goods cools. The more immediate impact may be more inflation across supply chains, right down to store shelves.

Growth in American manufacturing supply chains is starting to tilt toward the Southwest. Companies producing a wide range of goods are planning and building new plants in a region far from the historical hubs of American industry in the Midwest and Southeast. The WSJ’s Ben Foldy and Austen Hufford write that the region comprising Arizona, New Mexico, Texas and Oklahoma is luring factories including semiconductor makers with open land, local tax breaks and a growing supply of tech-savvy workers. Those states plus Nevada added more than 100,000 manufacturing jobs from 2017 to 2020, representing 30% of U.S. factory job growth. The region is outside the more central logistics hubs, and the boom in factory construction suggests more freight rail operations and trucking services are likely to follow. Transport and logistics expansion will accelerate if the region benefits from reshoring as a result of recent global supply chain disruptions.

OPEC and its allies say they will step up production after oil prices started the week reaching a two-year high. (WSJ)

The Biden administration is putting a hold on oil and gas leases in the Arctic National Wildlife Refuge in Alaska. (WSJ)

Supply-chain technology provider project44 raised $202 million in a Series E funding round led by Goldman Sachs Asset Management. (WSJ)

Amazon has changed its terms of service to allow customers to file lawsuits rather than go through arbitration. (WSJ)

Finance chiefs at apparel retailers are working to reduce inventories as they focus on increased profitability. (WSJ)

The U.S. banned imports from China’s Dalian Ocean Fishing, citing evidence of forced labor on its vessels. (WSJ)

South Korea’s exports rose in May at the fastest rate in 32 years. (Reuters) 

Some 44 container ships with combined capacity exceeding 470,000 containers are anchored off China’s Yantian port as the key gateway faces deep congestion and extensive backlogs. (Lloyd’s List)

Some big bicycle makers are considering shaking up their supply chains as they face what they say are the longest delays in decades for parts deliveries. (Financial Times)

An analysis of federal data shows that serious injury rates at Amazon warehouses are nearly double the rate of other companies’ facilities. (Washington Post)

Instacart plans to automate its fulfillment operations and replace many of its gig-economy workers with robots. (Bloomberg)

Retailer American Eagle Outfitters has pared its product assortment to improve goods flow in its supply chain. (Supply Chain Dive)

Environmental protests are adding to delays and congestion at Germany’s Port of Hamburg. (Splash 247)

Denmark-based ship operator Norden sharply raised its earnings guidance on strong growth in dry-bulk shipping demand. (ShippingWatch)

Sri Lankan authorities have detained the captain and top engineers of a container ship that has been burning off the country’s coast. (The Loadstar)

Container ship owner Costamare raised its dividend after first-quarter profit more than doubled to $68.1 million. (TradeWinds)

Trucker Knight-Swift Transportation is buying freight broker UTXL in a roughly $22.5 million deal. (Dow Jones Newswires)

Less-than-truckload carrier Estes is adding 1,200 trucks and 3,800 trailers in a sharp capacity expansion. (Transport Dive)

Lufthansa Cargo ordered its 11th new 777 freighter from Boeing. (Air Cargo News)

Sennder raised $80 million in a supplemental funding round that values the European digital freight forwarder at more than $1 billion. (Post & Parcel)

Austria-based logistics provider Gebrüder Weiss acquired the business of Rhenus Bulgaria. (Lloyd’s Loading List)

An unnamed online retailer bought a 512,000-square-foot warehouse in the U.K.’s West Yorkshire area. (Logistics Manager)

Paul Page is editor of WSJ Logistics Report. Write to him at paul.page@wsj.com.

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