The toll that a weaker U.S. freight market is taking on carriers is becoming clearer. The first earnings report on the first quarter from J.B. Hunt Transport Services shows domestic shipping demand stumbling while pricing measures are in retreat. The WSJ’s Dean Seal reports that J.B. Hunt’s overall revenue dropped 9% to $2.94 billion, missing analyst forecasts, while the profit of $127.5 million was more than 35% behind the year-ago level. J.B. Hunt is considered a freight bellwether because of its scale and the breadth of its services across trucking and intermodal operations, so the steep declines across most business units offer a bleak view of the sector. Industry experts say rates across contract and spot markets have been in retreat this year, with the supply of trucks generally out of step with the demand. At Hunt, even the generally steady dedicated contract business fell back last quarter.

Richard Galanti learned a lot about inventory in his nearly 40 years as chief financial officer at Costco Wholesale. Galanti kept things simple, he tells the WSJ’s Jennifer Williams, in line with the company’s no-frills approach at its sprawling warehouse-like retail sites. While Galanti avoids boasting about his influence at Costco, the executive takes pride in the company’s efforts to keep inventory streamlined and prices low. A typical supermarket or discount supercenter may have 50,000 to 100,000 items, versus Costco’s 3,800. This works for Costco’s bottom line. The retailer also pursues other ways to keep its costs low. Costco also isn’t shy about flexing its size to secure better prices as “our buying power per item dwarfs anybody out there,” he said. The company caps the markups it will take on a product—15% for Kirkland Signature products and 14% for others, well below supermarket standards. 

With China producing more than 85% of the world’s batteries, the U.S. is racing to mine the metals needed for national security and products like electric vehicles. In a video report, the WSJ looks at two mining projects—the McDermitt Caldera along the Nevada-Oregon border and the Tamarack project in Minnesota—where the U.S. is hoping to generate crucial raw materials to change the battery metal supply chain.

The Biden administration wants to more than triple a key tariff rate on Chinese steel and aluminum products.  (WSJ)

The International Monetary Fund raised its outlook for global economic growth this year, largely on strength in the U.S. economy. (WSJ)

U.S. industrial output rose 0.4% for the second straight month in March. (MarketWatch)

Construction of new homes in the U.S. fell 14.7% in March, the steepest decline in nearly four years. (WSJ)

Tesla is delaying deliveries of its Cybertruck pickup without explanation. (WSJ)

International Paper is buying London-listed packaging rival DJ Smith in a deal worth about $7.2 billion. (WSJ)

U.S. lawmakers are raising national security concerns about a state-owned Chinese drugmaker with a crucial role in pharmaceutical supply chains. (New York Times)

The Dali containership had electrical problems at dockside before starting its voyage and crashing into a bridge outside the Port of Baltimore. (Associated Press)

Some Stellantis suppliers halted shipments to the automaker in an escalating confrontation over costs. (Crain’s Detroit Business)

DHL sued customer Treco over freight rates paid during pandemic-era supply chain bottlenecks. (ShippingWatch)

The Panama Canal is increasing its number of daily transit slots and raising draft limits after robust spring rain. (Lloyd’s List)

Hapag-Lloyd’s ambitious growth strategy includes investment in acquisitions and more inland transport business. (TradeWinds)

Tanker operator Euronav sold its ship management unit to Hong Kong-based Anglo-Eastern. (ShippingWatch)

CMA CGM added orders for a Boeing 777 freighter and four more Airbus A350 freighters to its fleet expansion plans. (Air Cargo News)

Amazon has installed 17,000 electric-vehicle chargers at 120 warehouses to handle its growing fleet of electric vans. (Bloomberg)

European regulators believe snack maker Mondelez restricted cross-border sales of its products to prop up prices. (Financial Times)

General Mills will consolidate some of its Midwest logistics operations into a new 1.3 million-square-foot distribution center outside Rockford, Ill. (Rockford Register Star)

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

Follow the WSJ Logistics Report team: @PaulPage, @bylizyoung and @pdberger. Follow the WSJ Logistics Report on X at @WSJLogistics.