U.S. manufacturing is entering a golden age, as long as you are looking at the right sort of factory. Government subsidies sparking a boom in factory construction focused on the high-tech sector, while other industries struggle with a pandemic-induced inventory overhang and high interest rates. The WSJ’s David Harrison reports the broad manufacturing sector is mired in the longest slump in more than two decades, with overall factory activity weakening for 13 straight months, the longest stretch since 2002. Economists expect factory output to pick up as the Fed cuts rates and the effects from the inventory buildup of 2022 and early 2023 fade. Bringing new factories online would further support growth. Spending on manufacturing construction rose almost 40% in 2022 and is up a further 72% through the first 10 months of 2023. Still, administration subsidies target semiconductors and other high-technology industries that comprise 1.9% of industrial production.

• Construction spending across the U.S. rose 0.4% in November from an upwardly revised October level. (MarketWatch)

Electric-vehicle supply chains are tilting more than ever toward China. Chinese automaker BYD for the first time topped Tesla as the world’s largest seller of EVs on a quarterly basis. The WSJ’s Rebecca Elliott reports the figure is a sign of China’s emerging strength in the global market for battery-powered cars, just as supply chains and ecosystems of suppliers to support the sector are still forming. BYD sold more than 526,000 fully electric vehicles in the fourth quarter of 2023, compared with Tesla’s sales of nearly 485,000. Tesla’s growth rate slowed slightly as the company navigates an increasingly competitive market defined by more gradual expansion and slimmer profit margins. Warren Buffett-backed BYD, meanwhile, is maintaining a rapid growth pace in its China base while focusing more than ever on exports. BYD’s overseas sales in the second half of 2023 more than tripled from a year earlier.

A.P. Moeller-Maersk is pausing all transit through the Red Sea and Gulf of Aden until further notice. (WSJ)

Container lines announced a series of general rate increases and surcharges on Asia-Europe trade now sailing around the Suez Canal. (Journal of Commerce)

Authorities are investigating the collision of a Japan Airlines A350 and a coast guard aircraft at Haneda Airport that set the jet on fire and killed five people on the smaller plane. (WSJ)

The Biden administration extended for two years the suspension of Trump-era tariffs on European steel and aluminum imports. (WSJ)

A judge is allowing U.S. affiliates of Irish air conditioning manufacturer Trane Technologies to remain in bankruptcy. (WSJ)

Nippon Steel and Toshiba halted operations at factories as the impact of a 7.6-magnitude earthquake in Japan spread across business and logistics operations. (Nikkei Asia)

India is increasing imports of Saudi oil as payment problems drove its Russian crude buys to an 11-month low. (Reuters)

China’s Cosco Shipping ordered six product tankers in its first orders in that market in four years. (TradeWinds)

Mexico is targeting Chinese steel imports with a nearly 80% increase in tariffs on goods the country believes are being transshipped through Vietnam. (South China Morning Post)

United Parcel Service is halting the day sort of packages at its regional Centennial hub in Louisville, Ky. (Louisville Courier Journal)

Global air cargo volumes rose in the fourth quarter for the first time in 2023. (Air Cargo News)

Amazon began producing hydrogen for its fuel-cell lift trucks at its Aurora, Colo., fulfillment center. (Supply Chain Digest)

Suburban Chicago residents are pushing back against plans for logistics centers closer to residential neighborhoods. (Chicago Tribune)

GXO workers at an Iceland distribution center for grocer Swindon walked off their jobs in a pay dispute. (BBC)

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.