A rebound in the container shipping sector may be taking shape. Germany’s Hapag-Lloyd offered the strongest sign yet that a recovery for carriers is gaining momentum, as the world’s fifth-largest container line boosted its outlook for the year and said it had seen a strong increase in demand in recent weeks. The WSJ’s Dominic Chopping reports that the improving demand comes while freight rates are surging as ship diversions around the Red Sea crisis tighten vessel capacity. The Shanghai Containerized Freight Index, a key pricing measure, is up 19% over the past two weeks, and industry group Freightos expects rates to rise still higher ahead of the peak fall shipping season. Hapag-Lloyd CEO Rolf Habben Jansen says it’s still unclear, however, whether the recent jump in demand and prices is the result of “a short-term spike, or does it really have to do something with an early peak season.”

• Alphaliner says Red Sea diversions have left capacity on Asia-Europe lanes​ about 10% short of demand. (The Loadstar)
• Seafarers say officials at various ports around the world routinely demand cash, cigarettes, food and drink as bribes before allowing ships through. (BBC)
• John Fredriksen-owned SFL’s quarterly profit jumped 43% to $45.3 million amid growing vessel charter agreements with Maersk Line. (ShippingWatch)

Chinese automakers may be locked out of the U.S., but they’re focused on a different market: the rest of the world. Analysts say the tariffs on Chinese electric vehicles that Washington is rolling out won’t change the carmakers’ global ambitions but will trigger changes in strategy. The WSJ’s Yoko Kubota and Sha Hua report companies led by market leader BYD will emphasize emerging markets and localize production where possible as they look to work with governments that are more open to Chinese EVs. Some companies also may focus on supplying EV technology, an approach that could lessen the political backlash and offer an indirect path to U.S. business. Within China, more than 100 EV brands are battling for market share, driving down prices and profitability. China’s capacity is running above domestic demand, and makers are looking abroad, where they believe margins will be higher and competition softer.

• Chinese EV maker BYD is launching a hybrid pickup truck available only in Mexico. (Reuters)

U.S. inflation eased slightly in April, with a key measure of price pressures slowing to its lowest level since spring 2021. (WSJ) 

Retail sales in the U.S. were flat last month on weaker car business and a 1.2% drop in the category including e-commerce. (MarketWatch)

The International Energy Agency cut its forecast for oil-demand growth this year. (WSJ)

The Justice Department says Boeing violated a settlement over its employees’ roles in two fatal jet crashes. (WSJ)

German industrial producer Thyssenkrupp cut its sales and profit forecasts​ for the second time in recent months. (WSJ)

Casual-dining restaurant chain Red Lobster is expected to file for bankruptcy as early as next week. (WSJ)

The crude tanker sector is in a bull market, with spot rates rising, ship orders surging and vessel values on the upswing. (Financial Times)

U.K. lawmakers voted to follow Australia in banning the transport of live animals for slaughter. (Splash 247)

Abu Dhabi-based operator AD Ports more than doubled its revenue in the first quarter from the year-earlier period. (Seatrade Maritime)

A barge slammed into a bridge in Galveston, Texas, collapsing part of the structure and closing the waterway for a time. (Associated Press)

The U.S. Postal Service is pausing consolidation of its processing network after lawmakers questioned the impact on mail deliveries. (Supply Chain Dive)

Shortline Patriot Rail named Port of New Orleans CEO Brandy Christian as its new chief executive. (Railway Age)

Half of Amazon warehouse workers in a survey said they struggle to afford food and a place to live. (Bloomberg)

Retailer Tractor Supply opened a 1.15 million-square-foot distribution center outside Little Rock, Ark. (KATV)

Acquisition-focused industrial packaging distributor Imperial Dade bought Rochester, N.Y.-based 3G Packaging. (Rochester Business Journal)

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.