Never mind those lavish manufacturing subsidies and bulging industrial capacity, the real hero of China’s recent export surge is the country’s currency. The real effective exchange rate for the yuan, which adjusts for differences in inflation between China and its major trading partners, is back to where it was in 2014, unraveling a decade of steady appreciation. The WSJ’s Jason Douglas writes that the weakening value of China’s currency is turbocharging the country’s overseas sales at the expense of other exporting nations. The surge highlights the crucial impact that currency values can have on the international trade flow of goods. The swings in currency markets have been pronounced recently: Compared to a basket of the currencies of its major trading partners, China’s yuan has fallen 6% from a recent peak in March 2022. Emerging Asian export volumes have fallen almost 2% over the two years China’s have risen 10%. 

Biofuels in aviation are getting a lift under the Biden administration. The White House is clearing a path for ethanol and soy-based biofuel to be eligible for tax credits when used in sustainable aviation fuels. The WSJ’s Claire Brown writes that refiners can qualify for tax credits of $1.25 a gallon if the inputs are sourced from corn and soy farms that use certain “climate-smart” conservation practices. The real impact of such practices in reducing emissions is under debate. But sustainable aviation fuel is a large component of the aviation sector’s plan to reduce emissions. Yet, just 24.5 million gallons of SAF were consumed in the U.S in 2023. U.S. regulators estimate that American carriers consumed more than 12.4 billion gallons of fuel that year. Transport providers in general are still struggling to find power sources outside of fossil fuels but aviation has generally lagged behind other sectors.

• The number of new ships ordered with alternative fuel capability jumped 48% in the first four months of the year. (Seatrade Maritime)
• North American aviation companies established a coalition aimed at scaling up sustainable aviation fuel production. (Air Cargo Next)

Boeing has new problems in its supply chain, this time from an unexpected direction. The impact of Russian sanctions is reaching into the assembly line for its 787 Dreamliner jet, the WSJ’s Sharon Terlep reports, as the manufacturer of a small but crucial component struggles to keep up with demand. Supplier RTX had been making the temperature-regulating part in Russia but shifted production following Russia’s invasion of Ukraine. That worked when Boeing’s production was low, but now RTX’s new factory lines in the U.S. and U.K. aren’t making enough. It is a demonstration of how relatively simple glitches can reverberate through global supply chains. Boeing warns that it won’t deliver as many Dreamliner jets as anticipated this year. The slowdown will sap the company’s already strained cash flow, and the impact will reach the flying public. American Airlines blames Dreamliner delays for its move to trim some long-haul routes.

• Boeing locked out unionized firefighters at its 737 factory following a contract dispute. (WSJ)

Job growth in the U.S. slowed and unemployment ticked higher last month. (WSJ)

A measure of U.S. service-sector activity fell into contraction in April. (MarketWatch)

Cocoa prices fell nearly 29% over the past week to levels not seen since mid-March. (WSJ)

Daimler Truck’s adjusted operating profit in North America rose 7% last quarter. (WSJ)

Retailer Rue 21 filed for bankruptcy for the third time and plans to close its stores and sell its brand name. (WSJ)

Nippon Steel postponed the closing of its $14.1 billion takeover of U.S. Steel by three months after regulators requested more documentation. (Associated Press)

Sri Lanka’s Port of Colombo is seeing strong growth in transshipment volumes because of vessels rerouting around the Red Sea. (Lloyd’s List)

XPO’s operating income in its core less-than-truckload business jumped nearly 50% to $175 million on rising shipment levels and stronger pricing. (Trucking Dive)

Part of Interstate 95 in Connecticut will remain closed for days to demolish an overpass that was heavily damaged by a gasoline tanker fire. (WABC)

Texas-based trucker Arnold Transportation laid off its workers and ceased operations. (Truck News)

A digital freight marketplace signed truck drivers in China to a first-of-its-kind nationwide contract. (South China Morning Post)

U.K. grocery chain Tesco is seeking damages from Scania over alleged anti-competitive actions by the truck maker. (Motor Transport)

CBRE says leasing activity for warehouses greater than 200,000 square feet fell 15.8% last year and the average vacancy rate doubled. (Logistics Management)

Fulfillment provider Airhouse undertook “a major layoff” and transferred an unspecified number of customers to third-party providers. (Supply Chain Dive)

South Korea is cracking down on “shrinkflation” with an order that suppliers must inform shoppers of any reduction to product sizes. (Financial Times)

Papa John’s International named Kurt Milburn chief supply chain officer on the retirement of Shane Hutchins. (Chain Store Age)

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.