Beijing is escalating tensions in the South China Sea. The Chinese coast guard earlier this week used axes, knives and spears to attack vessels resupplying a Philippine military outpost. The WSJ’s Niharika Mandhana reports the conflict is the first time China has used bladed weapons to confront Philippine seamen and raises the risk of conflict between China and a key U.S. ally. The tensions threaten global supply chains that are already straining because of disruptions at the Suez Canal leading to shipping delays, port congestion and higher freight costs. China is flexing its muscle over a submerged reef on which the Philippines staked a claim 25 years ago by running a dilapidated warship aground. China says it controls the area and most of the South China Sea. Philippine President Ferdinand Marcos Jr. recently warned if a Filipino dies in a confrontation he will consider it an “act of war.”

• The Philippines plans to build 17 new deep-water ports to bolster its supply chains for rice and other agricultural products. (Nikkei Asia)

The business of transporting hydrogen is getting a lift. Private-equity firm Antin Infrastructure Partners is investing $100 million in hydrogen-equipment specialist GTL Leasing. The WSJ’s Luis Garcia writes the investment will help GTL extend its offerings of special tanks that keep compressed hydrogen in liquid state at low temperatures so they can be transported easily. Governments are pushing industries including trucking toward hydrogen as part of a pivot away from fossil fuels such as diesel. But the U.S. has a limited supply of hydrogen and a limited number of pipelines to distribute the gas throughout the country. Firms such as GTL can help companies that need to transport and store hydrogen. Their clients include hydrogen producer Linde Engineering, telecommunications giants AT&T and Verizon Communications, and makers of hydrogen fuel-cell trucks. Antin’s bet is its client list will only grow as more companies are pushed toward the gas.

Construction of new homes in the U.S. fell last month to the lowest level in four years. (MarketWatch)

New Zealand’s farm-rich economy exited recession in the first quarter. (WSJ)

Honeywell International is buying aerospace and defense technology company CAES Systems in a roughly $2 billion deal. (WSJ)

Private-equity firm Carlyle Group is expanding its energy assets with the acquisition of operations in Italy, Egypt and Croatia from Energean. (WSJ)

The European Union will bar Russian liquefied natural gas exporters from using European ports to transfer seaborne shipments. (Financial Times)

Dali crew members can go home under an agreement that allows lawyers to question them amid investigations of the deadly collapse of Baltimore’s Francis Scott Key Bridge. (Associated Press)

India’s government approved a $9 billion plan to build a container port on the west coast north of Mumbai. (Maritime Executive)

CMA CGM is preparing an approximately $3.5 billion order for 20 mid-size containerships at HD Hyundai shipyards. (TradeWinds)

South Korean conglomerate Hanwha is buying U.S. shipbuilder Philly Shipyard for $100 million in cash. (Splash 247)

Expedited trucker Forward Air is cutting another 150 jobs, including workers in sales and technology. (The Loadstar)

Canadian trucking group TFI International acquired food-grade tanker operator Entreposage Marco. (Trucking Dive)

Italy fined a local automobile company $6.4 million for illegally labeling vehicles from Chinese manufacturers as Italian made. (South China Morning Post)

Apparel companies including Gap and H&M joined an initiative aimed at cutting renewable-energy costs for tier 1 and tier 2 suppliers. (Supply Chain Dive)

Teamsters-represented workers launched a strike at two Southern California warehouses serving Smart & Final grocery stores. (Orange County Register)

Canadian supermarket chain Sobeys pushed back the opening of an automated fulfillment center built by online grocer Ocado. (Dow Jones Newswires)

Steffen Reiche will replace Josef Baumert as member of the Volkswagen Commercial Vehicles management board responsible for production and logistics. (Automotive Logistics)

• Can farmland in the tropics be turned back into the carbon-packed forests they once were? Microsoft and other investors are betting on it.
• Delta, Macy’s and “fallen angels” are slashing debt and fortifying balance sheets to recoup their investment-grade ranking, a halo they lost in 2020.  
• A healthy-food startup backed by NBA stars Chris Paul and Kevin Love is mired in legal accusations brought by another investor and the company’s executives.
• Tech billionaires want to build a brand new city outside San Francisco. First, they have to convince local voters.

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.