The squeeze at the Panama Canal is getting tighter. Officials are cutting available slots for ship transits by half this winter as a drought that has already triggered lengthy backups gets even worse. The WSJ’s Costas Paris reports the latest changes come after Panama experienced its driest October on record, extending a monthslong spell of warmer temperatures and low rainfall. The canal administration said daily reservation slots will be cut to 25 this month, 22 in December, 20 in January and 18 in February. Last month the canal had 32 daily transits. The waterway can normally handle an average of 40 transits a day. Authorities say about 98 vessels are waiting to cross at both sides of the canal. Containerships that have fixed schedules and booked slots months in advance aren’t facing serious delays, but crude and gas tankers calling on short notice can be trapped for weeks.

• The owner of a gas carrier paid a record $2.85 million at an auction for a slot to get the vessel through the Panama Canal. (TradeWinds)

The global semiconductor industry is bottoming out, signaling a potential rebound in a technology sector crucial to airfreight demand. In recent weeks, executives at Intel, Taiwan Semiconductor Manufacturing and Samsung Electronics have expressed confidence that the worst is over for the slumping chip industry. The WSJ’s Jiyoung Sohn and Asa Fitch report the emerging recovery of the semiconductor market suggests the global economy has resilience despite challenges. Chips are often a bellwether because they are used in many products ranging from PCs and smartphones to cars. World airfreight flows have slowed this year as demand for high-value electronics has sagged, although some industry data providers say shipping demand has turned upward recently. International Business Strategies projects semiconductor revenue worldwide will fall by about 12% this year but rebound next year by more than 11%. Still, few chip-sector executives expect an immediate return to the frenzied demand of 2020.

• Vietnam is talking with chip companies about building the first semiconductor plant in the country. (Reuters)

Forward Air faces a steep uphill climb in any effort to terminate its agreement to buy freight forwarder Omni Logistics. The target of the controversial acquisition is suing Forward Air to ensure the deal goes through after the expedited trucker expressed reservations about the combination. The WSJ’s Jon Sindreu writes in a Heard on the Street column that the ongoing soap opera essentially puts Forward Air in the position of Elon Musk, who stamped his signature on a $44 billion deal to buy social-media giant Twitter (currently rebranded as X) last year, and then attempted to get out of it. At Forward Air, investors are up in arms about the $3.2 billion price tag placed on Omni and at the huge amount of debt they would be taking on. But Forward Air will struggle to prove that one of its trusted suppliers breached agreements and covenants.

The Federal Reserve left interest rates unchanged but kept the door open to potentially raising them later. (WSJ)

A closely watched measure of U.S. manufacturing activity fell deeper into contraction territory in October. (MarketWatch)

South Korea’s exports rose in October after 12 straight months of decline. (WSJ)

Flexport has acquired the technology of collapsed digital freight business Convoy. (WSJ)

Toyota is raising wages for its U.S. factory workers after the United Auto Workers won major pay and benefit hikes from the Detroit Three automakers. (WSJ)

Denmark’s Orsted is dropping plans to build two wind farms off the coast of New Jersey, citing issues including supply chain challenges. (WSJ)

China’s major makers of premium electric vehicles reported record monthly deliveries in October. (South China Morning Post)

Aston Martin lowered its annual delivery outlook after supply-chain issues hampered output of its new sports car. (Bloomberg)

Bangladeshi garment workers launched large-scale protests calling for higher factory wages. (Associated Press)

Cosco Shipping Holdings’ third-quarter profit fell 83% to about $739 million. (ShippingWatch)

Hyundai Motor plans to order 12 large car carriers under a $1.84 billion deal for the vessels. (Splash 247)

XPO is adding tens of millions of dollars in capital spending to handle volumes from former Yellow customers. (Fleet Owner)

Walmart opened a 1.5 million-square-foot, highly automated fulfillment center outside Dallas. (Supply Chain Dive)

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.