Russia’s invasion of Ukraine is threatening a big portion of the world’s wheat supply and raising fears over potential global food shortages. Wheat prices are already on a dizzying ride to new highs, the WSJ’s Ryan Dezember reports, and stockpiles are running low as countries that depend on imported grain grow more alarmed. Grain markets are in turmoil, with the benchmark U.S. price for wheat up 72% from a year ago. That points to more inflation of food prices. Analysts and traders still don’t know to what extent global wheat supplies will be dented by the war. The last of last year’s crop has been held back because Ukrainian ports are closed and bulk carriers are reluctant to enter a war zone to fetch Russian wheat. It remains unclear if growers in the region will even be able to harvest winter wheat or plant spring crops in the coming weeks.

Here are other developments following Russia’s invasion of Ukraine:

• A Russian airstrike killed 35 people at a Ukrainian military training center near the Polish border, soon after Moscow warned it would consider arms deliveries to Ukraine as legitimate targets. (WSJ)
• Customs officials at some U.S. ports are blocking Ukrainian and Russian seafarers from entering the country. (WSJ)
• More than 500 commercial leased aircraft owned by western companies are stranded in Russia. (Financial Times)
• Food and agriculture giant Cargill plans to continue operating its food and animal-feed facilities in Russia. (WSJ)
• Shipping classification societies are starting to pull out of services to Russia’s maritime sector. (Lloyd’s List)
• A.P. Moller-Maersk is selling its 30% stake in Russian port and terminal operator Global Ports. (ShippingWatch)
   

For the latest updates from Russia and Ukraine, click here.

Efforts to isolate Russia through sanctions are growing to take in broader trade relations. The U.S. plans to sever normal trade ties with Russia, including banning imports of its signature seafood, vodka and diamonds, the WSJ’s Yuka Hayashi and Anthony DeBarros report, as Washington joins other countries in ratcheting up economic pressure on Moscow for its invasion of Ukraine. That would align the U.S. with similar moves by the European Union to allow countries to raise tariffs on Russian exports, effectively changing the country’s trading equilibrium. The actual impact on U.S. importers would be relatively slim since Russia was just the U.S.’s 23rd-largest trading partner in 2021 with $36.1 billion in two-way goods trade. The EU is the most important destination for Russia’s exports, purchasing 41% of the total value in 2019, with goods that go far beyond the seafood, vodka and diamond exports the U.S. is targeting.

FedEx is facing new conflicts with contractors in its Ground division. Hundreds of drivers in the parcel operation complained to the company that poor forecasting and tougher demands left them financially hobbled during the past peak season, the WSJ’s Paul Ziobro writes. The complaints come in a business unit critical to e-commerce services and suggest the company continues to wrestle with how to match capacity to demand during the pandemic-driven upheaval in the retail sector. FedEx’s operating margin at the Ground unit deteriorated in the six months ending Nov. 30 as costs outpaced revenue gains. The contractors say some of those expenses hit them hard, including demands to rent equipment that ended up going unused. FedEx uses delivery contractors to insulate the company from the cost of using full-time employees. The Ground division contractors deliver 60% of the packages FedEx handles daily, providing an outsize impact on the company’s business.

A measure of U.S. consumer confidence fell on growing inflation concerns. (MarketWatch)

China’s Huawei Technologies is gaining strong software sales as restrictions by the U.S. and other countries hit its hardware business. (WSJ)

China placed the major port city of Shenzhen under lockdown after a Covid outbreak. (Agence France-Presse)

Jet fuel prices have surged to near the highest levels in 14 years. (Reuters)

The world’s largest maker of gold and silver mining material suspended production in Europe over soaring energy costs. (Financial Times)

Contract manufacturer Foxconn has lined up major automotive suppliers among 100 Japanese companies supporting its electric-vehicle project. (Nikkei Asia)

China’s electric-vehicle sales fell at a double-digit pace for the second straight month in February. (South China Morning Post)

The number of active oil rigs in the U.S. reached its highest level in 23 months. (Dow Jones Newswires)

FedEx named Richard Smith, regional president for the Americas and a son of founder Fred Smith, to succeed Donald Colleran as head of FedEx Express. (Memphis Commercial Appeal)

Singapore Airlines will operate five 777 freighters for DHL out of Singapore. (Air Cargo News)

XPO Logistics struck an agreement in the U.K. to raise pay for drivers by 8% and warehouse workers by 13% over 15 months. (Motor Transport)

Cargo theft across North American supply chains declined 15% in 2021. (Overdrive)

Demand on Asia-to-North Europe container shipping lanes has fallen behind capacity. (The Loadstar)

The U.K. plans to pump nearly $5.3 billion into the country’s shipbuilding sector. (MarineLink)

The Georgia Port Authority will spend $150 million to increase its vehicle and breakbulk handling capacity. (Journal of Commerce)

A report shows second-tier ports have lost large amounts of container shipping capacity as liner companies have shifted vessels to major routes. (Splash 247)

A pair of labor actions could lead to a shortage of shipping labels. (Supply Chain Brain)

Paul Page is editor of WSJ Logistics Report. Write to him at paul.page@wsj.com.

Follow the WSJ Logistics Report team: @PaulPage, @pdberger. and @LydsOneal. Follow the WSJ Logistics Report on Twitter at @WSJLogistics.