Covid-19 lockdowns in key Chinese manufacturing and shipping hubs are raising alarms over a potential new wave of supply-chain disruptions. China locked down the cities of Shenzhen and Changchun in recent days, the WSJ’s Yang Jie and Yoko Kubota report, and companies including Apple supplier Foxconn Technology Group, Volkswagen and Toyota have suspended factory operations. More than 40 Taiwan-based makers of semiconductors and other electronic components said they were suspending work in Shenzhen and nearby Dongguan. Logistics operators are warning of potential delays over the lockdowns in Shenzhen, a key export hub with the world’s fourth-largest container port. Vessels are moving and delays may amount to only a few days if the city opens up again by the weekend. China’s case numbers are tiny by global standards, but the country has adopted a zero-Covid policy that has resulted in several lockdowns that have led to production snags for exporters.

• Hundreds of passenger flights were canceled at Shanghai’s airports because of Covid restrictioms. (South China Morning Post)

Turmoil in nickel markets is reaching manufacturing supply chains. An unprecedented surge in prices for the metal is disrupting factories in China that make nickel-related products, the WSJ’s Rebecca Feng reports, as the trading fiasco triggered in part by Russia’s invasion of Ukraine reverberates around the world. Prices of the key ingredient used in stainless steel and electric-vehicle batteries skyrocketed last week following an epic short squeeze focused on China’s biggest nickel and steel producer. Now, several Chinese companies are warning of supply hiccups, price hikes, or slowdowns in their ability to fulfill orders. A base-metals producer in Australia says its planned $800 million purchase of a nickel miner could be delayed because of the huge nickel price move. The London Metal Exchange has suspended trading until Wednesday because prices were racing skyward. For now, it looks like supply-and-demand fundamentals in the market aren’t worth a dime.

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

• Diplomatic efforts to end Russia’s war in Ukraine showed no signs of progress as missile attacks struck military and civilian sites and fighting for the Ukrainian capital of Kyiv intensified. (WSJ)
• Russian officials are threatening to arrest Western corporate leaders there who criticize the government or to seize assets of companies that withdraw from the country. (WSJ)
• The International Association of Classification Societies dropped Russia’s shipping register organization from its membership, potentially leaving the country’s vessels without insurance. (WSJ)
• President Vladimir Putin signed a law allowing Russian airlines to keep foreign aircraft for domestic flights. (WSJ)
• Agricultural giant Bayer says it may withhold seeds for crops in Russia next year if the war in Ukraine continues. (WSJ)
• German business leaders are steeling themselves to sever ties to Russia. (Financial Times)
   

For the latest updates from Russia and Ukraine, click here

The “just-in-case” supply chain may have just saved the semiconductor industry. Production of vital raw materials for chip making that is concentrated in Russia and Ukraine has been severely disrupted. But the WSJ’s Asa Fitch writes that the sector has been better prepared to manage the turmoil caused by Russia’s invasion of Ukraine because companies have reset operations to stress resilience following two years of shocks to demand and supply. Companies have shored up supply chains, in some cases adding alternative suppliers to gain flexibility in the face of supply disruptions. They also have stocked up on important chip-making materials, including those produced in Russia and Ukraine. Industry expert Mark Thirsk of Linx Consulting says companies that used to have just-in-time strategies for high-value components now typically have a six-week to three-month reserve. Producers including TSMC and Infineon Technologies say they don’t anticipate supply problems from the conflict.

• Foxconn is in talks with Saudi Arabia about jointly building a $9 billion manufacturing site that could make microchips, electric-vehicle components and other electronics. (WSJ)

The state of New York is asking the Supreme Court to stop New Jersey from dismantling the bistate agency that fights crime at the East Coast’s busiest port. (WSJ)

The New York Fed says households’ expectations for near-term inflation surged to record levels last month. (WSJ)

Ford plans to invest $2 billion in the production of two new fully electric vehicles at its Cologne, Germany plant. (WSJ)

Rio Tinto is offering roughly $2.7 billion to buy out minority shareholders in a business running a giant copper-mining operation in Mongolia. (WSJ)

South Korea’s SK Innovation plans to build an automotive battery plant in Turkey with Ford and local group Koc Holding. (Nikkei Asia)

Toyota has started exporting vehicles made at its Burnaston plant in the U.K. to Europe by rail rather than truck. (Automotive Logistics)

A coalition of groups has called off a global boycott of cotton from Uzbekistan that has gone on for more than a decade. (Sourcing Journal)

The U.S. Coast Guard was trying to free an Evergreen Marine container ship that ran aground in the Chesapeake Bay near the Port of Baltimore. (WBAL)

Danaos is buying two mid-sized container ships from China’s Dalian Shipbuilding Industry. (TradeWinds)

U.S. trucking customers are consolidating more loads and switching modes to avoid fast-rising fuel prices. (Journal of Commerce)

Costco is delivering about 85% of its less-than-truckload shipments through its own Costco Logistics subsidiary. (Transport Dive)

Electric truck maker Nikola is looking to raise about $1.4 billion by issuing 200 million new shares. (CNBC)

Fillogic CEO Bill Thayer says private industry rather than government authorities are best suited to solve ongoing supply-chain congestion. (Dow Jones Newswires)

United Parcel Service deliveries to Nantucket are in question after the carrier failed to secure high-demand reservations on island ferries. (N Magazine)

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.