Weakening demand at factories around the world is casting a cloud over future shipping demand. New surveys of manufacturers show output is falling or is rising at a slower pace whether the plants are in the U.S., South Korea or Italy. The WSJ’s Paul Hannon and David Harrison report the slowdown is driven by declining new orders, particularly those from overseas buyers. The pullback is a sign that the consumer-goods boom that kick-started the postpandemic economic recovery and fueled surging cargo flows could turn into a bust as rising prices and interest rates erode spending power. The Institute for Supply Management’s measure showed U.S. factory activity grew in June at the slowest pace in two years and new orders fell for the first time since 2020. A separate report from S&P Global showed output at U.S. and eurozone factories falling sharply last month amid expectations of declining production.

• Germany’s exports fell 0.5% in May, giving the country its first trade deficit in three decades. (WSJ)
• Eurozone inflation rose at a record 8.6% pace in June. (MarketWatch)

The secondary supply chain for excess inventories is picking up speed. The goods that are piling up in warehouses and on balance sheets of big retailers are proving a boon for liquidators and other companies that help dispose of overstocked items. The WSJ’s Suzanne Kapner reports that liquidators including Liquidity Services and Xcess Limited are seeing a glut of kitchen appliances, televisions, outdoor furniture and apparel that major chains are trying to clear out. Liquidators are even picking up pallets at ports or freight hubs without the goods ever hitting store shelves as they rush to divert shipments to resellers and discounters. One official says retailers are asking liquidators to jump into the distribution process earlier than they have in the past. That’s a sign of the speed of the demand pivot this year, and the urgency of the inventory correction that retailers are trying to manage.

Coal is becoming the unlikely star of commodities markets. An energy-starved world is turning to the fuel amid shortages of natural-gas and oil that are being exacerbated by Russia’s war against Ukraine. The WSJ’s Jenny Strasburg and Phred Dvorak report that many of the world’s largest economies are increasing short-term coal purchases to ensure sufficient supplies of electricity despite prior pledges to reduce their coal consumption. Coal is also in short supply after years of declining investment in new mines and resources, which is driving spot prices on global markets to record highs. Europe is trying to wean itself off Russian gas while barring imports of Russian coal. Countries are rejiggering distribution channels to obtain more coal from big suppliers such as Australia and the U.S. But the U.S. would have to pour significantly more money into coal production to increase output.

The surge comes as prices for raw materials ranging from oil and natural gas to corn, wheat and lumber ended a tumultuous second quarter closer to or lower than March prices. The WSJ’s Ryan Dezember writes the slide is stirring hopes that a significant source of inflationary pressure might be starting to ease. Much of the climb in prices was due to supply constraints following pandemic lockdowns, poor harvests and war in Europe. Some pressures are easing, although supply shocks are still jolting prices.

General Motors couldn’t deliver nearly 100,000 vehicles in the second quarter because it lacked computer chips and other parts. (WSJ)

Tesla’s vehicle deliveries tumbled nearly 18% from the first quarter to the second quarter. (WSJ)

Chinese automaker Geely bought smartphone manufacturer Meizu Technology. (WSJ)

China ordered nearly 300 jets from Airbus on behalf of three of its biggest airlines in the country’s first major aircraft purchase since the pandemic. (WSJ)

Pilots at Scandinavia’s SAS launched a strike that the airline said will hobble operations. (WSJ)

Russia took control of the international consortium behind the giant Sakhalin-2 oil-and-natural-gas project. (WSJ)

The U.S. allowed an oil tanker from a Russian port to unload its cargo in New Orleans, concluding that it hadn’t breached sanctions. (WSJ)

Alcoa shut down one of its three smelting lines at an Indiana plant because of operational challenges. (Dow Jones Newswires)

California trucking groups say the Supreme Court’s decision to allow new state restrictions on driver classification will take tens of thousands of truck drivers off the road. (Transport Dive)

Texas will add cross-border truck inspection checkpoints after dozens of migrants were found dead in a tractor-trailer. (Texas Tribune)

Furniture retailer La-Z-Boy has made “structural changes” across its supply chain to shorten lead times and clear a large backlog. (Supply Chain Dive)

A new logistics network for Russian oil shipments is developing using “dark ship-to-ship operations” at several transit points.(Lloyd’s List)

J.B. Hunt launched its own ocean container service between Asia and the Pacific Northwest using vessels chartered from Swire Shipping. (Maritime Executive)

The Port of Oakland cut the free time for containers waiting on docks from seven days to four days. (CNBC)

A record of more than 100 liquefied natural gas carriers were ordered in the first half of 2022. (TradeWinds)

CMA CGM is cutting freight rates for its French customers by 10% starting August 1. (Journal of Commerce)

Delta Air Lines will pay $10.5 million to settle charges that it falsified information about international mail delivery for the U.S. Postal Service. (Associated Press)

Volga Dnepr-owned AirBridgeCargo wants to return 14 Boeing 747 freighters to foreign leasing companies and has terminated dozens of European staffers. (Air Cargo News)

Three labor unions ratified contract agreements with Canadian Pacific Railway. (Progressive Railroading)

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

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