China’s broad effort to expand production in its industrial sector is taking a financial toll on the country’s factory owners and materials suppliers. Rampant overcapacity combined with weak domestic consumer demand is pushing many Chinese companies to the brink, forcing them to slash prices and crushing profits. The WSJ’s Jason Douglas and Rebecca Feng report that the impact is the flip side of Beijing’s investment in production that has Western companies quaking at the new onslaught of cheap Chinese goods. Manufacturers like Jiangsu Lopal Tech and Longi Green Energy Technology are struggling as China boosts industrial capacity without stimulating new demand. So-called factory-gate prices have been in free fall for almost two years as a result. Much of China’s investment is aimed at “emerging and future industries,” such as electric vehicles and solar. But financial pressures go beyond those to machinery, electronics and software.

Boeing is offering a stark and expensive example of how supply-chain shortfalls can trigger cascading problems across a company’s operations. Parts shortages and other issues have left the jet maker facing a major storage issue, with about 200 fully or mostly finished airplanes sitting in airfields, outside plants and—in one location—an employee parking lot. The WSJ’s Sharon Terlep reports that supplier shortages have saddled the company with planes short of parts such as seats and emergency doors. But a handful of 777 freighters in Everett, Wash., are awaiting engines because manufacturer GE Aerospace has struggled with shortfalls from its own suppliers. Boeing had delivered only two freighters this year through May. But the engines have started rolling in, and Boeing delivered five of the planes in June. The bigger problem is with passenger jets including some single-aisle 737 MAXs that are now several years old.

• Flight cancellations and other disruptions in airline operations persisted through the weekend after the tech meltdown driven by a disastrous Microsoft update. (WSJ) 
• Japan’s Mitsubishi Heavy Industries will supply Airbus with parts for small passenger airplanes and manufacture them in Vietnam. (Nikkei Asia)

President Biden withdrew from his campaign for a second term and endorsed Vice President Kamala Harris after failing to quell aDemocratic rebellion against his candidacy. (WSJ)

The index of leading U.S. economic indicators fell in June for the fourth month in a row. (MarketWatch)

Retail sales in the U.K. dropped 1.2% from May to June. (WSJ)

Canada’s retail sales fell 0.8% in May and were on track to decline again in June. (WSJ)

Australia's Woodside Energy plans to acquire Tellurian and its proposed southern U.S. liquefied natural gas development for about $900 million. (WSJ)

Two large tankers collided near Singapore, setting the vessels ablaze and triggering rescue operations for crewmembers. (Reuters)

Malaysian authorities intercepted the Ceres 1 tanker after the vessel apparently left the scene of the collision and fire off Singapore. (S&P Global)

India’s coast guard was fighting a large fire that broke out on a new Maersk-chartered containership that caught fire in the Arabian Sea. (Splash 247)

Spot rates for very large crude carriers have slumped to about $20,000 a day. (Lloyd’s List)

The Suez Canal Authority’s revenue fell by about $2.2 billion and vessel transits plummeted 22% on the impact of Houthi attacks on commercial shipping. (Maritime Executive)

Vessel and container backups at Asian gateways have reached Taiwan’s Port of Kaohsiung. (The Loadstar)

California’s Port of Long Beach broke ground on a railyard expansion aimed at tripling cargo handling capacity. (Long Beach Post)

Saudi Arabia’s Bahri dropped out of the bidding for German freight forwarder DB Schenker, narrowing the field to DSV and a consortium led by CVC Capital Partners. (Trans.Info)

Tight availability of specialized vessels and other supply chain disruptions are hindering the U.K.’s efforts to expand its offshore wind power industry. (Financial Times)

A growing number of truck drivers in Canada say that companies are refusing to pay them. (CBC)

Royal Mail launched a trial of drone delivery on remote Scottish islands. (Logistics Manager)

Packaged-food suppliers are evaluating cocoa-free alternatives for chocolate candies amid high prices for raw materials. (Bloomberg)

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.