The U.S. Defense Department is joining the drive toward reshoring, and it’s deploying automation to improve production efficiency. A factory in Mesquite, Texas, that produced shells is at the center of the extensive, expensive effort to bring home the production of materials critical to national security. The WSJ’s Doug Cameron reports the Pentagon is spending $6 billion to revamp older plants with modern equipment and expand output at new facilities that can churn out munitions faster. It’s part of a long-range strategy to prop up a defense-industrial ecosystem that could have a broader impact on private industry. Military strategies and tools have long seeped into the commercial logistics sphere. The push to quickly expand domestic manufacturing will rely heavily on foreign countries, including Japan, Germany and Turkey. Industry executives say defense supply chains that took decades to develop outside the U.S. could take as long to replicate domestically.

• Southeast Asia is emerging as a top choice for firms looking to diversify production away from China, including Chinese companies seeking to minimize their risk. (CNBC)

Competition in the American trucking market looks like it’s turning into a game of attrition. Niche operator US Logistics Solutions is the latest carrier to succumb to a business light on goods volume and weak on financial returns. The WSJ Logistics Report’s Paul Berger writes the Texas-based company filed for chapter 7 liquidation and quickly shut down, eliminating about 2,000 jobs and more than 500 trucks from the freight market. The closure follows the shutdown this spring of truckload carrier Arnold Transportation, and marks one of the biggest failures in trucking since Yellow collapsed last year. US Logistics operated in a narrow business called pool distribution, running trucks for retailers between distribution centers, its own network of warehouses and stores. That left the former unit of expedited trucker Forward Air exposed to a lackluster consumer market that’s taken a growing toll on retailers and merchants’ service providers.

• The body regulating how less-than-truckload shipments are classified for pricing plans significant changes in the first three months of 2025. (Logistics Management)

The European Union slapped its first sanctions on Russia targeting the Kremlin’s liquefied natural gas shipments. (WSJ)

Airbus says it won’t meet its targets for commercial aircraft deliveries this year. (WSJ)

Danish drug maker Novo Nordisk will spend $4.1 billion to build a second fill and finishing factory in Clayton, N.C. (WSJ)

China-founded online apparel giant Shein filed confidentially for an initial public offering in London. (WSJ)

At least 22 people were killed in a fire at a lithium-battery factory in South Korea. (WSJ)

Nissan closed a factory in Changzhou, China, that the automaker had opened less than four years ago. (Nikkei Asia)

South Korea’s automotive exports to North America jumped 36.3% in May from the same month last year. (Korea Herald)

Private-equity firm EQT will acquire European refrigerated storage specialist Constellation Cold Logistics. (Dow Jones Newswires)

The Dali containership left the Port of Baltimore for Norfolk, Va., three months after the vessel collapsed the Francis Scott Key Bridge. (Baltimore Sun)

Transshipment container volume at Spain’s Valencia port jumped 13.1% in May. (Port Technology)

Loaded container imports into the Port of Houston rose 18% in May. (DC Velocity)

Germany’s Hamburg Commercial Bank acquired the shipping loan portfolio of Dutch competitor NIBC. (ShippingWatch)

GXO will start using humanoid robots from Apptronik at some of its warehouses. (Logistics Manager)

Target opened a fourth “flow” distribution center aimed at more rapid replenishment of store inventories. (Supply Chain Dive)

United Parcel Service hasn't started buying air-conditioned package vans that it promised to add under an agreement with the Teamsters union. (CNN)

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.