Commercial ships in the Red Sea region are facing a new danger even as the impact of disruptions to shipping in the area deepens across the maritime sector. An attack on a Greek-owned bulk ship using a remote-controlled sea drone appeared to be the first time Yemen’s Houthi rebels have successfully deployed such a device. The WSJ’s Benoit Faucon reports the attack marks a way for the Iran-backed group to evade U.S.-led efforts to thwart the missiles and aerial drones the rebels have been using to attack vessels. The crew of the coal-carrying Tutor was forced to abandon the ship and evacuated. The crew of a Ukrainian-owned vessel also abandoned ship Saturday after it was struck by Houthi missiles. British security firm Ambrey wrote the potential loss of two vessels within a few days marks “a significant increase in effectiveness” for the Houthis, suggesting no end in sight for the disruptions to global trade flows.

California is awash in water after record-breaking rains vanquished years of crippling drought, but there’s little evidence of that on the state’s farms. Many farmers in Central Valley, America’s fruit and vegetable basket and an important source of agricultural exports, will get just 40% of the federal water they are supposed to this year, illustrating how broken California’s vast water-delivery system is. The WSJ’s Jim Carlton reports that U.S. and state regulators are curtailing water to farmers to protect endangered fish, the migrating smelt and steelhead, leading growers in the U.S.’s richest farming area to plant fewer crops even as they are surrounded by water. The regulatory decision has ignited an uproar and threatens to upend this region just as it was recovering. The area is a top U.S. producer of almonds, pistachios, tomatoes and more, and the state’s exports of almonds alone amounted to $4.5 billion in 2022.

The cost of U.S. imported goods fell in May by the largest amount since the end of last year. (MarketWatch)

A measure of U.S. consumer confidence fell this month to its lowest level since last November. (WSJ)

Jeep maker Stellantis is shifting electric-vehicle production away from China due to upcoming European Union tariffs. (WSJ)

U.K. grocer Tesco’s same-store sales rose 3.4% in the quarter ending May 25. (WSJ)

U.S. regulators are investigating how titanium with counterfeit certification got into parts that went into Boeing and Airbus jets. (New York Times)

Malaysia will build a container port along its western coast aimed at capturing logistics demand triggered by global supply chain shifts. (Nikkei Asia)

Candy manufacturing in Canada is growing as producers look to avoid U.S. sugar tariffs. (Bloomberg)

Russia's seaborne exports of oil products jumped 10.4% from April to May. (Reuters)

The CEO of heavy-duty shipping company Red Box Energy stepped down after the U.S. cited the company for breaching sanctions on Russia. (Financial Times)

A Georgia jury awarded $47 million to the family of a man killed in an accident they said involved a Schneider National tractor-trailer. (Law.com)

Unilogic is suing freight forwarder Flexport over the alleged failure to pay the warehouse services provider​ more than $1 million. (Sourcing Journal)

Industrial parts distributor MSC slashed its outlook after sales tumbled in the past quarter. (Industrial Distribution)

Warehouse robotics supplier AutoStore is doubling its production capacity with a new factory in Thailand. (DC Velocity)

McDonald’s is promoting Cesar Piña to chief supply chain officer for North America on the retirement of Bob Stewart this fall. (Supply Chain Dive)

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.