A shortfall in diesel supplies has gone global and is fueling inflation and crimping transportation. U.S. diesel prices are outstripping the gains in the benchmark price for crude as well as the cost of gasoline. The WSJ’s Joe Wallace reports that the diesel crunch is another result of the rapid stop-start trajectory of Western economies during the pandemic, with refineries now struggling to crank up production after several shut down when demand tanked in 2020. The problem is more acute with diesel because diesel and jet fuel are produced from the same slice of the crude barrel. When refiners ramped up jet fuel output to meet airline demand last year, diesel production sputtered and supplies fell. Global stockpiles of refined oil products including diesel have fallen to precariously low levels, even as profit margins for refiners have ballooned as traders try to encourage the industry to ratchet up production.

Fractured global food supply chains are triggering soaring prices and shortages of key staples and growing protests across the developing world. The war in Ukraine and disruptions in exports from Russia and Ukraine are adding to strains on global supplies of grains and other food stuffs, but that is only part of the picture. The WSJ’s Alistair MacDonald, Nicholas Bariyo and Philip Wen write that authorities are warning that Ukraine’s blocked seaports must reopen before the harvesting season, which begins in earnest in mid-June, to prevent shortages next year. Poor weather patterns in crucial producing countries are adding to the disruption. India, the world’s second-largest wheat grower, just banned wheat exports to help tame a surge in domestic prices after a searing heat wave pummeled crop yields. Indonesia recently halted the export of certain types of palm oil in an effort to lower soaring prices of cooking oil at home.

• India is banning wheat exports as it stresses the country’s “food security.” (WSJ)

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

Ukrainian forces began a counteroffensive toward the eastern city of Izyum, attempting to disrupt Russian supply lines into Donbas, while continuing to clear villages north of Kharkiv. (WSJ)

Russia halted the export of electricity to Finland after that country’s leaders said they supported an application for NATO membership. (WSJ)

Russia’s annual inflation rate accelerated to 17.8% in April. (WSJ)

Antonov Airlines plans to move its operations to Germany’s Leipzig airport after the freight airline’s base outside Kyiv was destroyed. (Air Cargo News)

India’s imports of Russian commodities including crude have increased dramatically since Russia invaded Ukraine. (Splash 247)

For the latest updates from Russia and Ukraine, click here

A new trade strategy is taking shape with a goal of resetting global manufacturing in response to geopolitical upheaval. The U.S. and its allies are pursuing a refined concept of globalization that seeks to confine a swath of international commerce to a circle of trusted nations, and the WSJ’s Yuka Hayashi writes that fans call the shift “friend-shoring.” It’s a sharp turn from the decadeslong drive toward offshoring and free-trade policies that made moving goods around the world cheaper and faster. Many countries are now supporting new production and trading channels for essential goods that run though friendly nations, and companies including Samsung Electronics and Gap are tapping into the trend. Supporters see the concept as a chance to reduce the reliance of global supply chains on countries with autocratic governments and nonmarket economies. That may have important implications for shipping companies with business built on free trade.

Activist investor HG Vora Capital Management is offering to acquire fleet-management and supply-chain operator Ryder System in a $4.4 billion deal. (WSJ)

A measure of U.S. consumer sentiment fell to a 10-year low. (MarketWatch)

A shortage of baby formula in the U.S. is leading desperate parents to drive hours in search of supplies while manufacturers say they are working to increase production. (WSJ)

Shanghai officials plan to begin a phased reopening of the city’s businesses starting today. (WSI)

The Cass Freight Index for domestic U.S. shipments slipped 0.5% in April from last year even as expenditures rose 30.6%. (Dow Jones Newswires)

United Airlines reached a tentative contract agreement with the union representing its pilots. (WSJ)

Ford sold another 7 million shares from its stake in electric-vehicle startup Rivian Automotive. (WSJ)

The world’s largest carmakers are warning that supply-chain disruptions and higher raw material prices threaten the rollout of electric vehicles. (Financial Times)

China’s electric-vehicle battery makers are being hit hard by rising raw materials costs. (Caixin Global)

Top Chinese chipmaker SMIC says demand for mobile phones, personal computers and home appliances has dropped “like a rock.” (Nikkei Asia)

First-quarter profit at South Korean shipping line HMM rose nearly 20-fold to about $2.4 billion on revenue of $3.8 billion. (Korea JoongAng Daily)

Container lines say sliding freight rates could cut into their earnings this year. (The Loadstar)

Orders for new container ships now are equivalent to nearly 30% of the capacity of the existing fleet. (Lloyd’s List)

CMA CGM will start offering payments to shippers that return empty containers more quickly. (DC Velocity)

Truckload carrier U.S. Xpress laid off about 70 workers at its Chattanooga, Tenn., headquarters after reporting an $8.9 million first-quarter loss. (Chattanooga Times Free Press)

Electronic components maker Avnet is building a factory in Eschbach, Germany, and a 600,000-square-foot distribution center in Bernburg, Germany. (Modern Distribution Management)

Road freight costs in the greater London area have risen to twice the level of the rest of the U.K. (Motor Transport)

European regional logistics operator DFDS’s April freight volumes were up 5.4% from last year. (Logistics Manager)

Nearly half of companies responding in a survey say they have no plans to add robotics to their warehousing operations. (Modern Materials Handling)

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.