The importing pendulum is swinging back toward Southern California. Imports are rising at the ports of Los Angeles and Long Beach as they fall at East Coast and Gulf Coast gateways. The WSJ Logistics Report writes that retailers soured on the West Coast in recent years because of pandemic-driven backups, labor disruptions and broad shifts in global sourcing. Now, shippers are returning to Southern California after employers clinched a multiyear labor deal with unionized dockworkers. The shift is accelerating as Houthi attacks on ships approaching the Suez Canal and a drought at the Panama Canal limit access to waterways that serve the U.S. East Coast. Southern California ports today are handling about 36% of U.S. containerized imports, up from 33% last year. Port of Los Angeles chief Gene Seroka says the ports “are going to be as aggressive as ever” in chasing more market share.

Subcontractors are emerging as the weakest link in Boeing’s supply chain. The WSJ’s Sharon Terlep and Andrew Tangel report that a Boeing engineer warned at an internal symposium in 2001 that entrusting other companies with the production of parts was a big risk, but the company plowed ahead regardless. The strategy is being questioned in the wake of a string of quality problems that include complaints of loose rudder bolts and a recent blowout of a door plug on an Alaska Airlines flight. Dozens of factories build key pieces of 737 and 787 jets before they are assembled by Boeing. The system has slashed costs by letting production lines maximize output and eliminate waste. But, as the Boeing engineer pointed out, it adds risks because the final product is only as good as "the least proficient of the suppliers.”

• Boeing’s long-awaited delivery resumption of its 737 MAX jets to China faces fresh delays after the Alaska Airlines incident. (WSJ)

• U.S. federal air-safety regulators are ramping up inspections of Boeing’s manufacturing facilities. (WSJ)
   

China’s exports rose 2.3% in December while direct shipments to the U.S. for the full year fell for the first time since 2019. (WSJ)

Germany’s economy likely shrank by 0.3% in the three months through December. (WSJ)

BlackRock is buying private-equity firm Global Infrastructure Partners for roughly $12.5 billion. (WSJ)

Houthi rebels stepped up attacks on ships in the Red Sea, striking a U.S. Eagle Bulk Shipping carrier with a missile off the coast of Yemen. (WSJ)

The U.S. slapped sanctions on four tankers and two companies for shipping Iranian commodities on behalf of a Houthi “financial facilitator.” (Lloyd’s List)

Ocean carriers have suspended offering long-term agreements in the Asia-Europe market because of the impact of the Red Sea shipping disruption. (Journal of Commerce)

Euronav plans to order 120 low-carbon tankers, bulk carriers and containerships as it seeks to combine with clean shipping group CMB.Tech. (TradeWinds)

QatarEnergy is ordering eight ultra-large liquefied natural gas carriers from China’s Hudong-Zhonghua shipyard. (Maritime Executive)

APM Terminals is working with developers to build a $500 million container terminal south of the Port of New Orleans. (gCaptain)

Major railroads and unions are already preparing for negotiations on a new labor contract. (Trains)

MSC Air Cargo took its fourth 777 freighter under an agreement with Atlas Air. (Air Cargo News)

A North Carolina small trucker who won a $1 million lottery says he will use the money to buy more trucks. (WRAL)

Visual Comfort is seeking $2 million in compensation for alleged improper charges by Cosco Shipping under a complaint with U.S. regulators. An item in Friday’s newsletter listed an incorrect figure cited by another publication.

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.