The Covid-19 impact on high-value, Asia-based electronics supply chains is deepening. Apple supplier Pegatron suspended operations at a factory outside the Taiwanese capital of Taipei, adding to concerns over outbreaks that have locked down critical business in China. The WSJ’s Joyu Wang and Jonathan Cheng report that the shutdown followed the discovery of 694 Covid cases at the Taoyuan plant, and after Pegatron had already halted production in Shanghai and nearby Kunshan in eastern China. Apple supplier Foxconn has also suspended production at two of its sites in the Kunshan area, the South China Morning Post reported. The outbreak in Taiwan may raise alarms in supply chains, but authorities there have been less strict with lockdowns than Beijing. In Shanghai, container ships are skipping China's busiest port as Covid-related lockdowns have slashed the movement of cargo and shipping lines are saying they won't handle perishable cargo bound for the city.

A duty exemption long claimed by tourists bringing in souvenirs is playing a bigger role in U.S. trade. Companies are using the decades-old provision known as the de minimis rule to avoid billions of dollars in tariffs, the WSJ’s Josh Zumbrun reports, and the trend has been growing as e-commerce has pushed more small shipments that fall under the exemption across borders. Customs data shows more than a tenth of Chinese imports by value now arrive as de minimis shipments, up from well under 1% a decade ago. Companies that sell directly to U.S. consumers can avoid the tariffs as long as goods are packaged and addressed to individual buyers and fall below the $800 cap. Some have shifted their supply chains to get the exemption by shipping goods to bonded warehouses in Mexico before sending them back across the border in individual packages once consumers place online orders.

Nestlé is demonstrating how multinational firms operating in Ukraine can maintain production and distribution while focusing on worker welfare. The Swiss multinational joins a growing list of firms that includes German auto supplier Leoni providing bomb shelters and tailoring production schedules amid supply-chain shortages and the threat of rocket attacks. The WSJ’s Saabira Chaudhuri writes that the maker of Nescafe coffee and KitKat chocolate reopened two factories in western Ukraine within days of Russia’s Feb. 24 invasion, turning underground rooms into bomb shelters and adjusting production lines to allow for frequent interruptions. A factory in heavily-bombed Kharkiv remains closed but workers have been retrieving boxes for local deliveries. Western food companies are becoming increasingly important for Ukraine’s survival amid Russia’s attacks. Nestlé is sourcing some crucial ingredients from nearby countries because of shortages in Ukraine while delivering aid such as baby food from other European factories.

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

Biden administration officials say the U.S. aims to degrade Russia’s military capabilities and strengthen Ukraine’s to prevent Moscow from attempting to conquer territory by force in the future. (WSJ)

Finnish paper and forestry company Stora Enso will divest its two sawmills and forest operations in Russia to local management. (WSJ)

The Big Four accounting firms continue to work in Russia more than a month after announcing they were exiting the country. (WSJ)

For the latest updates from Russia and Ukraine, click here

Fertilizer prices have reached record highs, with far-reaching consequences for farmers, agricultural yields and food prices. In a video report, the WSJ’s Patrick Thomas explains the reasons behind the surge and what it could mean for consumer wallets.

Australian freight forwarder Toll Holdings will pay $6.1 million to settle U.S. charges that it violated sanctions involving several nations. (WSJ)

Business confidence in Germany improved slightly this month from a low level. (MarketWatch)

The Renewable Fuels Association says some ethanol suppliers have cut production because of the lack of rail cars for transport. (Dow Jones Newswires)

Whirlpool cut its sales outlook and said U.S. consumers’ demand for appliances. (WSJ)

Coca-Cola’s quarterly sales rose 8% and the drinks maker offset a 17% increase in cost of goods with price increases and other actions. (WSJ)

Indonesia is banning the export of palm oil in a bid to contain surging food prices. (Financial Times)

The head of Japanese robot maker Yaskawa Electric says the race to secure chipmaking components has created a supply chain "imbalance" likely to prolong the semiconductor shortage. (Nikkei Asia)

A.P. Moller-Maersk raised its annual earnings outlook 25% after strong first-quarter results and said container volumes should stabilize in the second half of the year. (Splash 247)

Spot rates in bulk shipping’s biggest capesize vessels are rising sharply. (Lloyd’s List)

Goods throughput at the Port of Rotterdam fell 1.5% in the first quarter on the impact of Russia’s invasion of Ukraine. (Reuters)

Container volumes at Belgium’s Port of Antwerp fell 11.6% in the first quarter. (Port Technology)

Alaska Airlines pilots will vote next month on whether to authorize a strike. (Air Cargo News)

Freight costs at fabric and crafts retailer Jo-Ann Stores more than tripled in the fourth quarter from the third quarter, to $35.3 million. (Supply Chain Dive)

Dutch medical-equipment supplier Royal Philips warned of continuing supply-chain challenges after swinging to a first-quarter loss. (Bloomberg)

Industrial materials supplier Avient will consider selling its distribution business as part of an agreement to buy Royal DSM’s materials segment. (Industrial Distribution)

• Join us at the WSJ Risk & Compliance Forum on May 10 for a discussion on weak points in the supply chain, with Meagan Fitzsimmons, chief compliance and ESG officer with GXO Logistics. Click here to register for a free ticket using the code wsj100.

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.