Canada is facing new labor uncertainty in its supply chains. Members of Teamsters Canada approved strikes at the country’s two big railroads that could begin as soon as May 22. The WSJ’s Paul Vieira reports that walkouts by more than 9,000 workers at Canadian National Railway and Canadian Pacific Kansas City would trigger extensive disruptions across North American logistics networks, including a heavy impact on the carriers’ big intermodal and commodity operations. Reverberations would likely extend across the continent and have a bigger impact than last year’s walkout by British Columbia dockworkers. Both railroads operate about 20,000 miles of track throughout Canada, the U.S. and Mexico. CPKC said company and union representatives intend to meet this week, with the help of federal labor conciliators. Pascal Chan of the Canadian Chamber of Commerce says the country simply doesn’t have “the capacity to replace the movement of goods by rail.”

• U.S. rail regulators adopted new rules allowing shippers to petition for so-called reciprocal switching. (Progressive Railroading)

Boeing’s supply-chain woes are starting to trigger competition in aircraft manufacturing. Brazilian plane maker Embraer is expressing interest in developing a next-generation narrow-body jet that would compete head-on with the successors to Boeing’s 737 MAX and Airbus’s A320. The WSJ’s Andrew Tangel and Benjamin Katz report that Embraer’s internal assessments have determined that the company has the technological know-how and manufacturing might to enter the market with a project that could represent a make-or-break strategy for the business. The narrow-body passenger market is a key aircraft category, and new aircraft programs typically cost tens of billions of dollars to develop and require long lead times to prepare supply chains. Embraer’s ambitions have firmed in recent months with Boeing in turmoil after the latest incident in which a 737 MAX lost a fuselage panel. Boeing doesn’t have a firm plan for how it will replace its decades-old 737 line.

• Global air cargo traffic rose at a double-digit pace in March for the fourth straight month, according to the International Air Transport Association. (Air Cargo Next)

A measure of U.S. factory activity fell back into contraction in April as indicators of new orders and order backlogs shrank. (MarketWatch)

The number of job openings in the U.S. fell to the lowest level in more than three years. (WSJ)

South Korea’s export growth accelerated in April on brisk demand for semiconductors, smartphones and cars. (WSJ)

The U.S. says China is moving forced laborers from the Xinjiang region to other parts of the country in growing numbers. (WSJ)

BYD and other Chinese electric-vehicle makers posted higher sales and deliveries in April. (WSJ)

Sales at European carmakers lagged at the start of the year behind the costs of new-model launches. (WSJ)

Kraft Heinz quarterly sales volumes fell 3.2 percentage points as demand softened in the face of higher prices. (WSJ)

A massive tornado in Oklahoma destroyed a 1-million-square-foot Dollar Tree distribution center, flinging tractor-trailers and goods across the area. (Sourcing Journal)

Walmart opened a 490,000-square-foot consolidation center near Chicago, its third such site for handling less-than-truckload volumes. (Supply Chain Xchange)

TFI International cut corporate salaries at its newly acquired Daseke business by at least $12 million, calling the flatbed trucker’s head office a “cancer.” (Supply Chain Dive)

A.P. Moller-Maersk raised its profit and demand outlook after reporting stronger-than-expected first quarter earnings. (Reuters)

Major container lines are starting to accept charter deals at higher rates and for longer periods. (TradeWinds)

Russia’s state-owned Sovcomflot is renaming tankers that have been sanctioned by the U.S. (ShippingWatch)

Cosco Shipping’s revenue from container operations rose 1.8% to about $6.4 billion in the first quarter on an 11% jump in volumes. (ShippingWatch)

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.