China is building a megaport in a serene town on Peru’s Pacific coast that could challenge U.S. influence in a resource-rich region that Washington has long considered its backyard. The Chancay deep-water port is majority-owned by China’s state-owned Cosco Shipping Group. The WSJ’s Ryan Dubé and James T. Areddy report that the site promises to speed seaborne trade between Asia and South America, benefiting exporters as far away as Brazil with shorter trans-Pacific sailing times. The $3.5 billion port will be the first on South America’s Pacific coast able to receive mega containerships, allowing companies to send cargo on those vessels directly between Peru and China. The U.S. worries that China’s control over what could become South America’s first true global commercial hub will allow Beijing to strengthen its grip over the region’s resources, deepen its influence among America’s closest neighbors and eventually plant its military nearby.

• China’s export pivot to developing countries faces challenges in an increasingly protectionist world. (WSJ)
• Southeast Asian countries' exports to the U.S. in the January-March period surpassed those to China for the first time in six quarters. (Nikkei Asia)

Chinese electric-vehicle makers have been building new supply chains and distribution as they brace for the prospect of hefty tariffs in Europe. The new levies will arrive in July in a business that has changed dramatically as China’s automotive manufacturers have become a global force. The WSJ’s Selina Cheng reports that some have already started building factories on the continent, while others have set up joint ventures there to maintain access to one of their most promising markets. Still others are looking at exporting to Europe from third countries, such as Thailand, while some are turning away from Europe altogether, rethinking their road map to growth and turning to markets where they have a better shot at displacing incumbents. Still, analysts say the tariffs are likely to only temporarily slow Chinese EV sales in Europe and won’t derail their longer-term trajectory, especially in countries without local players to protect.

• Ford is making electric vehicles more widely available across the U.S. by expanding sales and service of EVs to all its dealerships. (WSJ)
• Stellantis will shift the focus of its capital spending strategy to efficient investments and shareholder returns. (WSJ)

Wholesale prices across the U.S. fell in May for the second time in three months. (WSJ)

U.K. retailer DFS Furniture slashed its profit outlook after Red Sea disruptions delayed order deliveries and increased shipping costs. (Dow Jones Newswires)

Former President Donald Trump floated the idea to Republican lawmakers of an all-tariff revenue system to replace the federal income tax. (WSJ)

Ghana, the world’s second largest cocoa producers, plans to delay delivery of 350,000 tons to processors because of poor crops. (Reuters)

The U.S. added to its blacklist seven liquefied natural gas carriers being built or just launched by Russia’s Sovcomflot. (TradeWinds)

The UK imposed sanctions on Russian insurer Ingosstrakh, a key player supporting the Kremlin’s “shadow fleet” of oil tankers. (Financial Times)

A seafarer on a Greek-owned bulk carrier was killed in this week’s Houthi attack on the ship. (ekathimerini)

Workers at the German ports of Bremerhaven and Bremen joined cargo handlers at Hamburg in a series of rolling one-day strikes. (Journal of Commerce)

Tupperware is closing its only U.S. manufacturing plant and laying off 148 workers. (Modern Retail)

Tern AI raised $4.4 million in a seed funding round backing its technology offering a logistics-sector alternative to GPS signals for vehicles. (TechCrunch)

Indian supply chain software startup CargoSense raised $8 million in a Series A funding round. (India Times)

• Companies such as IKEA are mapping chemicals in wood to understand their suppliers and keep illegal timber shipments out.
• A court ruling against new private-fund securities rules ignores how much individuals invest in these funds. (🔒)
• Mars Wrigley has a new gum strategy it wants you to chew on.
• 🎧 Listen to Target’s supply-chain chief describe how the retailer coped with a steep overstocking problem even as it brought its fulfillment strategy into its stores.

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.