Two years into a nearly $53 billion government effort to shore up the U.S. chip industry, the challenges in shifting global semiconductor supply chains are becoming clearer. The headwinds to the Chips Act include fast-growing chip industries in competing countries, political complexity regarding funding allocations at home and the sheer expense of manufacturing chips. The WSJ’s Asia Fitch reports the lion’s share of the allotments have been slated for Intel and other large chip makers, while other companies crucial to the chip-making supply chain have missed out. The gap underscores the crucial role that broad ecosystems of suppliers play in semiconductor manufacturing and the distance the U.S. still faces in building full supply chains. A Boston Consulting Group study projects the number of chips made in the U.S. will triple by 2032. That would only expand the U.S. share of global output to 14% from 12% in 2020.

• South Korea’s exports expanded 11.7% in May, including a 55% jump in semiconductor shipments. (WSJ)
• STMicroelectronics is building a $5.4 billion chip-manufacturing plant in Catania, Italy. (WSJ)

A new agreement between OPEC and its allies to extend curbs on crude production may keep oil prices elevated but shouldn’t dampen bullish prospects in the tanker market. The group agreed to maintain through next year collective curbs that include official reductions of 3.66 million barrels a day. The WSJ’s Summer Said and Benoit Faucon report the agreement also gives the cartel considerable leeway to make adjustments depending on market conditions. Right now, futures trading positions for a key U.S. benchmark suggest broad belief that oil prices will slip from current levels. Average diesel prices across the U.S. have been slipping, and at $3.758 per gallon last week reached their lowest point since January 2022. Bimco projects oil tanker capacity will grow only 0.5% this year, as demand continues to outpace supply. The shipping analyst group expects the imbalance will push rates for crude carriers higher this year.

Activity in China’s factory sector contracted unexpectedly in May. (WSJ)

Canada’s economy grew in the first quarter at the fastest pace in a year. (WSJ)

India’s economic growth accelerated to 8.2% in the fiscal year ending March 31. (WSJ)

Boeing crafted performance goals that federal regulators will use to assess the jet maker’s efforts to improve quality. (WSJ)

A bankruptcy judge rejected a law firm’s application to represent wood-pellet maker Enviva while it also works for its largest shareholder. (WSJ)

The Panama Canal increased the allowed vessel draft ahead of schedule as an early rainy season improves conditions. (Splash 247)

A backup of more than 20 containerships has grown off South Carolina’s Port of Charleston and Georgia’s Port of Savannah amid construction at Charleston. (Journal of Commerce)

Hapag-Lloyd resumed seaborne container service to Ukraine through a third-party feeder line. (DPA International)

Delaware plans to spend $635 million to expand the Port of Wilmington to handle large containerships. (WHYY)

Exports by Chinese EV market leader BYD were up 177% in the first five months of the year over last year. (Barron’s)

U.S. customs has started checking every item on freighter flights from China carrying e-commerce shipments. (The Loadstar)

Walmart is expanding its in-home delivery service to major U.S. cities. (Arkansas Democrat Gazette)

Federal regulators gave Amazon a key permission to expand its drone delivery program. (Associated Press)

New York-based retail e-commerce fulfillment provider Ship Essential opened its first West Coast warehouse in downtown Los Angeles. (Business Journals)

Norfolk Southern’s interchange carload volume with short lines is up 9% since March 1 under a program to improve connections. (Trains)

Airbus faces hurdles in its planned jet production ramp-up amid ongoing parts and labor shortages. (Reuters)

A study shows more companies are making cost concerns a greater priority as they build resilient supply chains. (DC Velocity)

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.