Hints of potential peace in the Middle East are taking a toll on the shipping sector. Shares in shipping and logistics providers that had surged as freight rates rose came under heavy selling pressure on news of a possible cease-fire between Israel and Hamas. The WSJ’s Dominic Chopping writes that investors are eyeing the possibility that containerships could return to the Red Sea, ending the lengthy route diversions that have effectively constrained capacity in the sector and driven up freight rates. The sharp movements in trading in carriers including A.P. Moller-Maersk, Hapag-Lloyd and Cosco Shipping illustrate the impact the diversions have had on the market since Houthi rebels in Yemen began attacking commercial vessels last year. The Shanghai Containerized Freight Index for rates out of China skyrocketed 82% from early April to June 7, and several carriers have boosted their earnings outlooks from earlier downbeat projections.

• The Global Port Tracker projects U.S. container imports will reach their highest level in two years this summer. (Logistics Management)
• The main channel to the Port of Baltimore fully reopened, nearly 11 weeks after a cargo ship lost power and slammed into the Francis Scott Key Bridge. (WSJ)

A shadow fleet of aging tankers carrying sanctioned oil is increasingly relying on a series of small countries to register their vessels under obscure flags. The move toward “flag states” such as Gabon, Comoros and Cameroon is aimed at sidestepping a system that has long helped keep the oceans safe, by ensuring ships are properly insured and seaworthy, and that sailors are well treated. The WSJ’s Costas Paris and Joe Wallace report that the Gabonese ship registry has ballooned to hold more than 100 tankers, according to ship brokers and owners. Lloyd’s List Intelligence estimates more than 70 of those vessels have obscure ownership and form part of a shadow fleet of tankers dedicated to sanctioned oil trades. Experts say the ships are beyond oversight, presenting hazards on the water. Last year, a Gabon-flagged tanker burst into flames off Malaysia, and authorities still haven’t determined who owned the ship.

• The first Russian oil tanker attempting to deliver crude while under U.S. sanctions made a clandestine cargo transfer near Singapore. (Bloomberg)

Building a makeshift maritime port turns out to be tougher than it sounds. The $230 million pier that the U.S. military installed off Gaza has had trouble meeting its mission. The WSJ’s Nancy A. Youssef reports the floating structure broke apart late last month after just 10 days of operation, and some humanitarian organizations have all but given up making longer-term plans around the pier. The plan has faltered in the face of the Mediterranean’s rough waters and the difficult logistics of bringing humanitarian aid through an uncertain gateway with only limited reach to the inland points it was meant to serve. Those involved in the shipping industry in Cyprus described the pier’s suspension as inevitable. After a week of repairs, the pier went back in place Saturday, only to be shut down again Sunday because of the rough waters, the Pentagon said. It reopened Tuesday.

Canada and its unionized border agents reached a tentative contract agreement that averts job actions set to start this Friday. (WSJ)

Boeing booked only four new orders for aircraft in May. (MarketWatch)

Italian prosecutors are investigating the supply chains of around a dozen fashion brands after a unit of France's LVMH was placed under court administration in a worker exploitation probe. (Reuters)

The U.S. has flagged nearly 700 foreign suppliers suspected of sending controlled goods to Russia. (Export Compliance Daily)

The Panama Canal is adding two transit slots in July as drought conditions at the waterway ease. (Seatrade Maritime)

Maritime intelligence firm eeSea says shipping lines have started canceling sailings into Canada in anticipation of a potential railroad strike. (The Loadstar)

United Arab Emirates-based Magellan Group acquired a controlling stake in Danish Ship Finance. (Maritime Executive)

Supply chain software supplier Descartes Systems bought British shipment management company BoxTop for $13 million. (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.