Note: The Logistics Report won't be published Tuesday in observance of Independence Day in the U.S. We'll be back Wednesday.

Disruption is back at West Coast ports, this time on the Canadian side of the border with the U.S. Over 7,000 dockworkers at the country’s Pacific Coast ports walked off their jobs over the weekend, the WSJ’s Paul Vieira reports, raising the stakes in contentious contract negotiations and sparking worries over supply chains in Canada and the U.S. Members of the International Longshore and Warehouse Union Canada staged the strike after failing to secure a new contract through negotiations that started in March. Officials say the ILWU talks with the employer group are continuing. Everstream Analytics says vessel traffic at Vancouver has been declining as the talks have grown more strained. Vancouver, Canada’s busiest container port, and Prince Rupert together handle about $270 billion in trade annually. Prince Rupert, to the north of Vancouver, is a significant gateway for Asia inbound shipments and has intermodal connections into Chicago.

• The Teamsters union suggested it was close to an agreement with United Parcel Service after reporting progress in contract negotiations. (Louisville Courier-Journal)
• Trucker Yellow is asking the White House to intervene to bring the Teamsters union back to the bargaining table in stalled contract talks. (Journal of Commerce)

A drought across America’s breadbasket is adding uncertainty and inflationary pressure to the country’s food supply chains. The dry spell has spanned the wheat fields of the Great Plains and the Corn Belt in the Upper Midwest, the WSJ’s David Uberti reports, leaving some areas with fractions of their normal rainfall heading into crucial growing periods for corn and soybeans. Crop prices were falling earlier this year before fears of drought-stunted yields and abandoned fields started driving up prices in early June for commodities including soybean oil and wheat. Global commodity markets are entering a new period of uncertainty, with the Ukraine-Russia export grain deal set to expire this month. The impact already appears to be hitting transport channels. Grain carloads hauled by U.S. railroads have been plummeting recently, including a 29% year-over-year decline in the week ending June 24, according to the Association of American Railroads.

• Argentina’s economy contracted 4.2% in April as one of the worst droughts in the country’s history pummeled agriculture exports. (Reuters)
• Japanese trading house Marubeni took a 25% stake in Norwegian commodities carrier Klaveness Dry Bulk. (Splash 247)

U.S. consumer spending rose 0.1% in May, as growing spending on services offset declining purchases of goods. (WSJ)

Consumer sentiment in the U.S. reached a four-month high in June. (MarketWatch)

China’s factory activity remained in contraction for a third straight month in June. (WSJ)

Oil traders are betting that crude prices will fall despite Saudi Arabia’s efforts to throttle output. (WSJ)

The Dutch government toughened restrictions on the export of some types of semiconductor manufacturing equipment. (WSJ)

Tesla’s global deliveries surged 83% to 466,000 vehicles in the June quarter. (WSJ)

United Airlines plans operational changes to avoid a repeat of the lengthy disruptions that snarled flights ahead of the busy Fourth of July holiday. (WSJ)

Constellation Brands’ beer sales increased 11% last quarter as its Modelo Especial brand became America’s top beer. (WSJ)

Fast-fashion retailer H&M cut its inventory 20% in the past quarter to the lowest level since the pandemic. (Bloomberg)

Hapag-Lloyd took delivery of the first of 12 ultra-large container ships with liquefied natural gas power capability. (Bunkerspot)

UPS is testing a “walking freight” program in London to replace vehicles with electronic trolleys. (Logistics Manager)

Freight forwarder DSV is preparing a service delivering packages to ships and wind turbines by drone. (ShippingWatch)

Japan Post may have to take a loss of about $550 million on its investment in e-commerce group Rakuten. (Nikkei Asia)

Gartner says the share of women filling executive-level supply chain roles rose to 26% last year from 19% the year before. (Modern Materials Handling)

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 Twitter at @WSJLogistics.