Havens from global shipping congestion are disappearing. A backup of container ships waiting outside the Port of New York and New Jersey is up to about 14 vessels a day, the WSJ Logistics Report’s Paul Berger writes, adding to the bottlenecks that have delayed U.S. imports and hobbled businesses as they try to recover from the pandemic. The backup isn’t as large as the waiting lines that have formed off Southern California and even at other East Coast ports. But it sets a troubling tone as operators brace for a peak shipping season that’s likely to start in earnest in just a few weeks. Shipping volumes have been particularly strong at East Coast ports while West Coast trade has eased in recent months. But New York-New Jersey officials say their biggest problem has been a surge in empty containers that has clogged docks and hamstrung operations.

• Alphaliner says shortages of dockworkers and truck drivers are leading to significant delays at Northern European ports. (The Loadstar)
• FourKites says the volume of seaborne cargo arriving in the U.S. from China has ticked up this month. (Lloyd’s List)
   

Target’s rough quarter isn’t knocking the retailer off its plans for big supply-chain investment. The retailer’s earnings tumbled 52% in the most recent quarter despite growing same-store sales, the WSJ’s John Stensholt reports, as surging supply-chain costs sent profit margins tumbling. Target projects freight and fuel costs to be $1 billion higher this year than it had expected, and it sees supply-chain pressures continuing through the end of the year. The outlook following a weak report from Walmart triggered a Wall Street swoon that hit less-than-truckload carriers serving the retail market particularly hard. Target remains intent on expanding its own operated logistics delivery network. The retailer is adding three sortation centers this year to the six it already runs, facilities it says handled 4.5 million packages in the first quarter. Target says that should improve deliveries, even as it moves to adjust inbound volumes and inventories to match sales.

• U.S. stock indexes fell sharply following signs that rising costs are weighing on some companies’ profits and that consumers are moving away from goods retailers. (WSJ)
• First-quarter comparable sales at home-improvement retailer Lowe’s fell 4%. (WSJ)

The push by shipping lines into the airfreight business is reaching a new level. France’s CMA CGM is taking a stake in Air France-KLM as part of a deal to combine the airfreight operations of both companies. The WSJ’s Benjamin Katz reports the companies struck a 10-year operating agreement that will have the companies combine and jointly market their cargo operations, including a fleet of 10 dedicated freighter aircraft as well as another 12 jets on order. The deal includes the belly-cargo operations of Air France-KLM’s passenger aircraft. The agreement marks the biggest step yet to blend ocean and airfreight business that had long been sharply separated by the strategic goals of their shipping customers and the cost of transport. By tying in with an airline, CMA CGM is gaining the reach to make it a significant player in the airfreight market.

Construction of new homes in the U.S. dipped 0.2% in April for the second month in a row. (MarketWatch)

The U.K.’s annual rate of inflation jumped to a 40-year-high in April. (WSJ)

The Biden ad­min­is­tra­tion is in­vok­ing the De­fense Pro­duc­tion Act to in­crease pro­duc­tion of baby for­mula and will use com­mer­cial air­craft to pick up over­seas formula. (WSJ)

New York state is accusing Amazon of discriminating against pregnant and disabled workers at its worksites. (Reuters)

Shipping line Zim raised its earnings guidance after concluding trans-Pacific contracts at sharply higher than expected rates. (TradeWinds)

Intra-Asia carriers are posting record first-quarter profits as larger carriers shift their capacity into major trade lanes. (Journal of Commerce)

Notarc Management and a unit of Mediterranean Shipping Co. will take over the ongoing construction of a $1.4 billion container port at the Panama Canal. (AJOT)

Air Canada will stop operating virtual freighters with cargo in the main cabins of passenger aircraft. (Air Cargo News)

Florida-based freight broker Fox Logistics is acquiring freight automation platform Boxton. (DC Velocity)

Outdoor recreation retailer REI named former TireHub executive Sylvia Wilks as its chief supply chain officer. (Supply Chain Dive)

Dollar Tree named John Flanigan, a head of supply chain at rival discount retailer Discount General, as its chief supply chain officer. (Supermarket News)

Fashinza, a supply-chain marketplace for fashion brands, raised $100 million in a Series B funding round. (TechCrunch)

A global shortage of Rolex watches is spreading to other luxury watch brands. (Bloomberg)

CORRECTION
The Cass Freight Index declined 0.5% year-over-year in April. Wednesday’s newsletter listed the incorrect data on the measure of U.S. freight shipments.

Paul Page is editor of WSJ Logistics Report. Write to him at paul.page@wsj.com.

Follow the WSJ Logistics Report team: @PaulPage and @pdberger. Follow the WSJ Logistics Report on Twitter at @WSJLogistics.