Good morning readers,

The world's biggest sporting event is also becoming one of the world's biggest logistics operations.

As the 2026 FIFA World Cup kicks off across the United States, Canada, and Mexico, supply chains are gearing up for a month-long transportation marathon.

More than 1 million pounds of team equipment will be moved between 104 matches using a fleet of 5,000 vehicles, while organizers will rely on warehouse space equivalent to 14 soccer fields to keep the tournament running smoothly.

Fans are expected to spend roughly $280 million on food and beverages during the tournament, requiring precise demand forecasting, cold-chain logistics, inventory management, and real-time replenishment across dozens of venues.

Let's dive into today's edition.

After nearly four years of weak freight demand and depressed rates, the U.S. trucking industry is showing signs of a sustained recovery. Industry executives say freight rates have risen to profitable levels as hundreds of thousands of carriers have exited the market following years of low earnings, rising costs, and stricter regulations.

What’s Happening? Transportation prices surged in May at the fastest pace in the 10-year history of the Logistics Managers’ Index, while dry-van spot rates climbed 52% year-over-year excluding fuel surcharges.

Unlike previous recoveries driven by stronger freight demand, industry leaders say the current rebound is being fueled primarily by reduced trucking capacity rather than a sharp increase in shipment volumes.

Positive Signs: Major carriers are already responding to the improving market. Companies such as Estes Express Lines and J.B. Hunt Transport Services report stronger conditions and are expanding fleets and hiring drivers.

Big Picture: Analysts say the industry has finally reached a healthier balance between truck supply and freight demand, although future growth will depend on manufacturing activity, consumer spending, and interest rate decisions

Ocean freight rates are rising sharply as the war in Iran continues to disrupt global supply chains, raise fuel costs, and create congestion at key transshipment hubs.

Rising Rates: According to freight platform Xeneta, spot container rates from Asia to the U.S. West Coast have surged 109% since the conflict began in late February, while rates from Asia to Northern Europe have climbed more than 50%.

What’s the reason? The latest increases are being driven by a combination of higher fuel surcharges, tightening vessel capacity, and growing congestion at major Southeast Asian hubs such as Singapore and Port Klang.

Rerouted shipments linked to disruptions around the Strait of Hormuz are creating bottlenecks across trade lanes, even on routes that do not pass through the Middle East.

Future Outlook: With July and August marking the traditional inventory restocking season, carriers are expected to continue raising rates, particularly if importers accelerate shipments to avoid further disruptions.

U.S. exports of recycled tungsten are surging as manufacturers scramble to secure supplies following China's latest export restrictions on the critical mineral.

Key Numbers: Shipments of U.S. tungsten scrap to Japan reached 590,000 kilograms in the first quarter alone, nearly 24 times the volume exported during all of 2025, while total U.S. tungsten scrap exports tripled year-over-year to 1.72 million kilograms.

Backstory: The rush for alternative supplies comes as China, which controls roughly 80% of the global tungsten market, has tightened export controls and reduced mining quotas. Tungsten is a critical input for cutting tools, semiconductors, electronics, and defense applications.

Prized Possession: The scramble for supply has sent prices soaring. U.S. tungsten scrap prices reached $167.50 per pound in May, up from less than $40 a year ago.

Chinese Competition: Industry executives say Chinese buyers are also competing aggressively for U.S. scrap supplies, prompting calls for tighter export controls as Washington and its allies seek to strengthen domestic critical mineral supply chains

One of the U.S. auto industry's most critical suppliers is coming back online. Novelis, the largest domestic producer of automotive aluminum sheet, is restarting its Oswego, New York, plant nine months after a pair of fires knocked the facility out of operation and triggered supply disruptions across the automotive sector.

Most Affected: The outage hit automakers particularly hard because the plant supplies aluminum used in vehicle body panels, hoods, and fenders for companies including Ford, General Motors, and Stellantis. Ford was among the most affected, as shortages constrained inventories of its aluminum-intensive F-150 pickup during a key selling season.

Why does this matter? The restart comes at a critical moment. Aluminum markets are already under pressure from 50% U.S. import tariffs and supply disruptions linked to the Iran conflict, both of which have driven prices higher. While the Oswego facility will initially operate below full capacity, its return should provide some relief to automakers as demand for lightweight aluminum continues to grow

A growing number of oil tankers are quietly bypassing the blocked Strait of Hormuz using a narrow route along Oman’s coastline under U.S. military protection. According to President Trump, the operation has already helped move 100 million barrels of crude and enabled roughly 200 commercial vessels to transit the region.

Helping Hand: The workaround is helping ease pressure on global energy markets. Around 15 ships per day now use the route, while ship-to-ship oil transfers outside the Gulf have surged as traders seek alternative routes to move cargo. Analysts estimate that roughly 3 million barrels per day of Gulf crude are still finding their way to market despite the disruption.

Risky Route: But the solution comes with significant risks. Ships are reportedly sailing at night with GPS systems turned off through channels as narrow as 800 meters, raising concerns about collisions and navigation hazards. Even with the increase in traffic, volumes remain well below the roughly 135 ships per day that crossed Hormuz before the conflict.

U.S. rail freight continues to gain momentum, with intermodal traffic driving another week of strong growth across North America's rail network.

Increasing Traffic: U.S. rail traffic rose 7.8% year-over-year for the week ending June 6, extending a recent streak of strong freight growth. Total volume reached 521,804 carloads and intermodal units, with intermodal traffic continuing to lead the gains. Containers and trailers increased 13.6%, marking the third consecutive week of double-digit growth.

Growth Story: Traditional rail carloads rose a more modest 1% to 228,076 units, while intermodal volume climbed to 293,728 units. The latest figures follow intermodal growth of 11.5% and 10% in the previous two weeks, highlighting sustained strength in containerized freight movements across the network.

Key Numbers: For the year to date, U.S. railroads have moved 11.1 million carloads and intermodal units, up 2.7% from the same period in 2025. Across North America, total rail traffic increased 6.4%, with particularly strong gains in Mexico, where intermodal volumes surged 54% from a year earlier.

A federal appeals court has ruled that the U.S. government can continue collecting President Donald Trump’s 10% global tariffs while legal challenges work their way through the courts. The decision gives the administration a temporary victory after a lower trade court last month found the tariffs were unlawful.

Key Details: The tariffs were imposed in February under Section 122 of the Trade Act of 1974, following the Supreme Court's decision to strike down broader tariffs introduced last year. The provision allows presidents to impose tariffs of up to 15% for 150 days to address international payments imbalances. The Trump administration argues that persistent U.S. trade deficits justify the use of the measure.

What’s Next? The ruling does not resolve the broader legal dispute, which centers on whether trade deficits qualify as the type of economic problem contemplated under Section 122.

A lower court previously ruled that the tariffs exceeded presidential authority and were not authorized by law. With the tariffs set to expire on July 24, the case is expected to continue through the appeals process and could ultimately reach the Supreme Court of the United States.

Two U.S. senators are urging the Trump administration to reinstate port fees on Chinese-linked vessels, arguing the policy is essential to rebuilding America's struggling shipbuilding industry.

Chinese Dominance: In a letter to U.S. Trade Representative Jamieson Greer, Senators Elizabeth Warren and Mark Kelly said Chinese shipbuilding dominance poses economic and national security risks.

Port Fees: The fees, which were briefly imposed last October, charged Chinese vessel operators $50 per net ton and Chinese-built ships owned by foreign carriers $18 per net ton when calling at U.S. ports. The lawmakers said the policy generated significant revenue, with Chinese carriers paying nearly $43 million in fees during the first week alone.

Big Picture: The senators also argued that the threat of fees had an immediate impact on global shipbuilding orders. According to their letter, orders at Chinese shipyards fell 23.5% during the first nine months of 2025 after the policy was announced.

President Donald Trump's tariff campaign has yet to significantly reshape America's trade balance, with the U.S. trade deficit remaining largely unchanged in April despite more than a year of shifting trade policies.

Key Numbers: The U.S. trade gap narrowed slightly to $55.9 billion in April as imports rose 2% to $383 billion and exports increased 2.6% to $327.1 billion. Strong demand for artificial intelligence infrastructure boosted semiconductor and computer imports, while aircraft exports and a surge in crude oil shipments helped lift outbound trade.

U.S. crude exports alone increased by $6.4 billion during the month as disruptions in global energy markets continued to reshape trade flows.

Same State: The latest figures suggest that while tariffs have altered where and how goods move, they have done little to change America's position as a major net importer. Since Trump's return to office, the monthly trade deficit has averaged just over $70 billion