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Toyota to Return Tacoma Production to Texas; Maersk, Hapag-Lloyd Shift Route Back to Red Sea By Mark R. Long | WSJ Logistics Report

Toyota said it will spend $3.6 billion to bring production of its Tacoma pickup back to the U.S. by 2030. The Wall Street Journal's Christopher Otts writes that the company plans to build a second assembly line for the Tacoma at the San Antonio plant

where it currently assembles larger pickups and SUVs, adding 2,000 jobs.

Making more vehicles in the U.S. will help the world's top-selling automaker defray a hefty tariff bill in its largest market. Toyota currently builds the Tacoma, its top-selling midsize pickup, in roughly equal numbers at plants in Guanajuato and Baja California in Mexico. The Baja plant's production will move to San Antonio when the expansion is complete in 2030, while the Guanajuato plant's output will continue unaffected, the company said.

Toyota declined to comment on its plans for the Baja plant following the Tacoma's exit. The San Antonio plant, where Toyota assembles the larger Tundra pickup and Sequoia SUV, previously assembled the Tacoma from 2010 to 2021, when the truck was fully moved to Mexico.

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Number of the Day Ocean Shipping

A.P. Moller-Maersk and Hapag-Lloyd said a jointly operated service connecting Asia and the Mediterranean will resume transiting the Red Sea as security concerns ease.

The Journal's Joe Stonor writes that ships following the AE15 service would no longer round the Cape of Good Hope , a lengthy detour taken since December 2023 in response to attacks in the Red Sea by Yemen's Houthi militants. Shares of the Danish and German container carriers-which operate the service under their Gemini partnership-dropped as investors bet the shorter route would ease capacity constraints and lower shipping rates.

The companies said

they would closely monitor the security situation. Maersk, which raised its financial guidance

last week on a sustained increase in freight rates, said it wasn't yet considering rerouting its broader East-West network back through the Red Sea.

Shares of Zim Integrated Shipping Services shares fell after an Israeli media report that senior Israeli government officials voiced opposition

to the company's proposed merger with Hapag-Lloyd. (Dow Jones Newswires) Zim plans to deploy 11 containerships on a new express service

between China and the East Coast of South America starting in September. (Journal of Commerce) Inbound oil tankers made up close to half of total crossings

of the Strait of Hormuz last week, as shipowners return following the U.S.-Iran ceasefire. (Lloyd's List) Corrosion from sulfur cargoes is posing a growing risk of structural problems

to bulk carriers stranded in the Persian Gulf, according to consultancy Brookes Bell. (TradeWinds) Taiwanese authorities raided Evergreen Marine's offices as part of an investigation into suspected insider trading. (Liberty Times) Quotable In Other News

West Virginia Gov. Patrick Morrisey urged nearby residents to continue to shelter in place as firefighters worked to put out a blaze first sparked Saturday at a warehouse

in Parkersburg. High polymerized rubber was among the materials that continued to burn on Monday, fire crews said. (WTAP)

Eurozone retail sales volumes rose 0.2% in May , rebounding from a 0.3% decline in April. (WSJ) German manufacturing orders rose 1.9%

on month in May, following a 3.2% decline in April. (WSJ) Walmart said it is cutting prices on thousands of items , including food, household products and apparel. (WSJ) Solstice Advanced Materials agreed to buy

specialty-chemicals maker Element Solutions for more than $12 billion in cash and stock. (WSJ) Lockheed Martin signed a deal to acquire the defense company

Ultra Maritime for $3.45 billion from private-equity firm Advent International. (WSJ) Italian energy company Eni is buying a 25% stake

in the Black Giant Chilean lithium project from EnergyX for $225 million. (WSJ) Thales agreed to buy a 35.51% stake in Exail Technologies from the Gorge family, valuing the maritime robotics and navigation company

at $4.46 billion. (WSJ) Strategic cargo theft involving phishing emails, spoofed websites and other digital tactics accounted for 30% of all reported incidents

last year, according to a BSI Consulting and Munich Re Specialty report. (SupplyChain24/7) Myanmar is becoming an increasingly important logistics hub

for China, Russia and India, which are stepping up development of transportation and energy infrastructure there. (Nikkei Asia) Supply-chain software provider Descartes Systems said it acquired Drivin, a last-mile delivery-management company

serving Latin America, for $30 million. (DC Velocity) About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at [mark.long@wsj.com]. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long , Liz Young and Paul Berger .

This article is a text version of a Wall Street Journal newsletter published earlier today.