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AI Build-Out Lifts Air-Cargo Volumes, Rates; Diesel Futures Rise; EV-Battery Longevity Improves By Mark R. Long | WSJ Logistics Report
Materials needed for the AI infrastructure build-out are taking up space in cargo planes once occupied by packages of low-price apparel and knickknacks, the WSJ Logistics Report's Liz Young writes.
Companies are paying a premium to fly in bulky server racks, wafer-thin semiconductors
and other supplies from Asia rather than wait for slower, cheaper ocean transport to fuel the rapid pace of data-center construction
across the U.S.
The demand is pushing up airfreight volumes when higher U.S. tariffs are eating into the market for cheap e-commerce packages that flooded freight networks over the past several years. Air-cargo volumes from Asia to North America rose nearly 20% in May from the previous year, according to the International Air Transport Association. Global volumes increased 6% overall.
Airfreight rates are up during what is typically a slow season because of the increased demand and higher jet-fuel prices due to the war in Iran. The average spot rate for air-cargo transport from the Asia Pacific region to North America climbed 36% year-over-year in June, according to Xeneta.
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Number of the Day Energy
Oil futures rose after President Trump announced the end of an eight-week ceasefire with Iran and the U.S. launched fresh strikes
in retaliation for this week's Iranian attacks on ships in the Strait of Hormuz.
Tanker traffic through the strait had been on the upswing, prompting energy traders to start talking about an oil glut and fuel prices to tumble, The Wall Street Journal's Ryan Dezember writes. But benchmark crude futures have added nearly $5 a barrel , or more than 7%, in the two trading days since Iran resumed attacks in the vital waterway.
Diesel futures shot up even higher, gaining 11% Wednesday in New York, after Russia banned exports
of the fuel following Ukrainian long-range drone attacks on refineries. Until recently, Russia was the second biggest exporter of diesel after the U.S. Last year, the country supplied about 11% of global seaborne diesel, according to ship-tracking company Vortexa.
Electric Vehicles
Modern EV batteries are proving to be more reliable and long-lasting than many in the auto industry expected, the WSJ's Ellie Davis writes. After five years on the road, the average EV will still be able to drive up to 95% of its original range , according to Recurrent.
The newest battery-powered EVs have lifespans comparable to internal-combustion-engine vehicles, even when driven more miles, according to Viet Nguyen-Tien, a research officer at the London School of Economics. Industry analysts say battery-replacement costs are also improving as more EVs are designed for long-haul repairability.
Buyer perception hasn't quite caught up to these improvements, according to Scott Case, co-founder and CEO of Recurrent. Potential new car buyers' fear of having to pay for a battery replacement has been the top reason they steer clear of EVs, according to a 2025 survey from AutoPacific.
In Other News The IMF trimmed its global growth forecast
to 3% for 2026 from 3.1% forecast in April, but no longer projects that a prolonged Iran war could trigger a global recession. (WSJ) China's auto sales remained weak in June , with retail sales of passenger cars slumping 20.2% in the first half. (WSJ) Apple plans to spend more than $30 billion with Broadcom over the next five years to spur the production of more than 15 billion chips
in the U.S. (WSJ) A USDA official called top grocers, including Walmart, Kroger and Albertsons, to ask about their prices for beef
heading into the July 4 holiday weekend. (WSJ) Air Canada has appointed Anko Van der Werff
as its CEO, effective at the end of January 2027. (WSJ) A federal appeals court upheld the Federal Maritime Commission's finding that ocean carriers can't impose
detention charges that don't serve to promote the efficient movement of cargo. (gCaptain) The Hamilton Township Committee in New Jersey approved a 29-year tax-incentive deal with Amazon to build a sortation center
at the site of the former Atlantic City Racecourse. (NJ.com) 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.
(END) Dow Jones Newswires
July 09, 2026 07:02 ET (11:02 GMT)
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