The coronavirus is starting to take a toll on Italy’s shipping industry and the country’s beleaguered supply chains. Shipowners are asking the government for an extensive support package, including direct state funding over three years, the WSJ Logistics Report’s Costas Paris writes, in a sign of the pandemic’s escalating impact on commercial transportation in Europe’s hardest-hit country. Italy has exempted its ports from lockdowns in order to keep supply lines for essential medical goods and food intact. But industry officials say distribution channels are fraying. The growing number of people in quarantine in the country is slowing handling from ports to roads, and companies say Italy-flagged vessels are being turned away or quarantined in some countries. Experts warn that could have a cascading effect on logistics operations across Europe and Asia as lockdowns and handling delays undercut the positioning of containers in supply chains.

Another swath of cargo capacity may disappear from aviation networks. Major U.S. airlines are drafting plans for a potential voluntary shutdown of virtually all passenger flights across the U.S., the WSJ’s Andrew Tangel and Alison Sider report, as travel demand withers and the nation’s air-traffic control system continues to be ravaged by the coronavirus contagion. U.S. airlines have already eliminated the vast majority of international flying and have announced plans to cut back domestic flying by as much as 40%. The passenger planes provide a significant portion of domestic airfreight capacity. Most of it serves bulk-loaded, smaller shipments but the large number of daily flights give the airlines an important role for expedited goods. One option to keep cargo shipments flowing would be a decision to call up portions of the Civil Reserve Air Fleet, which enlists commercial jets to help the Pentagon with logistics during national emergencies.

The coronavirus pandemic is pushing retail supply chains in very different directions. Companies that haven’t embraced e-commerce or sell nonessential items such as fashion are crumbling as sales plummet, the WSJ’s Suzanne Kapner reports, while soaring online sales at general-merchandise stores have sellers like Amazon.com Inc. and Walmart Inc. struggling to keep up with demand. One survey found one-third of households said they used online grocery pickup or delivery during the week ending March 13, and 40% of those tried it for the first time, eating up delivery slots for groceries. Even retailers that have fledgling e-commerce businesses like Rite Aid Corp. are seeing huge growth. Meanwhile, footwear and apparel isn’t selling and some nonfood retailers are discounting to clear out excess goods. Not all clothing is stacking up, however. With more people working from home, the numbers of sold-out sweatpants and bathrobes have jumped from a year ago.

The White House reached a deal with lawmakers on an estimated $2 trillion stimulus package to shield the U.S. economy. (WSJ)

The IHS Markit purchasing managers index for economic activity in the U.S. fell to a record low. (WSJ)

India is locking down the country, including factories, for 21 days. (WSJ)

Democratic lawmakers say the U.S. Postal Service faces “imminent bankruptcy” without billions of dollars in government help. (WSJ)

CVS Health says its supply of pharmaceuticals remains steady as the coronavirus pandemic roils manufacturing and distribution markets. (WSJ)

Distillers across the U.S. are retooling production lines to make hand sanitizer. (WSJ) 

Chevron is cutting its capital budget by $4 billion as it confronts plummeting petroleum demand and an oil-price rout. (WSJ)

Modell’s Sporting Goods is asking a judge to suspend its bankruptcy case, citing the impact of coronavirus restrictions. (WSJ)

Amazon Chief Executive Jeff Bezos was among corporate leaders selling large volumes of shares shortly before the coronavirus outbreak went global. (WSJ)

Amazon temporarily closed a warehouse in Shepherdsville, Ky., after multiple workers tested positive for coronavirus. (WSJ)

Coca-Cola Chief Executive James Quincey says the company’s supply chain is “creaking around the world” due to the coronavirus pandemic. (CNBC)

Japan will extend emergency loans to companies trying to bring home overseas production facilities. (Nikkei Asian Review)

FedEx has created a dedicated transportation system for handling coronavirus test specimens. (DC Velocity)

Amazon has suspended more than 3,900 seller accounts for price gouging on coronavirus-related items. (Bloomberg)

Container lines face an imminent cash crunch that will push several to seek extended credit from vendors. (Lloyd’s List)

European regulators extended an exemption for shipping lines from some competition rules. (Journal of Commerce) 

Troubled container line Pacific International Lines is seeking extensions on debt payments to creditors. (Splash 247)

Truck maker Navistar International suspended production at its Springfield, Ohio, plant. (Springfield News-Sun)

Truck and engine maker Paccar will suspend production at its factories worldwide for more than two weeks. (Commercial Carrier Journal)

Arkansas-based trucker P.A.M. Transportation laid off 50 office workers and drivers because of automotive plant closures. (Talk Business)

Outdoor apparel retailer L.L. Bean is having workers at its main distribution hub package food for pantries across Maine. (Associated Press)

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

Follow the WSJ Logistics Report team: @PaulPage, @jensmithWSJ, @CostasParis. Follow the WSJ Logistics Report on Twitter at @WSJLogistics.