Today's newsletter was written by WSJ Logistics Report's Erica E. Phillips.

New maritime environmental regulations are driving some big-ship operators toward liquefied natural gas-powered ocean vessels. Major cruise liners and ocean freight companies have ordered hundreds of LNG-powered vessels, the WSJ’s Paul Garvey reports, in an effort to meet 2020 standards that reduce the amount of sulfur permitted in the oil used by ships. LNG as a fuel is being taken up more readily in the cruise ship industry, which is much smaller than the freight-carrying shipping business, but France’s CMA CGM SA has ordered nine new ultra-large LNG-powered container ships and struck a 10-year LNG supply deal with French oil and gas producer Total. For cargo carriers, LNG may be inadequate or too expensive a solution in the near term, and many operators are exploring other solutions to meet the regulations such as low-sulfur fuel and sulfur-trapping exhaust “scrubber” systems.

Toy suppliers weren’t expecting their largest customer to go belly up. Toy makers like Mattel Inc., Hasbro Inc. and Crayola LLC had good reason to believe Toys “R” Us would work through its problems after seeking bankruptcy protection last fall, the WSJ’s Gretchen Morgenson and Lillian Rizzo write, but a small group of hedge funds halted the effort and forced the retailer to liquidate. The experience highlights the complicated factors beyond online competition and changing consumer habits that are buffeting retailers. In this case, hedge fund managers decided the iconic retailer was worth more dead than alive. That left Toys “R” Us suppliers, many of whom continued shipping new merchandise after the chapter 11 filing, facing at least $350 million in losses. Their products were sold off quickly in going-out-of-business sales, allowing the company to pay off creditors but leaving vendors holding little more than invoices.

China’s e-commerce leader is having a tough time trying to make a profit in traditional retail. Alibaba Group Holding Ltd. has been investing in brick-and-mortar stores, online video services and food delivery over the past year, the WSJ’s Jacky Wong writes, and finding that those ventures are boosting revenue but are dragging down margins. Initiatives such as its Hema supermarkets, logistics subsidiary Cainiao and the Ele.me food delivery service don’t appear to be making much money while growth is cooling in Alibaba’s core e-commerce operation. The company’s operating profit last quarter was more than halved from a year ago. While the new investments could take time to turn a profit, Alibaba’s success as a virtual retailer doesn’t appear to be translating into its real world ventures where it has yet to prove that physical stores can complement an online business.

H&M’s business is overstocked and going out of style. About three years ago the retailer’s formula of low prices, high fashion and convenient locations stopped working, the WSJ’s Stephen Wilmot writes in Heard on The Street. H&M hasn’t kept up with its fast-growing online competitors, expanding discount retail chains like Primark or supply-chain innovators like Zara-owner Inditex, and its sales are floundering. H&M’s stock has fallen more than 60% in the past three years as profits have plunged and the scale of the company’s problems has become clear, and it could fall further. The mall retailer has started investing more aggressively in the logistics required to speed up the supply chain and integrate online and store operations, but the results have been mixed. Like other retailers, the store owner likely needs to get smaller before it can get more profitable.

The number of Americans applying for new unemployment benefits fell for the third straight week. (WSJ)

Sales of new homes in the U.S. fell in July for the second straight month. (WSJ) 

Argentina’s economy contracted 6.7% in June, the third consecutive monthly decline. (WSJ) 

The U.K. government published detailed advice for businesses on preparing for Brexit, including customs arrangements. (WSJ) 

U.S. and Mexican officials say they are making advances in trade talks but played down the chances of an imminent deal. (WSJ)

Swine flu is hitting Chinese pig farms as tariffs on imported pork force the country to rely more on local product. (WSJ) 

Comparable-store sales at Gap Inc.’s flagship brand declined 5% in the most recent quarter. (WSJ)

Hormel Foods Corp. cut its sales outlook as it faces increasing supplies of meat products after China imposed import tariffs. (WSJ)

Honeywell International is breaking out two of its business units as part of an effort to simplify its operations. (WSJ) 

Sears Holdings Corp. is closing 46 more stores. (WSJ) 

Victoria’s Secret’s same-store sales fell in the latest quarter.  (WSJ)

Kroger Co. will eliminate plastic shopping bags from its 2,800 supermarkets by 2025. (WSJ) 

Consumer-goods supplier  Li & Fung is splitting off its logistics operation into a separate, publicly-traded business. (South China Morning Post)

Hurricane Lane triggered port closures in Hawaii that will disrupt cargo for at least seven days. (KHON)

Descartes Systems Group Inc. acquired fleet-tracking technology provider PinPoint GPS Solutions Inc. (DC Velocity)

Mitsubishi Corp. and meat processor Indiana Packers will purchase meat producer Specialty Foods Group. (Nikkei Asian Review)

Container volumes at the ports of Hamburg in Germany and Gothenburg in Sweden have been stagnant or shrinking this year. (Lloyd’s List)

River Rhine water levels are forecast to decline further in the coming weeks, worsening problems for European barge operations. (Platts)

JD.com-backed China Logistics Property will set up funds to co-invest in warehousing projects. (Reuters)

Milwaukee businesses are pushing to revive an intermodal cargo terminal to handle an expected increase in shipments for the  new Foxconn Technology Group plant. (Milwaukee Journal-Sentinel)

The Georgia Ports Authority opened an inland container terminal for the Port of Savannah. (Progressive Railroading)

Texas wants at least $12 billion to build a 60-mile “spine” of coastal barriers to protect petrochemical infrastructure. (Associated Press)

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

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