China’s Cosco is back in the crude shipping business and oil markets are likely to feel the impact. The U.S. has removed sanctions on two tanker operators in China’s Cosco Group, the WSJ’s Ian Talley and Costas Paris report, setting the stage for dozens of idled tankers to return to the busy transport trade. The new order affects units of Cosco Shipping Energy Transportation Ltd. which were blacklisted last year for allegedly transporting Iranian oil in violation of U.S. prohibitions. Cosco has lost tens of millions of dollars since the blacklisting as oil traders have been coping with tight transport capacity. Freight rates for large tankers jumped after the sanctions hit and remain inflated. That’s been a boon to tanker operators, but fears over falling demand from the coronavirus are already weighing on rates and the return of Cosco’s tankers is likely to push pricing still lower.

IKEA is adding some supply-chain technology to its iconic Swedish meatballs. The Swedish furniture giant is starting a digital overhaul of its food division, the WSJ Logistics Report’s Jennifer Smith writes, bringing a broader company drive for greater supply-chain efficiency to an operation once treated as decidedly secondary to its core retail sales. Food service is still just 5% of IKEA’s overall world-wide revenue, but at $2.37 billion in sales last year the company is managing big volumes of meatballs and lingonberry jam. The deeper look at the food supply chain came after a food-safety scandal in Europe in 2013, and IKEA now sees opportunity for big cost savings from a more disciplined approach across its global enterprise. The project includes digitizing operations, as the retailer does with its furniture business. That should improve inventory management and give IKEA a chance to apply demand planning to its restaurant lines.

Fears over the impact of the coronavirus are seeping into high-tech supply chains. Numerous electronics components suppliers operate factories in China’s Wuhan region at the epicenter of the outbreak, the WSJ’s Dan Strumpf reports, and companies including Apple Inc. are scanning their global production maps to identify alternate sources of parts should the Chinese factory shutdowns persist. The extent of the impact isn’t known yet: China’s government has extended the Lunar New Year break, and many companies say they won’t reopen factories until Feb. 9. Supply-chain analyst Stephanie Krishan of International Data Corp. says contingencies that companies have developed over trade uncertainty should help some of them weather the current. But the WSJ’s Mike Bird writes that experience from previous supply shocks suggests the effect on global industrial supply chains will be far-reaching and could linger for years as companies rethink their risks and reset their sourcing and production.

January surveys of factories in Asia and Europe showed a slower decline in output, with shrinking inventories and stabilizing new orders. (WSJ)

Measures of U.S. consumer spending and wage growth eased in December. (WSJ)

The Canadian economy expanded slightly in November on a strong advance in the utilities sector. (WSJ)

The U.S. Coast Guard issued new restrictions on ships entering the country's seaports from China. (WSJ) 

The U.K.’s departure from the European Union leaves essential questions over trade and customs procedures to be thrashed out over a transition period. (WSJ)

Boeing has lined up a $12 billion bank loan and may increase it and tap the commercial paper market to counter the cash drain from the ongoing 737 MAX crisis. (WSJ) 

Airbus agreed to have its global defense business monitored by an external compliance officer for at least two years as part of a settlement of bribery charges. (WSJ)

Caterpillar expects demand for its machinery to fall this year, widening a performance gap between some manufacturers and an otherwise robust U.S. economy. (WSJ)

Industrial conglomerate Honeywell International’s fourth-quarter sales fell 2.4% and profit tumbled 9%. (WSJ)

The Trump administration is starting talks with Kenya on a trade deal it hopes will become a model to replace a multilateral Africa agreement. (Financial Times)

Container lines have canceled twice the number of Asia-Europe services so far this year than they eliminated during last year’s first quarter. (Lloyd’s List)

The Baltic Capesize Index measuring rates for the largest bulk ships plunged 98.9% as the market moved away from vessels not fitted with emissions scrubbers. (Splash 247)

Two crew members died and others are missing in the fire that hit a tanker near the Strait of Hormuz last week. (TradeWinds)

Online luxury fashion platform Farfetch raised $250 million in a new funding round. (Sourcing Journal)

Australian courier company Toll Group has halted all deliveries after suffering a cybersecurity breach. (Sidney Morning Herald)

Japanese parcel companies are scheduling more early-morning deliveries to meet soaring e-commerce demand. (Nikkei Asian Review)

Nippon Cargo Airlines’ parent took a $144 million impairment charge on deteriorating business conditions and an allowance for “doubtful accounts.” (The Loadstar)

United Parcel Service expanded its drone delivery service with Matternet to the University of California San Diego health system. (Healthcare Packaging)

Ferrara Candy will build a 1.6 million-square-foot distribution complex in DeKalb, Ill., west of Chicago. (Norrhern Star)

McCormick will spend up to $350 million to upgrade its SAP enterprise resource planning system. (Supply Chain Dive)

SC Johnson will work with the Milwaukee Brewers baseball team to recycle stadium beer cups into plastic bottles. (Plastics Today)

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.