Consumer-goods companies are looking hard at logistics strategies as they try to reduce historically high shipping costs. Procter & Gamble is predicting slower sales and continuing historically high raw materials and transportation costs for the rest of the year. The WSJ’s Sharon Terlep reports that the maker of Pampers diapers and Tide detergent is adjusting shipping operations to rein in its spending and make more efficient use of its sprawling distribution network. Finance chief Andre Schulten says the company is allowing some online retailers to use its warehouses as distribution centers, for instance, to offset logistics expenses. In some cases, the company is also bypassing P&G facilities and shipping goods directly to retailers, particularly bulky products such as paper towels and toilet paper. The steps will hardly save the budget: P&G still expects to take a $1.9 billion after-tax hit on higher freight and commodity costs this year.

Tensions are flaring again in Middle East oil transport operations. A suspected drone attack on an Israeli-linked tanker in the Arabian Sea killed two crew members, the WSJ’s Benoit Faucon and Stephen Kalin report, marking the first deaths after numerous strikes in recent years on ships in the region. Authorities are pointing at Iran as the likely source of the attack on the Liberian-flagged product tanker, Mercer Street. The attack was reminiscent of a string of attacks against tankers in the vital global shipping lanes in 2019 that the U.S. blamed on Iran. More recently, Israel has targeted at least a dozen Iranian vessels or those carrying Iranian cargo with weaponry including water mines. The tanker attacked last week had been working a relatively short lane between Dar es Salaam in Tanzania to Fujairah in the United Arab Emirates. The ship has been linked to Israeli billionaire Eyal Ofer’s group.

Add the big oil companies to the growing list of businesses picking profits over production. Suppliers are raking in their highest profits since the onset of the pandemic, but the WSJ’s Christopher M. Matthews reports they plan to continue spending sparingly to boost production despite higher commodity prices. That is disappointing news for shipping’s tanker sector, which has faced depressed earnings since demand receded last year. Experts are forecasting little growth in oil shipping demand over the next couple of years. Exxon Mobil, Chevron and Royal Dutch Shell all reported multibillion-dollar profits for the second quarter, marking a steep recovery from last year’s unprecedented losses. Oil prices this year have reached their highest levels in two years but none of the major western producers say they will increase capital spending. That’s in part because the companies face pressure from investors to moderate growth and clean up their emissions.

Expansion in China’s factory sector hit the lowest level in nearly a year and a half in July. (WSJ)

U.S. household spending rose 1% in June after slipping in May. (WSJ)

A measure of U.S. consumer confidence fell in July as inflation concerns increased. (MarketWatch)

A measure of business conditions in the Chicago region expanded sharply in July. (MarketWatch)

Two small U.S. solar companies plan to petition the government to extend tariffs on solar cell and panel imports. (WSJ)

Sawmill operators are reporting strong profits for a spring quarter that was marked by surging lumber prices. (WSJ)

BHP is seeking government-mediated talks to avoid a strike after workers at the giant Escondida copper mine rejected a final contract offer. (Reuters)

Retailer Tractor Supply plans to add three distribution centers in the U.S. over the next five years. (Supply Chain Dive)

Second-quarter sales at industrial parts supplier Grainger were up 13% from a year ago and rose from the first quarter. (Industrial Distribution)

Port Houston reopened two container terminals two days after a major technology failure halted operations. (Port Technology)

Hapag-Lloyd boosted its full-year outlook after projecting close to $3 billion in operating earnings in the first half of the year. (ShippingWatch)

Matson’s operating earnings nearly tripled in the second quarter to $254.3 million as China container volumes rose 59%. (Journal of Commerce)

Vietnamese rail operators launched direct freight rail service between Vietnam and the European Union. (Vietnam Investment Review)

Ocean freight forwarder ECU Worldwide took a controlling stake in Sweden-based Nordicon. (LiveMint)

Second-quarter operating earnings at French forwarder Geodis jumped 60% to about $543 million on a 21% gain in revenue. (Logistics Manager)

Airfreight volume at forwarder DSV Panalpina rose 26% in the second quarter. (Air Cargo World)

The Port of Rotterdam is selling tickets to see the Ever Given container ship. (WSJ)

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

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