The U.S. import surge is only growing. Unyielding consumer demand and an easing of supply-chain constraints drove a surge in inbound volumes in November, the WSJ’s Harriet Torry reports, pushing the U.S. goods deficit to a record $99 billion. Goods imports jumped 5.1% in November, with industrial supplies and materials making up half the increase and consumer products accounting for about a quarter of the gain. The inbound flows that have swamped U.S. ports came as goods exports slipped back, adding to an imbalance that some American exporters say is being compounded by ocean carrier efforts to rush empty shipping containers back across the Pacific. Andrew Hunter of Capital Economics says it’s “the ongoing strength of U.S. retail spending that’s one of the big drivers” of the importing frenzy. Experts expect the demand to remain high but congestion at U.S. ports along with the pandemic’s impact remain wild cards.

The financial toll on retailers from the past year’s supply-chain turbulence is starting to take shape. Household goods merchant Bed Bath & Beyond just posted a big sales decline for the quarter that includes part of the holiday season, and the WSJ’s Suzanne Kapner and Matt Grossman report that supply-chain issues dented sales by about $100 million in the quarter. The problems at Bed Bath & Beyond went beyond empty shelves during the critical quarter, as a shortage of paper and labor constraints curtailed the company’s distribution of circulars, a big driver of sales. That sent the retailer to a $276.4 million loss during a period when U.S. retail sales were growing. The pain for companies may not wane soon. Food supplier Conagra Brands now expects Covid-19’s Omicron variant to stress food supply chains and stretch staffing at a business already struggling to maintain service levels.

Rivian Automotive is looking to put sales of its electric vehicles ahead of profits as it scales up its supply chain. Finance chief Claire McDonough tells the WSJ’s Nina Trentmann the automobile and parcel van upstart wants to “prioritize our ability to rapidly bring new vehicles to market.” That road map includes a second U.S. plant in Georgia that would have an annual capacity of 400,000 vehicles after production starts in 2024. Rivian plans a combined $8 billion in capital spending over the next two years to ramp up competition with traditional auto makers. One of those, Stellantis, hit at Rivian’s efforts in the parcel market this week with a deal to sell “tens of thousands” of Ram ProMaster package vans to Amazon, according to the Financial Times. Amazon is a major Rivian shareholder and has signed up for 100,000 parcel vans from the company.
 

Orders for U.S. manufactured goods rose in November for the 18th time in the past 19 months. (MarketWatch)

Initial unemployment claims remain near a five-decade low in a tight U.S. labor market. (WSJ)

U.S. services sector activity grew in December at a sharply slower pace. (MarketWatch)

Quarterly sales at Walgreens rose at the fastest pace in 20 years as the rush for vaccines and Covid-19 tests brought more people into its stores. (WSJ)

Brazil's pork exports rose 11% last year to a record high. (Dow Jones Newswires)

Honda will open an electric-vehicle assembly plant in Wuhan, China. (Nikkei Asia)

British freight forwarders told government regulators that growing concentration in shipping is distorting markets and diminishing competition. (Lloyd’s List)

Tight terminal space at the Los Angeles and Long Beach ports is leaving container ships waiting longer at berths. (Journal of Commerce)

Australia’s coal exports-focused Port of Newcastle plans to run its operations on renewable energy by 2040. (The Guardian)

Navios Maritime Holdings closed on a $550 million refinancing that allowed the bulk-vessel owner to pay off $614 million in maturing bonds. (TradeWinds)

Atlas Air ordered four new Boeing 777 freighters for delivery starting in November. (Air Cargo News)

Flytrex won U.S. regulatory approval to fly its delivery drones up to a nautical mile from its three North Carolina stations. (Supply Chain Dive)

Less-than-truckload carrier Saia signed a letter of intent to buy or lease up to 100 of Nikola's heavy-duty electric trucks. (Dow Jones Newswires)

Fourteen state attorneys general want the U.S. to drop a proposed rule allowing liquefied natural gas to be shipped by rail. (Natural Gas Intelligence)

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

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