The boom in the logistics property market appears to be over. Leased industrial space across the U.S. tumbled 28.2% from the third quarter to the fourth quarter, the WSJ Logistics Report’s Liz Young writes, as a drop in demand measured by Cushman & Wakefield accelerated during the second half of 2022. Space remains tight, with the vacancy rate averaging 3.3% during the last three months of the year. But that was a tick up from the end of the summer and companies that had been building at a frenetic pace now face a potential glut in the market. The pullback comes as retailers rein back their inventory replenishment efforts in an increasingly uncertain economy and the online sales surge that helped fuel new warehouse demand is waning. Receding demand could bring down prices, but that will take time in a business built on long-term leasing contracts.

Bed Bath & Beyond is teetering after a terrible holiday season. The troubled home-goods retailer is preparing to file for bankruptcy protection after coming up short on sales during the critical period. The WSJ’s Jodi Xu Klein, Soma Biswas and Suzanne Kapner report the retailer’s discussions on a filing could extend into next month after it warned that it is running low on funds and has substantial doubt that it can stay in business. Bed Bath & Beyond has been trying to refinance debts and reassure suppliers wary of working with the retailer after it fell behind on payments last year. CEO Sue Gove says holiday-season sales were hurt by inventory constraints as reduced credit limits left stores without enough stock. Some vendors say they have pulled back or have refused to ship unless they are paid cash in advance or get vendor insurance, which is also becoming scarce.

• Conagra Brands raised its outlook after sales increased 8.3% last quarter. (WSJ)
• Quarterly sales at Walgreens fell on waning demand for Covid tests and vaccines. (WSJ)

Flexport is extending its reach into the technology sector as it plots its next growth path. The San Francisco-based digital-focused freight forwarder named former Microsoft and Amazon executive Teresa Carlson as its president and chief commercial officer. The WSJ Logistics Report’s Paul Berger writes that Ms. Carlson is the latest former Amazon figure to join Flexport, as Dave Clark, who was the force behind the e-commerce giant’s enormous logistics expansion in recent years, prepares to become sole chief executive at Flexport on March 1. As the onetime head of Amazon Web Services’ public-sector business, Ms. Carlson is expert in cloud computing and a leader in the tech community. That’s not the usual background for freight-forwarding executives, and it suggests Flexport has high ambitions for global expansion. The company already has strong venture-capital backing and now is adding an expert in what Mr. Clark says is “scaling businesses globally.”

• Corporate leaders are growing disillusioned with the results of rollouts of artificial intelligence technology projects. (WSJ)

U.S. imports plummeted more than 6.4% in November while exports fell 2%. (WSJ)

ADP says private-sector employment growth accelerated in December. (MarketWatch)

Tesla’s deliveries of China-made vehicles fell sharply from November to December. (WSJ)

Ford’s U.S. auto sales declined 2% last year. (WSJ)

A report says India will produce as many iPhones as China by 2027. (South China Morning Post)

Computer maker Dell aims to stop using chips made in China by 2024. (Nikkei Asia)

Factories in India’s textile hub region of Surat are struggling under financial strains and dimming orders. (Sourcing Journal)

Iran’s oil exports increased 3.3% last year despite U.S. sanctions. (Lloyd’s List)

China’s logistics sector shrank for a third straight month in December. (Caixin Global)

ShipMatrix data show parcel carriers had strong on-time delivery performance during the holiday period. (Logistics Management)

U.S. regulators are toughening financial requirements on freight brokers. (Fleet Owner)

Forward Air is acquiring rival expedited trucker Land Air Express for $56.5 million. (Commercial Carrier Journal)

European operators are bulking up intermodal connections as a pandemic shift to rail freight accelerates. (The Loadstar)

Evergreen Marine will have to pay another $676,000 to restore Chesapeake Bay oyster beds damaged by the grounding of the Ever Forward. (WTOP)

Sony says shortages of its PlayStation 5 game consoles are ending. (Barron’s)

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

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