Western importers are reporting a steep rise in ocean transport costs and weeks-long delays as turmoil in the Red Sea region overhauls shipping operations. Some companies shipping goods on the crucial trade lane are starting to chafe at the rising prices and extra fees that ocean carriers are imposing. The WSJ’s Paul Berger and Costas Paris report that billions of dollars’ worth of goods have shifted away from the channels leading to the Suez Canal as carriers divert ships to avoid Houthi rebel attacks. Average worldwide costs to ship 40-foot-long containers have nearly doubled since late November, according to Drewry Shipping Consultants. The increases have also accelerated in the past two weeks on routes that traditionally use the Suez. The higher costs are hitting even importers that negotiate longer-term contract rates, industry experts say, because operators are imposing surcharges amounting to hundreds of dollars per box on some traffic.

• Fourth-quarter revenue at Orient Overseas Container Line plunged 49% despite a 7.2% gain over the year before in box transports. (ShippingWatch)

From television boxes stuffed with bricks to phony receipts, returns fraud is becoming a growing problem for retailers. The sector estimates more than $100 billion in merchandise was returned fraudulently in 2023, and the problem has surged at a rapid pace since the pandemic. The WSJ Logistics Report’s Liz Young writes that although fraud has been a longstanding problem with returns, the tactics have grown more daring and are hitting the bottom of lines of retailers in a tough consumer market. The National Retail Federation estimates that bogus returns amounted to about 13.7% of the overall returned goods retailers received last year, up from 5.9% in 2020. Fraudsters are looking to capitalize on policies such as free online returns that retailers rolled out during the pandemic. Experts say some of the returns are even goods that have been shoplifted and then shipped back for store credit or cash.

• Retailer the Container Store lowered its quarterly outlook on falling sales. (Retail Dive)

The center of gravity for automotive exporting has shifted to China. The country’s overseas auto sales surged to a record last year, the WSJ’s Selina Cheng reports, on track to surpass Japan as the world’s biggest car exporter and marking a tectonic shift for the global industry. Although China has become a world leader in electric vehicles, traditional gas-powered autos were the main growth driver, with demand surging especially in Russia. Chinese carmakers seized the void left by the departure of Western carmakers following the war in Ukraine, selling at least five times as many vehicles there last year than in 2022. The China Passenger Car Association estimates some 5.26 million China-made vehicles were sold overseas last year, likely more than a million more than Japan’s exports. The growth has made Chinese manufacturers a growing force in ocean shipping’s automotive sector as automakers like BYD seek overseas buyers.

U.S. imports and exports by value both declined 1.9% in November. (MarketWatch)

Boeing CEO David Calhoun says the company needs to acknowledge its mistake as the aircraft maker reels from a door-plug failure on a 737 MAX 9. (WSJ)

U.S. lawmakers want the Biden administration to act more strongly against China’s growing dominance in making essential chips. (WSJ)

Walmart will expand the use of delivery drones to most of the Dallas-Fort Worth area. (WSJ)

A U.S. report projects solar power will be the leading source of growth for U.S. electricity generation this year and next. (MarketWatch)

Rent the Runway is undertaking another restructuring plan that includes cutting about 10% of its corporate roles. (WSJ)

India is investigating domestic units of global delivery companies including DHL, UPS and FedEx for alleged collusion on rates. (Reuters)

Warehouse operator Flexe is laying off 38% of its staff, its second round of job reductions in four months. (Business Journals)

Medical device maker Medtronic is closing several factories, consolidating distribution centers and dropping about 200 suppliers in a supply chain overhaul. (Medical Design & Outsourcing)

Impact Analytics raised $40 million in funding to back its business providing inventory planning and merchandising software for retailers. (Sourcing Journal)

Gabon is providing ship registry to 18 Sovcomflot tankers as the Russian operator faces Western sanctions. (Lloyd’s List)

Orders for new vessels at Chinese shipyards climbed nearly 64% in the first 11 months of 2023. (Seatrade Maritime)

Workers at German rail operator Deutsche Bahn plan a three-day strike​ that will hit DB Cargo operations. (The Loadstar)

Vehicle-parts supplier Bosch plans to launch a hydrogen-powered engine for heavy-duty trucking. (FleetOwner)

Alabama-based PS Logistics acquired flatbed and dedicated operator Buddy Moore Trucking. (Commercial Carrier Journal)

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 X at @WSJLogistics.