Today's newsletter was written by Liz Young.

Microfulfillment distribution tactics are going through a potentially big shift. Fabric, which operates small, automated distribution centers in densely-populated areas, is cutting its workforce and shifting its business strategy as grocers and retailers look instead to add automated operations inside stores. The WSJ Logistics Report’s Liz Young writes the company will now sell its warehouse automation platform rather than build more specialized small distribution sites. The push toward microfulfillment centers accelerated during the pandemic as online retail sales demand grew and companies looked for ways to deliver goods to customers faster. Fabric’s pivot suggests the business is ebbing as merchants hone their ability to use their stores to fill online orders. The shift makes the niche logistics business the latest to gain traction during the Covid-19 pandemic but lose momentum as consumers have resumed pre-pandemic buying habits.

Rising interest rates are cutting into one of the pandemic’s hottest commodities. Lumber prices have fallen to their lowest level in more than two years, the WSJ’s Ryan Dezember reports, bringing two-by-fours back to what they cost before a pandemic building boom and pointing to a sharp slowdown in construction. Lumber futures are down about one-third from a year ago and more than 70% from their peak in March, when the Federal Reserve began raising interest rates. The result illustrates how changes in various parts of the economy can ripple through supply chains down to the level of raw materials. The U.S. housing market has been sagging, with building permits for residential construction declining steadily since March. Rail shipments of lumber are dropping, too, with forest-products carloads down 13% last week compared with the same week a year earlier, according to the Association of American Railroads.

Chip maker Qualcomm is looking at a new road for revenue. The San Diego-based company has been pushing to diversify its business by selling chips for cars and internet-connected devices, the WSJ’s Mark Maurer reports, positioning itself to capture more of a growing market amid declining demand for smartphones. Qualcomm’s moves are a sign of how the growing role of technology in the automotive sector is bringing electronics heavyweights into the car business. Qualcomm got some $1.3 billion in auto revenue in its most recent fiscal year, up 33% from the prior year, but that still makes up a slim portion of the company’s overall revenue. The company doubled down on the sector this spring by acquiring Swedish auto-technology company Veoneer for $4.5 billion. Qualcomm works with auto makers General Motors and Stellantis and suppliers LG Electronics and Continental.

New orders for durable goods in the U.S. declined 0.2% in August. (WSJ)

The World Bank expects developing economies in East Asia to grow faster than China this year. (WSJ) 

The U.S. and European Union are expected to adopt new sanctions on Russia. (WSJ)

Authorities discovered unexplained leaks near two closed Russian natural-gas pipelines to Germany and ships are being warned away from the area. (WSJ)

Port Tampa Bay closed its waterways and airports in the region shut down as Hurricane Ian approached. (WSJ)

Car-rental company Hertz and energy firm BP plan to build and manage a network of electric-vehicle charging stations. (WSJ)

The U.S. expects to complete rules on tax breaks for electric-vehicle purchases by the end of the year. (WSJ)

Auto maker Volkswagen is searching for ways to help its European suppliers counter a natural-gas shortage. (Bloomberg)

Dockworkers at the U.K.’s Port of Felixstowe went on strike for the second time in two months. (BBC)

Japanese trading house Mitsubishi is considering launching one of the world's largest ammonia production facilities in Texas. (Nikkei Asia)

Singapore-based airport SATS is acquiring Worldwide Flight Services in a $1.1 billion deal to create the world's biggest global air cargo handler. (Reuters)

Rates for very large crude carriers have pushed close to the highest levels on record. (TradeWinds)

A consortium of buyers boosted its offer to take container ship and mobile power company Atlas private. (MarketWatch)

Jacksonville, Fla.-based Patriot Rail is acquiring Louisiana’s Delta Southern Railroad. (Trains)

Snack-food maker Hostess Brands named former Kimberly-Clark executive Adrian Poretti chief supply-chain officer. (Supply Chain Dive)

Walmart plans to hire 1,500 truck drivers this holiday season. (Transport Dive)

Amazon unveiled a robot that can operate similarly to a human hand and could handle more than 1,000 items an hour. (Vox)

Kenya exported its first shipment of car batteries to Ghana. (AllAfrica)

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.