Major shipping operators are moving vessels away from the Red Sea as attacks from Yemen’s Houthi rebels raise growing alarms. A.P. Moller-Maersk and Hapag-Lloyd stopped their ships from entering the crucial waterway after attacks on their vessels, while Mediterranean Shipping and CMA CGM joined a pullback over the weekend that threatens to redraw oceangoing supply chains. The WSJ’s Costas Paris reports that the waterway where the ships were attacked is a key passage to Egypt’s Suez Canal. Some operators are already rerouting around the Cape of Good Hope, adding new costs and delays between Asia and Europe. Orient Overseas Container Line told customers over the weekend it was no longer accepting shipments to or from Israel. Shipping analyst Peter Sand of Xeneta warned of the potential for escalation, writing in a blog post that it is unlikely the Suez Canal will close but “we cannot rule it out completely.”

Companies trying to build China-free supply chains in the rare-earths sector are finding it tough going. China has dominated the powerful technology of making rare-earth magnets that are crucial for goods ranging from jet fighters and wind turbines to smartphones and electric cars. The WSJ’s Jon Emont reports that a diverse array of businesses are stitching together globe-spanning supply chains but are encountering major obstacles. One Canadian company is extracting minerals in the U.S. state of Georgia, but has to ship them to Utah to strip them of radioactive uranium, and then export them to Estonia to be ready for magnets. An Australian company has spent years relocating protected pink-tailed reptiles to unlock a new source of the minerals outside China. The new ventures can’t deliver prices as low as China’s. But the companies say some Western buyers are willing to pay more for magnets largely untouched by China.

Economic activity in the eurozone contracted in December for the seventh month in a row. (WSJ)

Resurgent automotive production pushed U.S. industrial output up 0.2% in November. (MarketWatch)

The Congressional Budget Office projects U.S. consumer inflation will fall to 2.1% in 2024. (MarketWatch)

Costco Wholesale’s same-store sales rose 3.8% last quarter as inventories declined from the year-ago quarter. (WSJ)

Italian distiller Campari is in talks to acquire the owner of Courvoisier cognac for up to $1.32 billion. (WSJ)

The Metropolitan Museum of Art will return sculptures to Cambodia and Thailand that were subject to probes over illegal antiquities trafficking. (WSJ)

Self-driving car company Cruise laid off nearly a quarter of its workforce. (WSJ)

Japanese auto-parts supplier Denso sold its stakes in three Toyota companies, including truck maker Hino Motors. (Nikkei Asia)

Nissan plans to start exporting its electric vehicles developed in China. (Reuters)

U.S. parcel carriers are increasing their fuel surcharges even as energy prices decline. (The Loadstar)

The Panama Canal is easing restrictions on vessel crossings slightly next month. (Bloomberg)

DP World will spend $200 million to expand container handling capacity at Brazil’s Port of Santos. (Seatrade Maritime)

Taiwanese denim apparel supplier Nien Hsing Textile is shutting a factory amid slowing orders from clothing brands. (Sourcing Journal)

General Mills is delaying the opening of a 1.3 million-square-foot distribution center near Rockford, Ill., because of supply-chain issues. (Rockford Register Star)

The logistics arm of Chinese e-commerce seller JD.com is expanding express delivery to North America and Europe. (DC Velocity)

German freight forwarder Instafreight filed for insolvency but says its transport management business will continue operating. (The Loadstar)

Conservation groups are suing BNSF Railway over deaths of grizzly bears in Montana and Idaho. (Great Falls Tribune)

High-end electronics supplier Bang & Olufsen says it can defy a luxury-goods slowdown partly because “the rich will only become richer.” (Financial Times)

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.