Target is undertaking a rapid reset of its supply chain after concluding that its inventories are overstuffed and out of step with consumer buying trends. The retailer is canceling orders and preparing to start discounting to clear out goods, the WSJ’s Sarah Nassauer reports, in a stark sign of the growing mismatch between supply and demand in America’s stores. Target’s inventory was up by 43% in the April quarter as demand for some categories declined faster than expected and supply-chain snarls delayed other goods past their ideal selling window. That’s dragging on the company’s finances: Target is now warning its profit would drop as it absorbs higher expenses from overhauling inventories to better align its goods for later in the year. The warning from the big-box bellwether is roiling the retail sector, following reports from Macy’s, Gap and others that they are also overstocked.

A steep drop in U.S. inbound trade flows may signal a significant shift in the American economy. Overall imports by value fell 3.4% from March to April, including a 4.4% slide in goods imports, the WSJ’s Yuka Hayashi reports, as domestic demand for foreign products moderated and imports of finished metal, computers, clothing, household goods, toys and pharmaceuticals all waned. The decline represents a sharp turn from the trend of previous months when businesses added inventories at a brisk pace. Now, American consumers are shifting their spending from clothing and electronics to services like travel and dining, and retailers say they are awash in excess inventories. Experts say that means import growth will likely continue to slow, which would mean lighter volumes for freight operators but also relief for congested supply chains. It could also help the U.S. economy if services spending can offset those slimming goods purchases.

The big growth in supply-chain visibility tools is taking a turn for the small. Technology startup Wiliot plans to deploy thousands of tiny tracking devices in agriculture shipments in Israel, the WSJ Logistics Report’s Liz Young writes, and has hopes for a broader rollout tracking products ranging from apparel to pharmaceuticals. The Israel-based company has a new agreement with Israeli supermarket chain Shufersal to use its tags the size of a postage stamp to track produce from farms to stores. The company says the devices are small and cheap enough to solve a gray area in supply chains for commodity shipments, and Wiliot says it’s looking at potential uses at the level of individual items. The operation is joining a busy trend in logistics tech, with companies investing more in visibility to get ahead of potential logjams and disruptions in supply chains.

The World Bank slashed its growth forecast for the global economy for this year to 2.9%, down from its forecast of 4.1% growth in January. (WSJ)

Private-equity firm Atlas Holdings is acquiring chicken supplier Foster Farms. (WSJ)

The head of commodities trader Trafigura says oil markets could reach a “parabolic state” this year with prices surging to record highs. (Financial Times)

Pfizer, AstraZeneca and Takeda Pharmaceutical and other big drug companies plan to jointly assess the greenhouse gas emissions of their suppliers. (Nikkei Asia)

South Korea’s unionized truckers began a nationwide strike as part of a call for higher freight rates. (Korea Herald)

Firefighters brought a deadly blaze at a Bangladesh container yard under control after three days. (Hindustan Times)

Congestion at the Port of Shanghai has returned to levels close to normal. (Splash 247)

Russia says it can use state guarantees to make up for a European bar​ against insurance for Russian crude cargoes. (Lloyd’s List)

Canada’s CDPQ pension fund is forming a joint venture to invest up to $5 billion in DP World’s Jebel Ali Port in Dubai. (Maritime Executive)

Steel manufacturer Nucor is forming a business unit focused on serving the utility, transportation and telecommunication sectors. (Dow Jones Newswires)

Freight forwarder Kuehne + Nagel agreed to sell its Russian business to local management. (ShippingWatch)

Boeing’s delivery of another 747-8 freighter to Atlas Air takes the plane maker’s backlog down to three of the jets. (FlightGlobal)

Transport equipment maker Fruehauf resumed production of truck trailers in the U.S. after halting the work 25 years ago. (Fleet Owner)

Uber Freight and Waymo struck an agreement aimed at driving shipments to trucks using the Alphabet unit’s autonomous-vehicle technology. (Transport Dive)

U.S. stores have a shortage of tampons because of rising raw materials and shipping costs. (Time)

KFC’s Australia shops are serving their meals with cabbage because of a lettuce shortage in the country. (BBC)

Paul Page is editor of WSJ Logistics Report. Write to 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.