The waters leading to the Red Sea are becoming increasingly treacherous for commercial shipping. Yemen’s Houthi forces have attacked several vessels crossing through the Bab el-Mandeb strait in recent days, creating a new front in the battle between Israel and Hamas and complicating efforts by the U.S. and its allies to secure the critical shipping lane. The WSJ’s Benoit Faucon and Costas Paris report that Houthi rebels claimed responsibility for a strike on a Norwegian tanker off Yemen’s coast, as the Iranian ally escalates attacks to disrupt the flow of cargoes in response to fighting in Gaza. The elevated risk of moving cargoes through the region is raising shipping costs and prompting some nations to rethink security measures to allow safe passage. Some container lines have diverted ships away from the region and Maersk Line is adding an emergency risk surcharge to cover skyrocketing insurance costs.

Two of the world’s largest commodity carriers expect big value in bulking up together. Star Bulk Carriers and Eagle Bulk Shipping are merging in an all-stock deal that would create the world’s fourth-biggest dry bulk ocean carrier. The WSJ’s Costas Paris reports that Athens, Greece-based Star Bulk will take the lead, with its shareholders holding 71% of the combined business under a deal that values the merged company at roughly $2.1 billion. The company will have a fleet of 169 bulk vessels that carry iron ore, coal and other crucial feedstock for the industrial economy. The sector has been on a roller-coaster lately as dimming trade demand has hurt freight rates and earnings. But China has accelerated imports of commodities, pushing daily freight rates of the largest dry bulkers to more than $40,000 from $10,000 at the start of the year, raising hopes for a 2024 rebound.

Ryan Petersen has been on the front lines of the freight sector’s digital drive since launching Flexport in 2013. A downturn in shipping demand this year has sent many logistics providers reeling, and has put a spotlight on the stable of startups that pushed into the freight business with high ambitions but now face tough questions from investors. Petersen spoke with the WSJ Logistics Report’s Liz Young about the challenges the company faces and the limits of what technology can provide. “A tech-only layer on top of the current logistics industry just doesn’t work,” he said. You can listen to the full podcast here, and read a partial transcript of the discussion here.

Governments at the United Nations climate conference approved an agreement calling for the world to transition away from fossil fuels. (WSJ)

Consumer inflation in the U.S. cooled slightly last month to a 3.1% annual rate. (WSJ)

British oil giant BP asked U.S. energy regulators to intervene in an escalating dispute with a startup U.S. natural-gas exporter. (WSJ)

European apparel retailers are trying out second-hand sales in a bid to capitalize on more sustainability-minded consumers. (WSJ)

Volkswagen is hiring nearly 3,000 engineers in China as it scales up its investment in the country’s automotive market. (New York Times)

Mercedes-Benz is delivering battery-electric trucks to various logistics providers for use in the car maker’s inbound logistics at a plant in Germany. (Automotive Logistics)

Ford will cut planned production of its all-electric F-150 Lightning pickup roughly in half next year. (CNBC)

The European Union is prescribing stockpiling and other measures to prevent shortages of critical medicines. (Financial Times)

Boeing is near its revised annual target for 737 passenger jet production after accelerating deliveries in November. (Bloomberg)

Container lines are looking to resume chartering vessels amid signs of stronger freight demand on the horizon. (The Loadstar)

Germany’s Hapag-Lloyd is studying wind-assisted propulsion for smaller containerships. (Seatrade Maritime)

Trigon Pacific is carving out part of its coal facilities at Canada’s Port of Prince Rupert to create a liquefied petroleum gas export terminal. (Progressive Railroading)

Target says shoppers delaying their purchases are boosting same-day delivery orders this year. (Inc.)

Men’s apparel retailer DXL is shifting much of its sourcing from China and the rest of Asia to the Western Hemisphere. (Supply Chain Dive)

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.