Red Sea shipping attacks are raising the specter of inflation in Europe. Factories across the continent are reporting longer delivery times for parts as ocean carriers sail around the tip of Africa to avoid attacks from Houthi rebels in Yemen. The WSJ’s Paul Hannon writes that if the detours continue and manufacturing costs keep rising it could fuel inflation and stall interest-rate cuts that eurozone companies were hoping for this year. A measure of supply times reported by eurozone businesses fell to 48.6 in January from 53.2 in December, according to S&P Global. A reading below 50 indicates waiting times are getting longer. The January reading is the first increase in delivery times in more than a year and there are few signs the crisis on a key trade corridor between Asia and Europe will end anytime soon.

• Iran is sending increasingly sophisticated weapons to its Houthi allies. (WSJ)
• Maersk Line is suspending Red Sea operations for its U.S.-flagged vessels after two ships under naval escort were attacked. (Lloyd’s List)
• China’s envoy to the European Union says U.S. and U.K. attacks on Houthi rebels are exacerbating the crisis in the Red Sea. (Bloomberg)
• India is deploying warships to counter rebel attacks while steering clear of joining the U.S.-led force in the Red Sea. (WSJ) 

The 155mm shell is the most requested artillery munition of the war in Ukraine. And now Israel needs it as well for its war in Gaza. A WSJ video explains why it is so popular and whether the U.S. and other global arms suppliers can cope with the demand.

S&P surveys show activity in the U.S. service and manufacturing sectors has accelerated so far this year. (MarketWatch)

China’s central bank announced steps to boost lending to households and businesses, part of a campaign to prop up growth this year. (WSJ)

The Bank of Canada kept its main interest rate unchanged at 5%. (WSJ)

Knight-Swift Transportation reported a loss of $10.7 million for the fourth quarter. (Dow Jones Newswires)

Tesla warned of slower growth in 2024 as income from operations in the fourth quarter fell 47%. (WSJ)

EBay is laying off about 9% of its full-time workers. (WSJ)

A Canadian court ruled the country’s use of emergency powers to end a trucking protest against Covid vaccine mandates was unconstitutional. (WSJ)

The CEO of United Airlines is rethinking a multibillion-dollar order for new planes from Boeing. (Financial Times)

Rail car provider GATX issued upbeat earnings guidance after strong profit growth in the fourth quarter. (Dow Jones Newswires)

Revenue at truckload carrier Covenant Logistics declined 7.4% in the most recent quarter from a year earlier to $273.9 million. (Yahoo Finance)

Fleet monitoring company Samsara is suing Motive Technologies over claims of patent infringement. (Transport Topics)

Ryder opened a 1 million-square-foot fulfillment center in Jeffersonville, Indiana, for technology maker Lexmark. (Trucking Dive)

Walmart and Wayfair are among companies recalling hundreds of thousands of beds that can break, sag or collapse. (CBS News)

A woman was arrested for allegedly stealing a shopping cart full of Stanley cups worth nearly $2,500. (New York Post)

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.