Union Pacific couldn’t keep up even with diminished freight volumes last quarter. The railroad says it was caught off guard by the number of workers absent for Covid-related reasons in 2021, the WSJ’s Paul Ziobro reports, which led to sharply fewer on-time trips and other deteriorating operating performance measures. A critical metric of freight car velocity, or the number of miles each car traveled in a day, fell to 197 during the quarter from 223 a year earlier. On-time delivery rates for intermodal trailers fell to 78% from 83% a year ago. For other cargo, it fell to 58% from 74%. That was even though overall revenue carloads fell 4% from a year ago. The big boost in Union Pacific’s 24% gain in net profit came from pricing. Average revenue per car was up 15% over the quarter the year before, including a 20% increase for its intermodal shipments.

Growing e-commerce demand appears to be helping southern timber markets pull out of a yearslong slump. Record lumber prices and high demand for cardboard are starting to lift southern timber prices, the WSJ’s Ryan Dezember reports, raising hopes in a sector that has seen an uneven recovery even as other commodity prices have soared. Saw timber prices have bounced 18% from the 50-year lows of summer 2020, but they remain well below levels of two decades ago. Timberland owners also haven’t gotten the full benefits of hot housing demand because of broader market dynamics. The housing demand is helping, however, and weather-related problems producing lumber in British Columbia are lifting southern yellow pine prices. And demand for cardboard boxes has never been greater, thanks to online commerce growth. One measure shows U.S. production of containerboard, which is used to make shipping boxes, reached a record high in 2021.

Nearly two years into the pandemic, home-furnishings supply chains still haven’t been completely assembled. Shortages and high demand have led to monthslong—sometimes yearlong—delays for new beds, dining room sets, sofas and other furnishings, the WSJ’s Katherine Bindley and Rachel Wolfe write, leaving empty-handed buyers to improvise with bean bag chairs, mattresses on the floor and other college-era stopgaps. The struggles with delivery have continued since the early days of the pandemic, when sudden lockdowns sent demand for desks and other furniture soaring. Delivery times started stretching, and the strains have only grown as strong home sales have led to still greater demand. One merchant, Living Spaces, said it had wanted to again manufacture products in the U.S. and the pandemic’s logistical nightmare accelerated plans. The head of the Home Furnishing Association says the industry’s supply chain is slowly untangling but is still a mess.

U.S. weekly initial unemployment claims rose sharply following historic lows. (WSJ) 

U.S. existing home sales surged to a 15-year high in 2021 despite a 4.6% month-to-month drop in December. (WSJ)

Japan’s exports rose 17.5% last month and shipments to the US increased 22.1%. (MarketWatch)

Fourth-quarter profit at CSX rose 23% to $934 million as strong pricing gains helped offset a 28% increase in expenses. (Dow Jones Newswires)

In­tel plans to build a $20 bil­lion semiconductor plant in Ohio. (WSJ)

Walmart’s top U.S. ecommerce executive Casey Carl is leaving the retailer and senior executive Tom Ward will replace him. (WSJ)

United Airlines is maintaining its cargo-only flights after doubling freight revenue last year to $2.3 billion. (Dow Jones Newswires)

American Airlines’ fourth-quarter revenue reached the highest level of the pandemic and cargo revenue expanded 19.6% over the year-ago quarter. (WSJ)

Peloton Interactive is reportedly pausing production of its connected fitness products. (WSJ)

Toyota and Honda are cutting automotive production in Japan amid a growing Omicron outbreak. (Nikkei Asia)

Containers are piling up at Shenzhen’s Yantian terminal because ship arrivals are delayed by port congestion in the U.S. and Europe. (Bloomberg)

Spot rates for dry-bulk capesize ship charters have fallen 56% since the start of the year to levels below operating costs. (Lloyd’s List)

VesselsValue says container lines ordered 555 new ships last year, four times the number from 2020. (ShippingWatch)

Cosco Shipping is paying year-end bonuses of up to 30 times employees’ monthly salaries as Chinese shipping companies reward workers. (Caixin Global)

Several freight forwarders say more shipping lines are shutting them out of business to focus only on their biggest customers. (The Loadstar)

Tanker and bulk-ship owner Intrepid Shipping is closing operations after selling its last vessel. (TradeWinds)

Amazon is moving into brick-and-mortar fashion retail with the opening of an Amazon Style store in Los Angeles. (CNN)

Walmart is building a 1 million-square-foot e-commerce fulfillment center in Mississippi near Memphis, Tenn. (Supermarket News)

Fruit supplier Limoneira’s drought-hit avocado shipments fell to 3,000 pounds in the fourth quarter from about 487,000 pounds the year before. (Supply Chain Dive)

Paul Page is editor of WSJ Logistics Report. Write to him at paul.page@wsj.com.

Follow the WSJ Logistics Report team: @PaulPage, @jensmithWSJ, and @pdberger. and @LydsOneal. Follow the WSJ Logistics Report on Twitter at @WSJLogistics.