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Logistics operators are starting to see signs of a freight rebound after a nearly two-year-long slump. Ocean imports into the U.S. are rising, intermodal rail volumes are picking up and some truckers are getting small but certain signals that demand is strengthening to start the year. The WSJ Logistics Report’s Paul Berger and Liz Young write that the upturn to start the year marks a shift for freight companies that have struggled since retailers abruptly reined back their restocking efforts and sent shipping markets tumbling. That destocking has run its course, and it looks like supply chains are filling up again. The Logistics Managers’ Index surged last month, and several reports suggest that transportation prices are rising. The Lunar New Year may be helping drive the demand, but signs of gathering strength in the broader American economy suggest that more goods may be in logistics pipelines.

• XPO swung to a $58 million fourth-quarter profit, boosted by expanding less-than-truckload tonnage and revenue. (Dow Jones Newswires)
• Uber Freight’s loss deepened in the fourth quarter as revenue at the freight broker fell 17% to $1.28 billion. (Dow Jones Newswires)

The U.S. trade deficit with China fell last year to its lowest level in over a decade, but that doesn’t mean the country has kicked the Chinese import habit. Chinese and Western manufacturers have found numerous ways around tariffs that have helped reshape trade flows, and the WSJ’s Greg Ip writes in a Capital Account column that they are likely to redouble those efforts if the levies go still higher. The overall U.S. trade deficit in goods shrank last year, mostly through a sharply reduced gap with China. One driver is that U.S. importers may have overordered in 2022, leading to swollen inventories and less imports in 2023. More fundamentally, the shrinking trade deficit overstates how much the U.S. has reduced its consumption of Chinese-made products. Imports from Vietnam and Mexico have surged, but much of the value of those goods consisted of inputs originally sourced in China.

• The U.S. bought more goods from Mexico than China in 2023 for the first time in 20 years. (New York Times)

U.S. imports by value fell 1.3% in December while exports jumped 1.2%. (MarketWatch)

Germany’s industrial production declined in December for the seventh straight month. (WSJ)

A.P. Moller-Maersk warned that continued uncertainty in the Red Sea could push the shipping line to a loss this year. (WSJ)

China is encouraging its electric vehicle makers to expand overseas efforts, including collaboration with shipping companies to integrate warehousing and logistics resources. (WSJ)

Sales at Alibaba’s core digital retail and online commerce businesses grew 2% in the December quarter. (WSJ)

Forward Air CEO Tom Schmitt left the company following the expedited trucker’s acquisition of freight forwarder Omni Logistics. (Dow Jones Newswires)

CVS Health cut its earnings outlook after medical cost increases offset rising fourth-quarter revenues. (WSJ)

Top rice supplier India is considering extending an export tax on varieties of the grain in a tight global market. (Bloomberg)

South Korea’s LG Chem struck an $18.6 billion, 10-year deal to supply electric vehicle battery materials to General Motors. (Nikkei Asia)

Amazon is taking new steps to protect its delivery drivers from acts of violence. (The Information)

Greek ship owners are withdrawing rapidly from Russia oil trades amid tighter sanctions enforcement. (Lloyd’s List)

Stolt-Nielsen is positioned to attempt a merger with rival chemical tanker operator Odfjell after boosting its stake in the business. (ShippingWatch)

Rite Aid is closing a large distribution center in Woodland, Calif., and consolidating operations at another site. (Business Journals)

Supply chain visibility startup Sensos raised $20 million in a Series A funding round. (Axios)

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.