Red Sea disruptions are threatening Europe’s supply chains. The WSJ’s Paul Hannon and William Boston report that attacks by Yemen's Houthi rebels on container ships in the Red Sea have prompted ocean carriers to take the safer but longer and more expensive journey around Africa, raising freight costs and leading retailers to worry about running out of stock. Furniture seller IKEA said the conflict has lengthened its shipping routes by about 10 days or longer. Discount retailer Pepco said it has seen a limited effect on product availability. Businesses learned lessons from the interruptions to supply chains during the pandemic and are holding larger inventories. For now, experts say the interruptions to supply chains are modest compared with the more widespread blockages seen in 2020 and 2021, and their economic impact is likely to be smaller.

• The U.S. military launched a fifth round of strikes on Houthi weaponry in Yemen, targeting antiship missiles aimed at the Red Sea hours. (WSJ)
• A shortage of eggs in Russia highlights how the war in Ukraine has scrambled supply chains. (WSJ)
• Industrial conglomerate ABB says it will be largely spared from the impact of Red Sea attacks because of its localized supply chains. (Bloomberg)

A $40 billion project at the core of Washington’s effort to rebuild U.S. chip manufacturing is facing new delays. Chip maker Taiwan Semiconductor Manufacturing Co. said Thursday it expects to delay production at the second of two semiconductor plants it is building in Arizona. The WSJ’s Yang Jie and Yuka Hayashi report that the delay is evidence of the challenges the world’s leading contract chip manufacturer faces in building its new factories. TSMC, with clients such as Apple and Nvidia, is grappling with a shortage of skilled workers as well as difficult negotiations over how much money the U.S. government will provide under new subsidies for domestic manufacturing in strategic industries. Still, there are positive signs for the project as global demand for chips recovers after slumping last year. Chief Executive C.C. Wei said he anticipates TSMC’s revenue will rise more than 20% in U.S. dollar terms this year.

• TSMC said fourth-quarter net profit fell 19% from a year earlier. (WSJ)
• A surge in demand for generative artificial intelligence technology is expected to boost TSMC’s bottom line this year. (WSJ)

New jobless claims in the U.S. fell in mid-January to a 16-month low. (MarketWatch)

Construction of new homes in the U.S. fell 4.3% in December. (MarketWatch)

The International Energy Agency projects a record-breaking 103.5 million barrels a day in oil production this year. (WSJ)

Trucking giant J.B. Hunt Transport Services said profit fell nearly 24% in the fourth quarter, raising concerns for a struggling sector. (WSJ)

The U.S. government sanctioned Emirati shipping firm Hennesea Holdings for violating the price cap on Russian oil. (WSJ)

India’s Akasa Air has ordered 150 Boeing 737 MAX aircraft. (WSJ)

Macy’s plans to lay off about 13% of its corporate staff and close five stores. (WSJ)

Target named its top finance executive Michael Fiddelke its next chief operating officer. (WSJ)

Amazon logistics executive John Felton is taking over as chief financial officer of Amazon Web Services. (WSJ)

New car sales in Germany plummeted in December, led by a near halving of electric-vehicle sales. (WSJ)

Hyundai Motor and affiliate Kia are emerging as Tesla’s biggest competition in the U.S. electric-vehicle race. (WSJ)

Thailand is scaling back electric-vehicle subsidies as sales surge. (Reuters)

The EU approved a DSV agreement with a state-owned company to build a new city in the Saudi Arabian desert. (ShippingWatch)

Freight brokerages are trimming their payrolls amid a weak shipping market. (The Loadstar)

Canada Post sold its IT services division to Deloitte. (The Globe and Mail)

Residents are pushing back on plans to build a warehouse in Bainbridge, Ga., where up to 30,000 primates would be bred and housed. (Savannah Morning News)

• Tech CEOs are on the prowl, seeing an opportunity to make deals on increasingly good terms.
• Spirit Airlines is exploring options to restructure, following the collapse of the JetBlue deal.
• Companies worldwide are retreating from publicizing green goals, a new report showed.
• The venture fundraising market is in the doldrums, except for one aspect of it—fund sizes.

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.