Union Pacific Corp. is joining the freight railroad drive to improve performance by slimming down. The carrier plans to lay off about 500 employees before the end of the year, the WSJ’s Paul Ziobro reports, in the first of several rounds of job cuts as the railroad implements a new operating plan. The new actions include running fewer trains but operating them on set schedules to keep its network flowing more smoothly, making Union Pacific the latest operator to follow a playbook set by the late Hunter Harrison. CSX Corp. rode that precision-railroading strategy to sharply improved profitability in the third quarter. Union Pacific, which reports its results on Thursday, has struggled with congestion and service problems that have depressed earnings this year. What the railroad calls its new efficiency will include a 30% reduction in general and administrative staff by 2020.

The seasonal shipping wars have started. Target Corp. will offer free two-day shipping on online orders this holiday season, the WSJ’s Khadeeja Safdar reports, undercutting competitors like Amazon.com Inc. and Walmart Inc. that have requirements for similar services. The action sets up a new holiday battle among retailers over who can deliver the fastest and the cheapest, highlighting how competition for sales has increasingly moved into logistics operations. Target performed poorly last year but has been converting its stores into distribution hubs, making the retailer a showcase for an increasingly popular multi-channel retail fulfillment strategy. The company now fulfills about 50% of its digital orders at its stores and plans to fulfill over 90% of two-day orders from the stores. Walmart is taking its own fulfillment steps by expanding two-day shipping and in-store returns to many items sold by third party sellers on its website. 

Higher costs are racing through U.S. industrial operations and manufacturers are trying to pass them through their supply chains as fast as they can. Caterpillar Inc., 3M Co. and other industrial bellwethers are pointing to higher freight and commodities spending in their latest earnings, the WSJ’s Austen Hufford and Doug Cameron report, and several companies say higher tariffs on imported goods are making production more expensive. The growing risk from trade tensions raises new concerns for the manufacturers, and several report slowing sales in China as barriers to shipments grow and the country’s economy cools. Transportation remains a headwind: Some manufacturers say difficulty in getting trucks rising oil prices are pushing up their transport costs. Others are having trouble finding parts they need to raise production. Heavy-duty truck maker Paccar Inc. says it is still coping with parts shortages in North America.

Higher international postal prices are getting the express delivery treatment. The Universal Postal Union is fast-tracking a rate review following President Trump’s threat to pull out of the body, and the head of the United Nations agency that oversees the global mail system tells the WSJ’s Heidi Vogt it could institute changes as early as April. The Trump administration last week started the yearlong process to withdraw from the UPU because of discounts that make it cheaper to ship small packages from China to the U.S. than from domestic locations. Businesses are bracing for what could be a significant impact on e-commerce. Any action could hit the express parcel business first, however. Deutsche Post DHL, United Parcel Service Inc. and FedEx Corp. compete for international packages and a postal price increase could put the private carriers on a fast track to raise their own rates.

U.S. food supply chains are coming under heightened scrutiny. More than a dozen companies have recalled millions of pounds of potentially contaminated food in recent days, raising new concerns about the safety of goods from a range of suppliers. The WSJ’s Jesse Newman reports companies are grappling with costly recalls and an increase in multistate outbreaks of foodborne illness this year, partly because of advances in pathogen detection. New rules also require U.S. farmers and food processors to do more to prevent foodborne illness. Many of the concerns appear to have arisen early in production, even going back to farms. In one case, food manufacturers across the country are recalling nearly 4 million pounds of food shipped to grocery stores and distributors nationwide after a Canadian supplier recalled vegetables used as ingredients. Still, regulators say no illnesses have been tied to the foods.

The eurozone economy’s slowdown steepened in October amid weakening demand for the currency area’s exports. (WSJ)

United Technologies Corp.’s third-quarter profit fell 7% as higher costs offset a 10% increase in revenue. (WSJ)

McDonald’s Corp. eked out higher third-quarter sales by raising prices. (WSJ)

Johnson & Johnson is buying the remaining shares of Japanese cosmetics and skin care company Ci:z Holdings Co. (WSJ)

Gucci posted its weakest quarter of sales growth in nearly two years. (WSJ)

A proposal to soften the rollout of a 2020 sulfur cap on shipping with an “experience building” phase is gaining traction at a meeting of maritime regulators. (Lloyd’s List)

President Trump signed a bipartisan water infrastructure bill that authorizes major spending on waterways and related projects. (CNN)

The U.K. is drawing up plans to charter ships to bring in “critical supplies” in the event of a no-deal Brexit next March. (Financial Times)

Canada Post unionized workers started rotating strikes in several cities in a dispute over the handling of growing parcel shipments. (Toronto Star)

Ford Motor Co. will test self-driving cars in Washington, D.C. (TechCrunch)

Consumers in a Deloitte survey care more about free shipping than speedy delivery. (USA Today)

Amazon is opening a distribution center in the New York City borough of Queens in a former Bulova watch headquarters. (Astoria Post)

UberEats expects to reach 70% of the U.S. population by the end of the year. (Associated Press)

U.S. apparel and footwear firms signed onto an agreement against use of forced labor in supply chains. (Sourcing Journal)

Apparel retailer Hennes & Mauritz AB is investing in British online business Thread. (Business of Fashion)

Panjiva says U.S. waterborne imports rose 7.3% in September from a year ago. (Modern Materials Handling)

Third-quarter revenue at Finnish manufacturer Wartsila soared 55% on orders for ship-engine scrubbers to reduce sulfur emissions. (Seatrade Maritime)

European regulators approved the CMA CGM SA acquisition of Finnish regional operator Containerships. (TradeWinds)

Ship finance company Blue Ocean Maritime postponed its initial public offering in London. (Splash 247)

Global container volumes at port terminal operator DP World slipped 0.5% in the third quarter. (Gulf News)

The Port of Oakland’s Trapac container terminal will start a night shift to ease truck congestion. (American Shipper)

Imperial Logistics will operate a new 430,500-square-foot terminal for Volkswagen AG in Wilhelmshaven, Germany. (Lloyd’s Loading List)

Alliant Energy Transportation is buying Iowa-based freight business Hybrid Transit Systems. (The Gazette)

Oklahoma police found 1,262 pounds of liquid methamphetamine hidden in a tractor-trailer’s diesel tank. (KFOR)

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

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