FedEx’s revenue growth is coming at a higher cost. The delivery giant’s overall revenue rose 14% in the fiscal second quarter ending Nov. 30, but operating expenses rose even faster, the WSJ’s Paul Ziobro reports, as higher wages, added costs for outside transportation procurement and other inefficiencies ate into profit margins. The revenue growth came largely on pricing strength. Average daily package volume in the express business fell 6% from a year ago but revenue per package in that segment was 11% ahead of last year’s yield. The margins at the ground unit at the heart of e-commerce business fell, however, and operating income there contracted 13% despite a 13% increase in revenue. FedEx upgraded its outlook for the full fiscal year, however, suggesting the company believes ongoing strong demand and pricing will deliver better returns during the current critical peak holiday quarter.

Rivian Automotive is turning its heavy financial backing into bigger production capability. The electric-vehicle startup plans to start construction next year on a second U.S. manufacturing facility in Georgia, the WSJ’s Ben Foldy reports, in a $5 billion manufacturing investment that amounts to a hefty bet on its ability to increase sales. The upstart auto manufacturer says the factory will have an annual capacity of 400,000 vehicles and will start production in 2024. That’s a big step for a company that just started producing electric pickup trucks at its Illinois plant in September. But the company in its first quarterly earnings report since its IPO last month says it had $5.2 billion in cash on hand, up from $3.6 billion a year earlier. It plans to release two more models this year: an SUV and a delivery van built for Amazon, which owns an 18% stake in Rivian.

The shopping district for online marketplaces is getting crowded. The list of retailers, apparel sellers and even grocery chains operating digital channels for third-party sellers is expanding, the WSJ’s Jinjoo Lee writes in a Heard on the Street column, as companies jump on a bandwagon that offers higher sales revenue without the cost of inventory. The marketplaces allow third-party sellers to list, sell and ship items on an established retailer’s site. Amazon was the pioneer in the strategy, and lately department stores Macy’s and Hudson’s Bay, grocery chain Kroger and clothing seller J.Crew have created or are launching marketplaces. The efforts can generate meaningful revenue, but they carry risks. A poor shipping experience can sour customer perceptions of a retailer. They can also trigger confusion over returns logistics if shoppers can’t return unwanted purchases to the owner of the digital sales channel.

Measures of economic activity in the U.S. and Europe fell back this month. (WSJ)

The four-week moving average for new U.S. unemployment claims fell to the lowest level since 1969. (WSJ)

Kellogg reached a tentative agreement on a five-year contract with striking workers at four plants. (WSJ)

Airbus won deals from longtime Boeing customers KLM and Qantas for scores of single-aisle passenger jets. (WSJ)

The average cost of handling returns for retailers this holiday season will rise 7% over last year. (CNBC)

Revenue for the U.S. wholesale sector is on track to grow 21% this year to more than $7 trillion. (Modern Distribution Management)

Costco Wholesale will continue to order early from its suppliers to mitigate product shortages. (Dow Jones Newswires)

Walmart is placing fulfillment centers of around 1 million square feet each in Salt Lake City and Lebanon, Tenn., to serve online orders. (DC Velocity)

Southeast Asian food-delivery company Grab is moving into physical sales with the acquisition of Malaysian high-end supermarket chain Jaya Grocer. (Nikkei Asia)

U.K. online fashion retailer Boohoo lowered its outlook for the second time this year on growing returns and rising freight rates. (Financial Times)

DHL Supply Chain will integrate self-driving trucks developer TuSimple’s autonomous vehicle technology into operations. (TechCrunch)

Self-driving truck company Aurora Innovation will test its technology under a pilot program with Uber Freight. (Reuters)

Electric parcel van manufacturer Cenntro Automotive will build a manufacturing facility close to Florida’s Port of Jacksonville. (Jacksonville Daily Record)

Maersk Line will manage ocean and airfreight transport for consumer-goods supplier Unilever under a logistics agreement for the shipping line. (The Loadstar)

Dry-bulk vessel operator Navios swung to a $60 million net profit in the third quarter as revenue jumped by a third. (Lloyd’s List)

International Container Terminal Services will spend $230 million to expand capacity at Mexico’s Manzanillo port. (Port Technology)

DP World is building the Democratic Republic of the Congo’s first deep sea port. (Splash 247)

Industrial distributor Genuine Parts is acquiring Kaman Distribution Group for $1.3 billion. (Industrial Distribution)

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

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