A shipping demand downturn is reaching into the U.S. parcel sector. United Parcel Service cut its financial outlook for the year as a slowdown in global delivery volumes and the fallout from a new labor contract weigh on the business. The WSJ’s Esther Fung reports the package giant is now focused on cost-cutting, including reducing working hours, grounding flights and pushing more of its parcels through automated sorting centers. UPS follows Maersk Line in targeting cost reductions at a time of year usually focused on expanding operations. The package carrier took an extra hit last quarter from its contract talks with the Teamsters union, which UPS says resulted in $1 billion in lost revenue because customers diverted shipments to FedEx and other rivals. Average daily domestic package volume fell 9.9% in the quarter. UPS is trying to win those shippers back, but it’s trying to regain business in a slumping market.

Wind-power supply chains are in the doldrums. Developers and would-be buyers of wind power are scrapping contracts, putting off projects and postponing investment decisions. The WSJ’s Mari Novik and Jennifer Hiller report that the setbacks at onshore and offshore projects follow months of warnings about rising materials prices and logistics hiccups. At least 10 offshore projects in the U.S. and Europe totaling around $33 billion in planned spending have been delayed or otherwise affected. The holdups likely push 2030 offshore wind targets out of reach for the Biden administration and European governments. The technology is considered vital in the energy transition toward cleaner electricity supplies and away from fossil fuels. A long supply chain has been forming to serve those projects and the delays now are buffeting those businesses. Blade supplier TPI Composites issued a profit warning last month that it was seeing higher inspection and repair costs.

• Electric-vehicle maker Rivian Automotive cut its net loss as production accelerated and revenue tripled to about $1.1 billion. (WSJ)
• EV parts supplier and bus maker Proterra filed for chapter 11 bankruptcy protection. (WSJ)
• An analysis shows Tesla relies on Chinese suppliers for nearly 40% of the materials in its EV batteries. (Nikkei Asia)

Shortages of crucial drugs in the U.S. are triggering changes in pharmaceutical supply chains. Pharmacies are turning to outsourcing drug manufacturers known as compounders, raising the profile of a sector that produces customized, bulk versions of medications. The WSJ’s Jared S. Hopkins and Liz Essley Whyte report the compounders are filling more demand for pain medications, respiratory treatments and anesthetics as providers struggle to get goods to customers. The demand is turning bulk compounding into an attractive business. More drug manufacturers are expanding into the market and existing compounding businesses are drawing investments from private equity, venture capital and hospitals. They work based on speed and nimble operations. Because they can make copies of existing drugs without regulatory approval once a shortage has been declared, they can deliver drugs to hospitals in a matter of weeks or months, rather than the years often needed under normal circumstances.

U.S. imports by value fell 1% in June in the third straight sequential decline. (MarketWatch)

Taiwan Semiconductor Manufacturing Co. will build its first European chip factory with support from the German government. (WSJ)

Campbell Soup is buying food supplier Sovos Brands in a deal valued at about $2.7 billion. (WSJ)

AB InBev is selling eight of its beer and beverage brands to cannabis company Tilray Brands. (WSJ)

A fashion-industry survey showed 61% of buyers no longer use China as their top supplier. (Sourcing Journal)

Vessel delays at the Panama Canal have grown to 15 to 19 days as ships cope with drought restrictions on transits. (Splash 247)

Container lines are starting to impose surcharges on Panama Canal voyages because of the low-water restrictions. (The Loadstar)

Ship recycling markets are tanking as fewer oil carriers are being sold for scrap. (Lloyd’s List)

Commodities carrier EuroDry fell to a $1.2 million quarterly loss on sliding dry-bulk demand. (TradeWinds)

Spot and contract trucking rates in Europe are tumbling on sagging freight demand. (Motor Transport)

Consolidated Chassis Management launched a pool of 50,000 trailers for port truckers in the South Atlantic region. (DC Velocity)

Intermodal marketing company Hub Group says it has a “strong pipeline of acquisition opportunities.”(Transport Dive)

Industrial parts supplier Fastenal’s sales rose 4% in July as manufacturing demand offset declining non-residential construction sales. (Industrial Distribution)

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 Twitter at @WSJLogistics.