In the Precision Software News Round-Up: 8 June 2018, the US and UK will not hold talks during the G7, Mexico imposes tariffs on US goods, ZTE agrees to pay an extra $1.4 billion for compliance violations and in the Precision Report we look at opportunities and threats for the 3PL market.

Global Trade

No G7 Talks Between Donald Trump and “School Mistress” Theresa May

US President Donald Trump and UK Prime Minister Theresa May will not hold formal talks at the G7 summit. White House insiders report that May’s “school mistress” tone, her demands and her public rebukes irk the US leader. President Trump is likely to get a frosty reception at the G7. Steel and aluminium tariffs placed on Canada, Mexico and the European Union and the US withdrawal from the Iran nuclear deal have angered America’s long-time allies. US/UK relations may improve after President Trump visits Britain on 13 July. A round of golf as well as tea with the Queen are likely to be on the agenda. For more on this, please see The Telegraph.

Mexico Responds With $3 Billion Worth of Tariffs on US Pork, Steel and Cheese

On Tuesday, Mexico launched a salvo at the United States in the tit-for-tat tariff war. Mexico responded to US steel and aluminum tariffs by imposing $3 billion in tariffs of its own on US pork, steel, cheese and other products.The move is likely to create further difficulties reworking the North American Free Trade Agreement. NAFTA talks have been querulous and slow-moving, and US officials have suggested working on separate agreements with Mexico and Canada. Mexico’s response will hit parts of the US represented by high-profile Republicans, such as Vice President Mike Pence, as well as farmers. For more details, please see The New York Times.

Logistics

FTA Accuses UK Government of Brexit Incompetence

The UK’s Freight Transport Association has accused Theresa May’s government of “playing chicken with crucial parts of the British economy.” Earlier this year, FTA listed eight demands to enable the UK to keep trading after Brexit, and stated that the government has made no progress on these essentials. Without resolution, goods leaving and entering the UK could experience severe border delays at Dover and Calais. Furthermore, supply chains will be disrupted and consumers may face empty shelves.

FTA deputy chief executive James Hookham claimed that there is nowhere to check goods at UK ports and no system in place to do this. There are also questions regarding the status of the 13 percent foreign driver workforce and whether the EU will recognize UK driver qualifications. More worryingly, there are as yet just 103 international haulage permits available to cover the 300,000 journeys made by UK trucks to Europe annually.

“Logistics businesses simply cannot answer their customers’ questions about how they will move goods after Brexit. Manufacturers and retailers are losing faith and fear that post-Brexit Britain is at real risk of becoming nothing more than a series of road blocks at our ports and airports,” said Mr Hookham. You can read the full report on The Loadstar.

Compliance

ZTE To Pay Extra $1.4 Billion in Penalties

ZTE, the Chinese telecommunications group, has agreed to pay an additional penalty of $1 billion and place $400 million in escrow before the US Commerce Department’s Bureau of Industry and Security (BIS) will remove the company from their Denied Persons List. This is in addition to the $892 million in penalties ZTE has already paid to the US government.

ZTE will have to retain a team of special compliance coordinators. BIS will select the coordinators and they will report to the Bureau for 10 years. Furthermore, ZTE must replace the company’s entire board of directors and senior leadership. Once ZTE meets these conditions, BIS will suspend the company’s denial order for 10 years. ZTE’s first settlement agreement with US authorities set a record for civil and criminal penalties in an export control case. However, the new agreement exceeds this and sets yet another record. ZTE’s penalties total $2.29 billion. For more information on this, see Global Trade Magazine.

Parcel Deliveries and Carriers

DPD Reduces Carbon Footprint

DPD has reduced active carbon emissions by 1.6 percent since 2016 and 11.2 percent compared to 2013. In a statement, DPDgroup said that they had achieved the reduction by using alternative fuel vehicles, fuel-efficient driving, optimizing routes and maximizing load capacity. The company also uses cargo bikes and inner-city micro depots in Germany. DPD plans to increase the use of low or no carbon transport across European cities to reduce pollution and congestion. To read more, please click here.

The Precision Report

Retailers Demand Added Value From Logistics: Software Solutions For 3PLs

With retail e-commerce a seemingly unstoppable trend, increased parcel volumes and an uptick in emerging markets, the third party logistics market has the potential to grow significantly over the next few years. However, there are also significant challenges that 3PLs cannot ignore. These include the high demand for logistics space, worker shortages, rising transportation costs, and the increasing self-reliance of omni-channel retailers. In the latest Precision Report we look at the opportunities and threats for the market as well as software solutions for 3PLs. You can read the full report here.