In the Precision Software News Round-Up: 26 October 2018, the EU and Singapore sign a free trade agreement; post-Brexit Dover-Calais chaos expected; Boeing says air cargo will double in 20 years and more. Plus in the Precision Report we look at Halloween nightmares for importers and exporters.
BOEING EXPECTS AIR CARGO TO DOUBLE IN 20 YEARS
This week Boeing posited that air cargo traffic will double in the next 20 years. The company said that global e-commerce will drive this growth. In it’s 2018 World Air Cargo Forecast, Boeing noted that air cargo, including perishables, electronics and pharmaceutical products “are some of the fastest-growing trade flows around the world.” The company also predicted that it may be necessary to convert more than 1,100 standard-body and 500 medium wide-body passenger airplanes into freighters to handle the volumes. For more on this, please see Supply Chain Dive.
EU AND SINGAPORE SIGN FREE TRADE AND PARTNERSHIP AGREEMENTS
The European Union and Singapore signed a landmark trade agreement this week. EU leaders called the EU-Singapore Free Trade Agreement (FTA) a symbol of their commitment to free trade. As well as greater market access for both, the FTA will allow Singapore companies to bid for jobs with European government entities and vice versa. For more on this story, please click here. (And a quick reminder: the PRECISION FTA solution allows you to run “what if” scenarios for upcoming free trade agreements.)
UK MAY CHARTER SHIPS POST-BREXIT FOR EMERGENCY SUPPLIES
This week the British government announced it was considering chartering ships to bring in emergency food and medicines in the event of a “no-deal” Brexit. Theresa May’s cabinet heard on Tuesday that French customs controls could bring the busy Dover-Calais route to a halt. Under a no-deal scenario, MP David Lidington suggested that the route would run at 12 to 25 percent of its normal capacity for up to six months. If the UK leaves the EU under World Trade Organisation rules checks on trade across the English Channel will be necessary. Nearly a third of the food the UK consumes comes from the EU. Dover is one of the key ports of entry. For more details, please see The Irish Times.
UK MAY NEED LENGTHY WTO NEGOTIATIONS
This Thursday, the UK’s International Trade Secretary Liam Fox said that it was not possible to quickly normalize the UK’s World Trade Organization commitments. The UK proposed replicating the European Union’s current WTO trade terms. However, Fox told parliament that a number of WTO members “expressed reservations” about this plan. As a result, the British government will need negotiate with other members on basic terms of trade after Brexit. The UK will seek to modify its WTO commitments under Article 28 of the General Agreement on Tariffs and Trade. If the UK does not have certified WTO commitments on market access and tariffs, it will be more difficult to strike new trade deals. For more on this, please see Bloomberg.
BREXIT MAY FORCE ASTON MARTIN TO REJIG ITS SUPPLY CHAIN
This week, car maker Aston Martin said it was looking at transporting more car components by air and changing the ports it uses. Aston Martin’s Chief Executive Andy Palmer told Reuters that the company is concerned that the Dover-Calais route will be unable to cope with customs checks after Brexit. He also noted that this would increase costs for the company. Automotive supply chains are complex. As a result, this makes them vulnerable to post-Brexit disruption. Car parts arriving at UK ports could face customs delays which will in turn delay production. In addition, car manufacturers may face new tariffs and taxes as well. For more details, please click here.
The Precision Report
HALLOWEEN NIGHTMARES: MITIGATING RISK FOR IMPORTERS AND INTERNATIONAL SHIPPERS
In this week’s Precision Report Jerry Peck discusses “Halloween nightmares.” Confiscated imports, delayed deliveries and peak season surcharges are some of the nightmares that keep importers and shippers awake at night. Jerry looks at the risks and strategies to avoid them. When he is not scaring local trick-or-treaters, Jerry is Precision Software’s Global Trade Management expert. He has over 30 years of experience with a career that has encompassed nearly every facet of GTM, including third-party logistics, trade operations within Fortune 300 multinationals, and professional services consulting firms. Jerry is a also a contributing author to the Dictionary of International Trade (World Trade Press), and has been a featured columnist with The Journal of Commerce since 2002. To read the full report, please click here.