Precision Report

Thought leadership from industry experts to help you master global trade and transportation best practices.

Back

Precision Software News Round-Up: 9 November 2018

In the Precision Software News Round-Up: 9 November 2018, FedEx announces 2019 rates; bpost has a great third quarter; and Amazon is to hire seasonal delivery drivers. Also this week, US sanctions against Iran kick in; Zara goes online in over 100 new countries; the importance of multi carrier compliance, and more.

Sanctions

US SANCTIONS AGAINST IRAN COME INTO FORCE

On Monday, US sanctions against Iran kicked in. Described as the “toughest ever" measures against Iran, the US reinstated all sanctions removed under the 2015 Iran nuclear deal. The sanctions target oil, shipping and banking. However, Iranian oil exports will continue. Eight of Tehran’s biggest oil customers have temporary waivers allowing them to continue buying oil. The exempt countries are China, India, Italy, Greece, Japan, South Korea, Taiwan and Turkey. China buys around a third of Iran’s crude exports. US sanctions against Iran’s financial system are robust and likely to deter trade. Washington blames Tehran's "malign" activities for the sanctions. The US cited cyber attacks, ballistic missile tests, and support for extremist groups and militias as examples. For more details, please see the BBC and The Guardian.

Carriers

FEDEX ANNOUNCES 2019 RATES

Global carrier FedEx announced 2019 increases this week. The new rates come into effect on 7 January 2019. Ground and Home Delivery increase by an average of 4.9 percent. FedEx Freight rates across North America and Mexico are also to increase — by an average of 5.9 percent. Surcharges will cost more too. The express freight surcharge will cost $175 per freight handling unit — up from $140. Additional handling surcharges for packages (by dimension) will increase from $12 to $13.50 in 2019. For more, please see FedEx.

FEDEX LAUNCHES NEW APAC SERVICE

More FedEx news! This week, FedEx Express launched a dedicated service between Sydney and Singapore, taking place four times per week. The service will transport retail freight, cold chain, perishables, lithium ion batteries and heavyweight goods. For more on this story, please click here.

DHL OPENS NEW IRISH FACILITY

This week, DHL Express opened a new €4.5 million facility in the west of Ireland. The hub is within easy reach of Shannon Airport as well as the national roads network. DHL had also upgraded the facility’s aircraft and increased capacity by around a third. For more information, please click here.

Retail E-Commerce

ZARA OFFERS ONLINE SHOPPING IN 106 MORE COUNTRIES

On Thursday, Spanish clothing retailer Zara launched an online platform to sell its products in an additional 106 countries. The retailers offerings are now available in countries without brick-and-mortar Zara stores. These include Angola, Ivory Coast, Senegal, Ghana, parts of the Caribbean and Indonesia. Orders from these territories will be processed in Spain. You can read more about this here.

AMAZON TO HIRE THOUSANDS OF DRIVERS FOR PEAK SEASON

Amazon announced plans to hire thousands of seasonal delivery drivers across the US. The e-commerce giant will be facing competition for staff from UPS and FedEx. Both carriers announced seasonal hiring plans in recent weeks. UPS alone has 100,000 temporary position on offer. Amazon is likely to be extremely busy this peak season. The company is to waive the $25 minimum spend normally required to qualify for free holiday shipping. For more on this, please see Reuters.

 

The Precision Report

MULTI CARRIER COMPLIANCE IS CRUCIAL TO MANAGING PEAK SEASON SHIPPING

November is upon us and carriers are forecasting record numbers of parcels this peak season. This holiday season, UPS expects to handle a whooping 800 million packages. China kicks off the e-commerce spending spree with Alibaba’s Singles’ Day. Next up is Black Friday, falling this year on 23 November. Black Friday may have started off as a US tradition, but it has become a global phenomenon. Holiday season volumes highlight the importance of multi carrier compliance. In the latest Precision Report we look at how shippers can ensure timely and cost-effective deliveries with multi carrier compliance. To read the report, please click here.

 

SUBSCRIBE TO PRECISION

To subscribe to the Precision Report, or to receive notifications about Precision events, webinars and news, please click here.