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QAD Precision News Round-Up: 10 January 2020

In the QAD Precision News Round-Up: 10 January 2020, UK PM Boris Johnson begins talks with Ursula von der Leyen; UK car sales at lowest since 2013; President Trump threatens Iraq with sanctions; is your transportation execution strategy ready for 2020 plus more.  

Global Trade 

BORIS JOHNSON TO MEET WITH  URSULA VON DER LEYEN

On Monday it was announced that UK Prime Minister Boris Johnson was to host the President of the European Commission, Ursula Von Der Leyen in Downing Street, as preparations to take Britain out of the EU at the end of this year are underway. It is expected that Boris Johnson will reiterate the government’s determination not to extend the transition period. During the transition, the UK remains subject to many EU rules and structures. This period comes to an end on 31 December 2020. For more information, please see The Guardian.

USMCA NEARS FINISH

On Tuesday, the US Senate Finance Committee voted 25-3 to move the US-Mexico-Canada Agreement (USMCA) Implementation Act forward. The next stage is for the full Senate to approve the updated NAFTA deal, which was passed by the House of Representatives on December 19. At present, Mexico’s Senate has already ratified the USMCA, and Canada’s Parliament is expected to do so soon. For more information, please see FreightWaves. 

US THREATENS  SANCTIONS IF TROOPS ARE EXPELLED FROM IRAQ

US President Donald Trump has threatened to impose sanctions on Iraq after its Parliament asked US troops to leave. According to President Trump, the US has an “extraordinarily expensive” air base in Iraq. President Trump stated that troops will not leave the country until the US is paid back for the base. Iraq's request follows the assassination of Iranian General, Qasem Soleimani last week. Tensions between the US and Iran are high, and Iran has vowed “severe revenge.” For more details, please see the BBC. 

CHINA’S VICE PREMIER TO SIGN US TRADE DEAL NEXT WEEK 

Next week, China’s Vice Premier Liu He, head of the country’s negotiation team in the China-US trade talks is due in Washington. Liu will sign “Phase 1” of the trade deal with the US, according to the commerce ministry. This deal, reached last month, is expected to cut tariffs in return for increased Chinese purchases of US farm, energy and manufactured goods. Additionally, disputes over intellectual property will be addressed. For more details, please see Reuters. 

Retail 

AMAZON ANNOUNCES OPENING OF PHYSICAL STORE IN GERMANY 

E-commerce giant, Amazon has announced plans to open physical stores in Germany. The move appears to be the online retailer’s next step in an effort to establish itself as a bricks-and-mortar presence. Amazon’s chief executive in Germany, Ralf Kleber, stated that the country is Amazon’s second largest market. Therefore, it is likely to be the next country to see the online retail giant open physical stores. For more details, please see Charged Retail. 

UK CAR SALES AT LOWEST SINCE 2013

Last year, the number of new cars sold in Britain fell to its lowest since 2013. Reasons for falling sales include increased restrictions on diesel vehicles and Brexit uncertainty. In 2019, new car registrations declined by 2 percent to 2.31 million, according to provisional data from the Society of Motor Manufacturers and Traders (SMMT). For more information, please see Reuters. 

UK RETAIL SALES DECLINE IN 2019 

Figures from the latest Retail Sales Monitor found that retail sales in the UK decreased by 0.1 percent in 2019. In 2018, the retail industry experienced 1.2 percent growth. Helen Dickinson, British Retail Consortium chief executive, said that the overall figures revealed that 2019 was the worst year on record. 2019 was also the first year to show a decline in retail sales. According to Ms. Dickinson, reasons for the decline include shop closures, job losses, and the ongoing impacts of Brexit uncertainty. For more information, please see Retail Gazette. 

QAD Precision News

IS YOUR TRANSPORTATION EXECUTION STRATEGY READY FOR 2020?

Peak shipping season is stressful for any organization that delivers goods to customers. The holiday period is, unsurprisingly, particularly busy for retailers. However, whether you’re selling seasonal goods and gifts or are closing out your fiscal year end, peak season can be a challenge. Massive volumes of orders can impact warehouses, distribution centers and carrier networks. 

E-commerce has made small parcel shipping integral to many industries. Data released in December by two different consultancies found that across the US, carriers performed well over week 50 2019. Both UPS and FedEx achieved over 99 percent on-time last mile delivery during week 50. The USPS was only slightly behind with an on-time delivery rate of 98.7 percent during the same period. However, large parcel volumes and weather events caused delays across parts of the US, and on-time delivery rates slipped during weeks 48 and 49. In this QAD Precision Report we look at peak season 2019 and discuss areas where shippers can look to improve efficiencies in 2020.To read the full report, please click here.

 

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