In the QAD Precision News: 12 June 2020, Vietnam ratifies FTA with
EU; UK and Japan begin trade talks; grim predictions from the OECD;
UK retail sales improve in May; UPS announces healthcare-dedicated
expansion; plus 8 critical questions life science shippers need to
ask before choosing a parcel shipping solution and more.
On Monday, Vietnam ratified a free trade deal with the EU that will
eliminate 99 percent of tariffs on goods traded between the Southeast
Asian country and the bloc. In addition, the deal should provide
Vietnam with an economic boost as it recovers from the coronavirus
pandemic. The European Union Vietnam Free Trade Agreement (EVFTA) is
expected to take effect in July. The EU has already signed a free
trade agreement with Singapore, making this the bloc’s second deal
with a member of the Association of Southeast Asian nations (ASEAN).
For more information, please see Reuters.
On Tuesday, Japan and the UK began negotiations to reach an agreement
on a post-Brexit trade deal. The aim of the talks is to create a trade
deal similar to the one that London and Tokyo have under the European
Union. If the two countries fail to reach an agreement before January
1 2021, they will default to World Trade Organisation trading terms.
In this outcome, tariffs and other obstacles to commerce would be in
place between the UK and Japan. Additionally, Britain began trade
talks with the US in May and is hoping to reach an agreement with the
EU by the end of this year. For more details, please see BBC.
On Wednesday, the Organisation for Economic Cooperation and
Development (OECD) forecasted that the global economy will contract 6
percent this year — the biggest peace-time downturn in a century.
Nonetheless, the OECD also predicts that there will be 5.2 percent
growth in 2021 as the global economy emerges from a recession
inflicted by coronavirus. However, the report states that a possible
scenario of a second wave of the virus this year could cause the
global economy to shrink 7.6 percent before recovering by 2.8 percent
in 2021. For more details, please see Reuters.
On Wednesday, UPS announced a number of facility expansions to its
healthcare warehouses and distribution network in important global
markets. The carrier plans to create up to 1.5 million sq. ft of
distribution space for coronavirus-related shipments, including
expansions in Central and Eastern Europe, extra cold chain in
Louisville in the US, plus a new facility in Shanghai. Furthermore,
UPS is expanding its GDP facility in Hungary and GMP space in the UK.
For more information, please see UPS Pressroom.
DHL Express has announced that it is adding approximately 400 new
jobs in the US. The move comes as a result of shipment volumes seeing
double digit growth compared to 2019. CEO for DHL Express US Greg
Hewitt said that the coronavirus lockdown has caused volumes to
increase due to online shopping growth. Additionally, Hewitt stated
that urgent shipments, including masks, gloves and other PPE also
contributed to a spike in volumes. For more information, please see American
Journal of Transportation.
The British Retail Consortium (BRC) has reported a large decline in
UK retail sales in May, but less of a fall than in April. On Tuesday,
industry data revealed that this is a result of lifting some Covid-19
restrictions and an increase in online shopping. In addition, the BRC
revealed that total retail spending at its members — mostly large
chains — was 5.9 percent lower than May 2019. However, this is an
improvement compared to the record 19.1 percent drop last month when
nearly all non-essential retailers were closed due to the coronavirus
lockdown. For more information, please see Reuters.
The global Covid-19 pandemic has underlined just how important it is
for life sciences companies to ship life saving products in a timely
manner. Nonetheless, even before the global pandemic life sciences
companies were dealing with the need to send more parcels to a larger
number of destinations than ever before. Furthermore, changes in
treatments also means that life science shippers have an increasing
number of goods that need temperature-controlled or cold-chain storage
in order to ensure the product’s efficacy. As a result of these
challenges, life sciences companies have turned to technology to
assist with their parcel shipping needs. In this QAD Precision Report
we look at the challenges of life sciences shipping and eight
important questions to ask before choosing a parcel shipping solution.
Read the full report here.
QAD Precision’s Jerry Peck argues that the Covid-19 crisis will
result in lasting change to the business landscape, and that even
manufacturers with the best-laid supply chain contingency plans were
ill-prepared to handle the myriad issues that the pandemic disruption
brought on. Read the full article here.