QAD Precision News Round-Up: 13 December 19

In the QAD Precision News Round-Up: 13 December 2019, USMCA is signed; hope for a US-China deal; DHL says sustainable packaging is needed; package delays predicted; UK election victory for Boris Johnson; UPS extends express services and more.

Global Trade

USMCA AGREEMENT REACHED

The US, Mexico and Canada have finalized the US-Mexico-Canada Agreement (USMCA), the free trade deal that will replace NAFTA. Representatives from the three countries inked the agreement in Mexico. In the US, Democrats agreed to support the agreement after concessions from the White House strengthening labor and environmental rules. US President Trump claimed that the USMCA is “the best and most important trade deal ever made by the USA.” In addition, House Speaker Nancy Pelosi claimed that the revised agreement was “infinitely better” than the deal announced at the end of 2018. For further reading, please see the BBC. 

CHINA-US HOPE TO REACH TRADE AGREEMENT 

On Monday, China said that it hoped to conclude a trade deal with the US before the next round of US tariffs come into effect. At present, China and the US are negotiating a “phase one” deal intended to deescalate the ongoing trade dispute between the two countries. Washington’s next round of tariffs on Chinese goods is due to take effect on 15 December. For more information, please see Reuters.

And in more US-China news: early on Friday morning, the media reported that US President Donald Trump has signed off on the terms of an agreement with China. Under the terms of the agreement, it appears that Washington will roll back tariffs and Beijing will purchase more US agricultural products. Furthermore, on Thursday, President Trump tweeted that the US and China were close to a deal. For more details on this article, please see the BBC.

Carriers

UPS EXTENDS REACH OF EXPRESS SERVICES

UPS has expanded its UPS Worldwide Express and UPS Express Plus across 40 countries. Both are part of the carrier’s international services that offer time- and day-definite delivery. As a result, UPS express services are now available in 140 countries and territories. The recent expansion provides morning or midday-service for urgent shipments. For more details, please see Post & Parcel. 

DHL SAYS SUSTAINABLE AND EFFICIENT PACKAGING A NECESSITY 

DHL has released a report on the future of packaging. The report examines packaging needs based on sector and demographics. Furthermore, it considers the environmental impact of packaging, and how innovation might address the needs of ensuring customer satisfaction while protecting products in transit. The report revealed that the global packaging industry was worth $886.1 billion in 2018, with Asia-Pacific countries contributing to over 44 percent of this figure. Moreover, DHL’s survey found that customers are increasingly concerned about wasteful and inefficient packaging. For more information, please see FreightWaves. 

FEDEX JOINS COLLECT+

This week, FedEx Express announced a new partnership with PayPoint. As a result of this partnership, the carrier will also join Collect+, the UK’s largest independent store-based delivery and returns service. The FedEx and Collect+ service is available in approximately 2,300 Collect+ stores. The service enables consumers to receive their parcels outside of regular delivery and office hours, by offering a number of collection locations. For more information, please see Post & Parcel. 

AN POST OPENS NEW GLOBAL PARCEL FACILITY 

An Post has opened a new €15 million parcel hub in Ireland. The Irish postal operator will use the facility for both incoming and outgoing domestic and international parcels. The  automated processing facility has sorting technology that can handle over 13,000 parcels per hour. For more details, please see Parcel and Postal Technology International. 

PACKAGE DELAYS PREDICTED IN US CITIES, RURAL AREAS

This holiday season parcel delay rate in the US will be approximately 9 percent. That is according to carrier auditor LateShipment.com. Moreover, the delay rate could be as high as 16 percent — or higher — in some states. According to LateShipment.com, delays a number of factors will impact on-time deliveries, including strained sortation hubs serving busy cities and winter weather conditions. For more information, please see Supply Chain Dive. 

Politics

BORIS JOHNSON LEADS CONSERVATIVES TO VICTORY

The 2019 UK election resulted in a strong lead for Boris Johnson and the Conservative Party. Consequently, Prime Minister Boris Johnson stated that he will work “night and day” to repay the confidence of voters. The PM also declared that the result meant he had a clear Brexit mandate from the electorate. As of 10:20 am UK time, the Tories had a majority of 78 seats. Labour leader Jeremy Corbyn has announced that he will step down after the party was unsuccessful in its traditional strongholds. For more details, please see the BBC. 

QAD Precision News

THREE VALUE-ADDED SERVICES THAT HELP 3PLS ATTRACT NEW CUSTOMERS

If you’re like many third-party logistics providers, changing times are forcing you to take a broader view of the services your company provides, especially in the areas of global trade and e-commerce.  

In an era of rising real estate prices, warehouse shortages, high commodity prices and ongoing trade disputes, 3PLs cannot simply rely on adding warehouse space and shipping capacity to stimulate growth. This reality is leading many logistic providers to look to value-added services that leverage current assets to attract new customers.

The 2019 Third-Party Logistics Study found that shippers who do not have the technological capabilities to service the ever increasing demands of customers see the value in partnering with logistics providers who do. Furthermore, the study found that many 3PLs have begun investing in technology that allows them to analyze shippers’ operations. In this QAD Precision Report, we look at value-added services logistics providers can offer to meet the changing needs of customers.To read the full report, please click here.