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.
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.
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.
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
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.
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
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.
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
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.
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.