In the QAD Precision News Round-Up: 13 November 2020, Amazon Air
opens European hub; 15 Asia-Pacific nations to sign the world's
largest trade deal; EU imposes tariffs on $4 billion US goods; no
Brexit deal yet; plus trade compliance for life sciences companies
Amazon Air has launched its first regional air hub in Europe. The new
facility is at Leipzig/Halle Airport in central Germany. The airport
connects to the trans-European motorway and railway networks. This
enables trucks to reach 15 European countries within eight hours.
Packages from Amazon fulfillment centers in Europe will be processed
through the 20,000 square meter facility. The e-commerce giant has
leased two Boeing 737-800 and contracted with ASL Airlines to fly
them. For more information, please see FreightWaves.
China and 14 Asia-Pacific nations are set to sign the world’s largest
free trade deal at the end of this week’s ASEAN summit. The Regional
Comprehensive Economic Partnership (RCEP) includes countries
stretching from Japan to Australia and New Zealand. India withdrew
from participation in the deal last year. RCEP’s aims are to reduce
tariffs, strengthen supply chains with common rules of origin and new
e-commerce rules. The deal may disadvantage some US companies and
other multinationals outside the zone. For more information, please
The EU is imposing tariffs on $4 billion (£3 billion) of US goods in
retaliation for US subsidies on Boeing. Last month, the World Trade
Organization approved the levies that took effect this Tuesday. The EU
announced that it will apply border taxes of 25 percent to items
including tractors, orange juice and ketchup. US aircraft imported
into Europe will face tariffs of 15 percent. EU Trade Commissioner
Valdis Dombrovskis said the EU wanted to see the removal of tariffs on
both sides. However, according to Mr. Dombrovskis, there has been no
progress towards a settlement. For more details, please see BBC News.
According to data released by global trade intelligence firm Panjiva,
US-bound imports were strong in October. Total imports in October were
up by 16.3 percent annually, after a 15.2 percent annual gain in
September. Containerized freight shipments increased to a new record
of 16.8 percent, following a 11.2 percent September gain.
Coronavirus-related healthcare saw a 47.4 percent increase in October.
Furthermore, consumer staples imports grew 33 percent annually. For
more details, please see Logistics Management.
On Wednesday, Irish Foreign Minister Simon Coveney said that EU-UK
trade negotiations are likely to run into next week, missing a
mid-November deadline. According to EU sources, negotiators are likely
to come up with an agreed text in the middle of next week, unless
talks collapse or there is a breakthrough earlier. All 27 national EU
leaders must accept any agreement. EU leaders are due to meet in a
video conference on November 19. The European Parliament, which will
ratify the deal, has said that time is running out. It expects
ratification to take place on December 16, if lawmakers receive a
treaty by November 16. For more information, please see Reuters.
DHL is preparing for what is likely to be the strongest peak season
on record. Craig Morris, Chief Information Officer at DHL eCommerce
Solutions Americas, has said that the division has experienced 50
percent year-on-year growth in volumes. He stated that this is
forecast to increase again, by over 50 percent during peak. In
preparation for this year’s peak, DHL decided not to accept any
shipper customers in August, something that is typically done in
October. President of eCommerce for DHL Supply Chain North America,
Kraig Foreman, said the majority of shippers and retailers have
arranged peak season capacity. However, this could come under threat
if demand increases further. For more details, please see The
Life sciences companies have complex supply chains. They manufacture
and distribute products that may include biological matter, scheduled
medicines and hazardous material. As a result, the life sciences
industry is, with good reason, heavily regulated.
Furthermore, life sciences enterprises that distribute their products
globally often need to work within a number of different regulatory
environments. This can make compliance a challenge. In this QAD
Precision Report we look at trade compliance for life sciences
companies. To read the full report, please click here.
Given the ongoing uncertainty and fluidity of the UK’s global trade
situation post-Brexit, corporate leaders are understandably concerned
about their ability to manage their supply chains. Even in the event
of a deal, shippers will need to comply with a number of different
Please join QAD Precision on Tuesday, 24 November 2020 at 2pm GMT
(9am EST) for a 30-minute webinar where industry experts will look at
the processes necessary to simplify post-Brexit global trade and
Documentation & Paperless Shipping
To register, please click here.