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QAD Precision News Round-Up: 18 October 2019

In the QAD Precision News Round-Up: 18 October 2019, China’s trade with the US declines again; IMF downgrades forecasts; air cargo volumes shrink; UPS and FedEx extend peak season; plus the benefits of integrated global trade and transportation solutions and more. 

Global Trade

CHINA'S TRADE WITH US DECLINES IN SEPTEMBER

In September, China’s trade with the US declined by double digits again. According to customs data shown on Monday, China’s exports to the US fell 21.9 percent. Imports of US goods fell 15.7 percent from the previous year to $10.6 billion. Last week Friday, US President Donald Trump agreed to defer additional tariffs planned on Chinese imports. In exchange, Beijing agreed to buy approximately $50 billion of American farm goods. For more details, please see AP.

IMF SAYS THERE IS LIMITED AMMUNITION TO FIGHT RECESSION

The International Monetary Fund (IMF) has warned  that the world’s central banks are wasting scarce resources in efforts to ameliorate policy mistakes that have left the global economy at its weakest since the financial crisis of a decade ago. Furthermore, the IMF used its half-yearly World Economic Outlook (WEO) to cut its forecast for growth in 2019 and 2020. The IMF said it predicted global growth to be 3 percent in 2019 and pick up to 3.4 percent in 2020. For more information, please see The Guardian.

Transportation

GLOBAL AIR FREIGHT DEMAND IN DECLINE FOR TENTH MONTH

Data released by the International Air Transport Association shows that demand in global air freight markets declined by 3.9 percent in August compared to the same period in 2018. This marks the tenth consecutive month of year-on-year decline in freight volumes. It also marks the longest period of continual decline since the global financial crisis in 2008. Air cargo volumes have been negatively impacted by ongoing trade tensions between the US and China, amongst other economic and geopolitical factors. For more information, please see MHD Supply Chain.

Retail 

AMAZON EXPANDS OPERATIONS IN ILLINOIS

Amazon has announced plans to open a new one million-square-foot fulfillment center in Channahon, Illinois. This will create more than 500 full-time jobs. Current;y, Amazon employs around 11,000 staff in Illinois. The company has reportedly invested more than $4 billion in the state. For more details, please see Post and Parcel. 

Carriers

UPS AND FEDEX PEAK SEASON DELIVERY CHARGES

UPS and FedEx have announced that they will not impose residential delivery surcharges during peak season. However, both UPS and FedEx peak surcharges are more long lasting than previous years. This year, UPS’s peak surcharge came into place on 1 October and will remain in effect until 4 January 2020. Therefore, the 2019 UPS peak season will be 9 weeks longer than 2018, increasing from 5 to 14 weeks. FedEx has chosen a somewhat shorter window for peak season pricing. Shippers with oversize or unauthorized shipments have to pay surcharges between 21 October and 5 January. In addition, goods requiring additional handling face surcharges from 18 November to 5 January. For more information, please see The Loadstar. 

DHL AND TOTAL COOPERATE ON SUSTAINABLE BUSINESS PRACTICES

This week, DHL and Total announced a partnership on sustainable mobility and low-carbon energy solutions, as well as logistics and transport services. The two will  work together to develop new low-emissions solutions to address climate change in the areas of contract logistics, freight forwarding, road freight and express services. For more details, please see Smart Energy.

QAD Precision News

BENEFITS OF INTEGRATED GLOBAL TRADE AND TRANSPORTATION SOLUTIONS FOR MULTINATIONALS

Political wrangling has had a significant impact on global trade this year. In early October, the World Trade Organization downgraded forecasts for growth, predicting that merchandise trade volumes would rise just 1.2 percent in 2019. That figure is less than half the 2.6 percent growth the WTO had forecast in April. The WTO claimed that slowing economic growth was partly due to trade tensions — in particular, the ongoing trade war between the US and China. Nonetheless, the WTO also noted that  country-specific cyclical and structural factors had had an impact, as had uncertainty around Brexit.

Geopolitical relations have always had ramifications for how and where companies can trade. As a result, companies that manufacture from multiple sites, or ship products to and from multiple geographies, are subject to a host of compliance challenges. When political changes occur — such as sanctions — businesses must respond accordingly.  In this QAD Precision Report we look at why multinational benefit from integrating their global trade and transportation operations. To read the full report, please click here. 


 

 

 

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