In the QAD Precision News Round-Up: 20 November 2020, DHL to test
heavy-duty EV trucks in US; sticking points remain in UK/EU deal;
slow October retail sales in US; USPS to increase rates; Amazon
gobbles up UK warehouses; plus multi carrier shipping software and more.
DHL is to pilot the use of four battery-powered heavy-duty trucks in
Los Angeles. This is the company’s first move into Class 8 electric
vehicles in the US. According to DHL, the trucks will transport goods
to and from it’s Los Angeles air gateway and services facilities. The
average haul length will be 36 miles. Each truck will make multiple
hauls per day. In addition, the trucks will support DHL’s peak season
operations in the US. For more information, please see Freight Waves.
On Monday, the US Postal Service (USPS) announced increases for its
shipping rates in 2021. Next year, commercial shipping rates will
increase by 3.5 percent on its Priority Mail two- to three-day
deliveries, while its Priority Mail Express next-daily delivery will
increase 1.2 percent. However, the Postal Regulatory Commission (PRC)
must first approve the increases. Once approved, the price changes
will come into effect from January 24. According to the USPS, the
rates will allow the service to offer both competitive pricing and
generate revenue. For more information on this news item, please see
In October, US retail sales were slower than expected. The slow sales
are a result of increasing coronavirus cases and declining income due
to unemployment and the loss of financial support from the government.
Last month, retail sales grew by just 0.3 percent. This was the
smallest increase since the beginning of the recovery in May. For more
details, please see Reuters.
As a result of Brexit uncertainty, online retailers have become
worried about cross-border supply chain issues and the possibility of
needing to store additional inventory in the UK. Consequently,
e-commerce giant Amazon has been investing in its UK logistics and
delivery infrastructure. Amazon now accounts for up to one third of
new warehouse space in the country. Furthermore, while this is a part
of its growth in the UK, a no-deal Brexit and supply chain delays
could impact Amazon. For more information, please see eSellerCafe
In October, UK inflation rose by more than expected. This was due to
higher prices for both clothing and footwear and food as tighter
coronavirus restrictions came into force across much of the country.
The Office for National Statistics said that UK consumer prices grew
by 0.7 percent annually. That is slightly higher than the 0.6 percent
forecast by a Reuters poll of economists and followed a 0.5 percent
increase in September. Nonetheless, in Scotland, Wales and Northern
Ireland, surveys of consumers indicated that many turned to renewed
stockpiling in response to the restrictions. At the end of October,
the UK government announced a one-month lockdown for England and began
on November 5. For more details, please see RTE.
An EU official has said that trade talks between the EU and UK are
very close to an agreement on most issues. However, conflict remains
over fishing rights, guarantees of fair competition and mechanisms to
solve future disputes. On Thursday, the Brexit negotiators had to
suspend direct talks after an EU team member tested positive for
coronavirus. Negotiations continued remotely as officials worked
towards reaching a trade deal that would come into effect in six
weeks. For more details, please see Reuters.
Even before the global pandemic shut stores around the world,
e-commerce was an unstoppable force. Last year, over 100 billion
parcels were shipped across 13 major markets — Australia, Brazil,
Canada, China, France, Germany, India, Italy, Japan, Norway, Sweden,
the UK and the US.
Small parcel volumes will continue to rise. Forecasts suggest that
parcel volumes will more than double by 2026. This growth is largely
due to retail e-commerce.
However, e-commerce has impacted other industries as well. Parcel
shipping has become increasingly important for companies that ship
More parcels are going to more customers, in more places than ever
before. With increased volumes, shippers also have an increased need
to manage and control the parcel shipping spend. In this QAD Precision
Report we discuss the benefits of multi carrier parcel shipping
solutions. 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 through what amounts
to an ongoing instability crisis. Even in the event of a deal,
shippers will need to comply with a number of different customs requirements.
Please join QAD Precision on Tuesday, 24 November 2020 at 2
pm GMT for a 30-minute webinar where industry experts will
look at how the following processes can simplify post-Brexit global
trade and shipping:
Documentation & Paperless Shipping
If you can’t attend, register anyway and we'll send you the on-demand recording.