In the QAD Precision News Round-Up: USPS to up prices; FedEx
announces surcharges; shippers turn to regional carriers; Marks
& Spencer to cut 7,000 jobs; UK inflation rose in July; Amazon
expands in Phoenix, plus the benefits of automating trade compliance.
USPS ANNOUNCES TEMPORARY PRICE CHANGE
The United States Postal Service (USPS) is planning a temporary price
change. This is as a result of an increase in expenses and higher
volumes of online shopping due to Covid-19. USPS has filed notice with
the Postal Regulatory Commission (PRC) with plans for the price change
to take effect from October 18, 2020 until 27 December, 2020. The
planned changes would impact the USPS’s commercial domestic
competitive parcels. These are Priority Mail Express, Priority Mail,
First-Class Package Service, Parcel Select, and Parcel Return Service.
For more information, please see Post
FEDEX ANNOUNCES PEAK SURCHARGES
On Tuesday, FedEx announced its peak shipping season surcharges. The
additional charges will apply to customers that shipped over 35,000
packages via FedEx Express and FedEx Ground in any week covering two
separate periods: October 5-18 and November 16-29. The first FedEx
surcharge will apply between November 2 and December 13. However, this
is for volumes shipped during the 14 day October period. The second
fee applies between December 14 and January 17. These surcharges will
apply for packages shipped during the 14 day period in mid to late November.
FedEx will calculate the surcharges using shippers’ volumes between
February 3 and March 1. This period is prior to lockdown restrictions.
Therefore, this represents the last period of normal volumes before
Covid-19 caused a surge in e-commerce packages. FedEx will apply a $1
surcharge to each ground parcel delivery if a shipper’s total volumes
exceed 110 percent of volumes during the February period. Surcharges
incrementally increase by $1, up to a maximum of $4, for shippers
whose peak volumes exceed 500 percent of February volumes. For more
information, please see Freight Waves.
SHIPPERS SHIFT TO REGIONAL CARRIERS
According to logistics experts and Convey data, shippers have started
to make more use of regional carriers to meet high demand. Major
carriers FedEx, UPS and USPS have capacity crunches due to increased
volumes. In the first seven months of 2020, 17 percent of retail
volume went to regional carriers compared to 3.8 percent in 2019 and
6.2 percent in 2018. Convey’s data also revealed that regional
carriers handled 24 percent of retail volume in July. For more
details, please see Supply
UK INFLATION RISES IN JULY
Last month, inflation in the UK rose unexpectedly to its highest
since March. Consumer price inflation increased to 1 percent in July
from 0.6 percent in June, according to the Office for National
Statistics (ONS). The ONS stated that clothing and footwear prices
were the largest contributor to the rise in inflation. Once lockdown
restrictions eased, clothing stores did not hold their usual summer
sales. In addition, higher prices for petrol, haircuts, dentistry and
physiotherapy also contributed to the increase. Most economists
anticipate the rise to be temporary. The Bank of England expects
inflation to turn briefly negative, falling to -0.3% in August. For
more information, please see Reuters.
MARKS & SPENCER ANNOUNCE 7,000 JOBS CUTS ACROSS UK
Marks & Spencer have announced plans to cut 7,000 jobs over the
next three months. The majority of the cuts will affect its 60,000
shop floor staff. However, the retailer will also trim head office
roles and resize regional management teams. M&S stated that the
job cuts were necessary in response to the coronavirus pandemic and a
sharp drop in sales. However, the retailer said that online and home
delivery demand remained strong. In recent months, the UK retail
sector has shed more than 30,000 jobs. For more details, please see Sky News.
AMAZON EXPANDS LAST MILE FULFILLMENT IN GREATER PHOENIX
Amazon has announced 11 new sites across the Phoenix metro area.
These should be operational by the end of this year. The new sites
will support customer fulfillment and delivery operation. Furthermore,
the new sites will create approximately 3,000 new full- and part-time
jobs. The new sites will include seven delivery stations and two
facilities that support fulfillment operations. For more information,
please see Post
QAD Precision News
3 MINUTE EXPLAINER: WHY YOU SHOULD AUTOMATE TRADE COMPLIANCE
Shipping goods internationally comes with a host of rules. Export
compliance cannot be ignored. Violating trade laws and regulations
puts a company at the risk of fines.
Depending on where they ship from, and to, companies have a huge
number of rules and regulations that they must follow. These include
ensuring that no sanctions violations occur, that they are not trading
with denied parties or groups, that sensitive technology is not sent
to unauthorised persons, that they have the correct licences and
permits where necessary, that goods are not restricted, and that all
goods are correctly classified — to name just a few considerations.
As a result, trade compliance can be a significant challenge. In this
3 Minute Explainer, we explain why shippers should automate compliance
processes.To read the full explainer, please click here.