In the QAD Precision News Round-Up 22 May 2020, UK unveils
post-Brexit tariff regime; WTO reports decline in global trade; Target
trials new sort centers; demand for autonomous deliveries surge; plus
the benefits of free trade agreement compliance and more.
TARGET TRIALS POST-STORE SORT CENTER FOR LAST-MILE DELIVERY
In an effort to better facilitate last-mile delivery, Target is
trialing a new sort center concept downstream from stores. Target
plans that the sort centers will eliminate parcel sorting from stores.
As a result, this should enable greater throughput of e-commerce
orders along with increased shipping efficiency to reduce costs per
order. These facilities will be smaller than a regular Target store.
The company will determine their location by parcel density.
Nevertheless, it is worth noting that in the first quarter of this
year, Target completed 80 percent of e-commerce orders using
ship-from-store fulfillment. Target also achieved a 141 percent
year-over-year increase in e-commerce revenue. Please see Supply
Chain Dive for more information.
UK UNVEILS POST-BREXIT TARIFF REGIME
On Tuesday, the UK announced a post-Brexit tariff regime to replace
the EU’s external tariff. Under this new regime, the UK will not
remove tariffs on imported products that compete with local
industries, such as fishing and agriculture, as well as automotive and
ceramics. However, under the new tariff regime, the UK will cut duties
on £30 billion ($37 billion) worth of supply chain imports.
Furthermore, the new tariff regime aims to streamline what some UK
officials believe to be an overly complex EU system and assist Britain
in negotiating trade agreements with the United States, the EU and
others. For in-depth information, please see Reuters.
WTO REPORTS DECLINE IN GLOBAL TRADE
The World Trade Organization (WTO) has reported that international
imports and exports have dropped to their lowest level in four years
as the coronavirus impacts the global economy. The WTO quarterly goods
trade barometer fell to 87.6. On this scale, readings of less than 100
signify a downturn. This reading is the lowest value on record since
the WTO unveiled the indicator in July 2016. Automotive products were
most negatively impacted due to a collapse in car production and
vehicle sales in the world’s leading economies. Additionally, declines
in demand for traded goods and supply chain disruptions have resulted
in reduced container shipping and air freight across all sectors. You
can read more details on this news item at The Guardian.
DHL EXPRESS PILOTS E-CARGO CYCLES DELIVERIES ACROSS MIAMI
DHL Express is to test the use of low-power e-Cargo Cycles in Miami,
Florida. The carrier is partnering with REEF Technology for the trial
of the delivery e-Cargo cycles. The vehicles have a cargo container
and can pull up to 400 pounds or 60 cubic feet in volume. As a result,
for each e-Cargo Cycle used, DHL can take one regular delivery van off
the road, reducing road congestion, noise and pollution. Moreover, by
2025, DHL plans to have clean pickup and delivery solutions for 70
percent of its operations. For more information on the DHL Express
e-Cargo Cycle trial, please click here.
INCREASE IN AUTOMATED DELIVERY VEHICLES DURING LOCKDOWN
Autonomous deliveries have surged in demand due to the coronavirus
lockdown. Consequently, automated delivery company Waymo, owned by
Google’s parent Alphabet, has seen an increase in investment during
the pandemic, as the company raised $750 million in mid-May. At first,
Waymo concentrated on self-driving vehicles, such as taxis and trucks,
but now has inked deals with Walmart and UPS for its delivery arm. For
more details on this news item, please see Charged Retail.
AIR FREIGHT VOLUMES INCREASE AT ONT CALIFORNIA
In April, Ontario National Airport (ONT) in California reported its
highest year-on-year growth in air freight volumes. During the month
of April, approximately 75,000 tons of commercial cargo were loaded
and unloaded at ONT, a 26.6 percent increase compared to April 2019.
Furthermore, ONT handled more than 271,000 tons of air freight in the
first four months of this year, a 16.5 percent increase on the same
period last year. You can read more details on this at AirCargo News.
QAD Precision News
FREE TRADE AGREEMENT COMPLIANCE: CHALLENGES VS BENEFITS
After 14 months of negotiations, the United States, Canada and Mexico
agreed the terms of the new Nafta free trade agreement on 30 September
2018. This was just the first step in the process. After that, the
three signatory countries had to ratify the United States - Mexico -
Canada Agreement (USMCA).
Naturally, the three countries have different routes, and timelines,
for ratification. Mexico first ratified the updated FTA, followed by
Canada and then the US. Furthermore, all three countries had to notify
one another that they were ready to comply with the new FTA. It was
possible that the Covid-19 pandemic could have delayed the USMCA, but
on 24 April the parties completed the final steps. As a result, the
USMCA comes into force on 1 July. Free trade agreements offer
enterprises a competitive advantage, but compliance can be burdensome.
In this QAD Precision Report we look at the challenges and benefits of
automating FTA compliance. To read the full report, please click here.