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QAD Precision News Round-Up: 25 October 2019

In the QAD Precision News Round-Up: 25 October 2019, US-China talks resume; drone news from Wing and UPS; EU may compensate for US tariffs; China to US shipping rates slump; plus three ways retailers can optimize peak season parcel shipping and more. 

Carriers

WING BEGINS DRONE  DELIVERY SERVICE IN US 

On Friday 18 October, Wing became the first company to operate a commercial air delivery service via drone to homes in the US. Wing delivered packages to residents in Christiansburg, Virginia including over-the counter medication, snacks and gifts. FedEx Express, Walgreens and local Virginia retailer Sugar Magnolia are collaborating with Wing on this service.  For more information, please see Post & Parcel.

UPS AND CVS PARTNER TO DEVELOP DRONE DELIVERIES FOR PRESCRIPTION DRUGS 

In more drone news, on Monday, UPS and CVS Health announced plans to develop a prescription drug delivery service using UPS drones. Earlier this October, UPS Flight Forward and partner Matternet became the first drone delivery service to receive full certification from the FAA to operate a drone airline. For more information, please see CNBC. 

AUSTRALIA POST OPENS SUPER HUB 

In preparation for the busy Christmas period, operations have begun at Australia Post’s new superhub in Brisbane. The $200 million facility will employ 3,700 people over the Christmas period, including 1,200 fixed term roles, to serve customers in post offices, customer contact centers and across the delivery network. For more information, please see Post & Parcel. 

Transportation

CHINA TO US SHIPPING RATES DECLINE 40 PERCENT 

Throughout October, year-over-year (YoY) ocean freight rates have fallen from China to the US. Compared to last year, rates from China to the East Coast are down approximately 22 percent while  rates to the West Coast are down by more than 42 percent. For more details, please see Supply Chain Dive. 

Global Trade

US AND CHINA TO DISCUSS AGRICULTURAL PURCHASES AND TARIFF ROLLBACK

On Friday, top US and Chinese trade officials will discuss plans for China to buy more US farm products. In return, Beijing will ask for the cancellation of some proposed and existing US tariffs on Chinese imports. The two sides are working to try to agree on a text for a “phase 1” trade agreement. President Donald Trump has already agreed to cancel the slated October increase in tariffs on $250 billion in Chinese goods. In return, China will increase US agricultural purchases, offer greater access to China’s financial services markets, as well as improve intellectual property protections. For more information, please see Reuters. 

EU TO COMPENSATE SECTORS FOR US TARIFFS 

Italian Prime Minister Giuseppe Conte has said that the European Union is working on measures to compensate sectors affected by US tariffs. The US imposed tariffs on $7.5 billion worth of EU imports in retaliation to EU subsidies to the aircraft industry. The tariffs focus on Airbus-producing countries, including Spain, Germany, France and Britain. For more details, please see Reuters.


QAD Precision News

THREE WAYS RETAILERS CAN OPTIMIZE PEAK SEASON PARCEL SHIPPING

This October, the annual Pitney Bowes Parcel Shipping Index announced that global parcel volume reached 87 billion in 2018. That is a 17 percent increase and a significant jump from the 74 billion parcels shipped in 2017. The report further forecasts that volumes will continue to rise and reach 200 billion parcels by 2025. 

E-commerce is driving this growth across a variety of industries. Although most closely associated with retail and the seemingly unstoppable rise of online shopping, parcel shipping volumes are growing across a number of vertical markets due to the increase in direct-to-consumer sales and shortening supply chains. Come November however — with Black Friday, Cyber Monday and Alibaba’s Singles Day — and retail parcel volumes soar.  It seems likely that 2019’s volumes will surpass last year’s totals.

The upsurge in retail parcel volumes over the holiday period is not accompanied by fewer parcel shipments across other industries. Shippers across many industries need to send parcels all year round. This makes peak season a challenge for many enterprises. To read the full report, please click here. 

CATCH UP WITH QAD PRECISION AT PARCEL FORUM

Catch up with QAD Precision at this year’s Parcel Forum in Dallas, between October 28th and 30th, 2019. QAD Precision Global Account Executive, Michael Tew and Sr. Solutions Consultant Jeff Flanagan will be at booth 408, and attendees are invited to drop by to learn more about the QAD Precision suite of solutions. 

“Parcel shipping is increasingly mission-critical for enterprises,” said Michael. “We are looking forward to returning to Parcel Forum and discussing how QAD Precision can help companies to optimize their parcel shipping operation, whether they ship domestically or around the world.” 

 

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