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.
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
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
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
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