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QAD Precision News Round-Up: 27 September 2019

In the QAD Precision News Round-Up: 27 September 2019, trade war between South Korea and Japan escalates; US remains in UPU; FedEx to hire 55,000 peak season workers; Amazon announces new fulfillment center in Canada; the green last mile and more. 

Global Trade

TRADE WAR BETWEEN SOUTH KOREA AND JAPAN ESCALATES

This week, the simmering trade tensions between Japan and South Korea intensified. In late August, Japan removed South Korea’s fast export status. This Tuesday, South Korea responded by removing Japan from its fast-track trade “white list.” Last year, tensions between the two countries began after a South Korean Supreme Court issued a ruling that Japan’s Nippon Steel should pay approximately 100 million won ($87,000) in restitution to South Koreans forced into unpaid labor for the firm during World War II. For more details, please see Supply Chain Dive

US-CHINA TRADE NEGOTIATIONS TO RESUME IN TWO WEEKS

On Monday, US Treasury Secretary Steven Mnuchin stated that trade talks between the US and China would resume in two weeks. Mr. Mnuchin said that he and US Trade Representative Robert Lighthizer would meet with Chinese Vice Premier Lui He. For more details, please see CNBC

Retail 

AMAZON ANNOUNCES NEW FULFILLMENT CENTRE IN CANADA

Amazon has announced plans for a new fulfilment centre in Scarborough, Toronto. This will be Amazon’s twelfth fulfillment centre in Canada and will create approximately 600 full-time jobs. At this robotics facility, staff will pick, pack and ship small items to customers varying from toys and baby products to small electronics. Vibhore Aroa, Director of Regional Operations of Amazon Canada stated that “We’re excited about our growth in Toronto, which gives us the opportunity to better serve our customers in the region.” For more information, please see Post and Parcel.

Carriers

FEDEX TO HIRE 55,000 PEAK SEASON WORKERS

FedEx plans to hire an additional 55,000 workers for peak season to account to assist with expected package volume increases. According to a FedEx spokesperson, the company will hire for full-time, temporary and career positions and the majority of the open roles are with FedEx Ground. FedEx will provide delivery services seven days per week during peak season. This will continue as a normal offering next year. For more information, please see Supply Chain Dive. 

DHL EXPRESS TO HAVE 400 EVS IN UK FLEET BY 2025

DHL Express has launched 10 new electric courier vans to their UK fleet. The new Renault ZE Masters vans will operate in London and have a range of approximately 75 miles and a payload capacity of circa 10 cubic metres. DHL Express plans to have 400 electric vehicles in its UK-wide fleet by 2025. Richard Crook, Director of Fleet at DHL Express stated that, “In our ambition to become the most environmentally-friendly provider on the market, we have to protect the needs of customers with protecting and respecting the planet.” For more details, please see Urban Transport News. 

US TO REMAIN IN UPU FOLLOWING COMPROMISE VOTE

The US is to remain in the Universal Postal Union (UPU). This comes after Congress voted to approve a “compromise proposal” — Option V — where countries importing 75,000 or more metric tons of parcels and mail will set their own rates from July 2020. For more information, please see Supply Chain Dive. 

QAD Precision News

THE GREEN LAST MILE

In recent days, the following three events occurred: Teenage climate activist Greta Thunberg accused world leaders of failure to properly address environmental issues at the United Nations Climate Action Summit; Amazon placed an order for 100,000 electric delivery vans from start up Rivian Automotive; and the first Green Postal Day took place on 20 September 2019. Taken together, these three events point to a potential sea change in the way we think about the environmental ramifications of e-commerce. 

Consumers have long been aware that online shopping has environmental and social impacts. Our purchases are often packed in single use plastics, and excess packaging is common. Delivery vans are a frequent sight on our city streets, and combustion engines spew fumes and noise. Despite this, the popularity of online shopping is unlikely to slow down. However, survey after survey has found that consumers are increasingly want retailers to address environmental concerns. In this QAD Precision Report we look at green logistics for retailers. To read the full report, please click here. 

 

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