In the QAD Precision News Round-Up: 28 February 2020, Macy’s to
close 125 stores; FedEx delivers critical medical supplies to China;
UPS to expand at Memphis airport; UK warns it could walk away from
trade talks; plus how global trade and transportation solutions help
mitigate supply chain impacts of Covid-19 and more.
FedEx Express has donated the use of its global transportation
network and logistics services to transport crucial medical supplies
to China. FedEx delivered eight shipments on 20 February, totalling
197 pallets of humanitarian aid to China on behalf of Direct Relief.
These shipments include face masks, surgical masks and more than
460,000 medical supplies. For more details, please see BioSpectrumAsia.
UPS has announced a $216 million expansion at its facility at the
Memphis International Airport, Tennessee. As a result, the expansion
will add a further 1.1 million square feet of land to the 5.9 million
square feet it currently leases from the airport. The new area will
house facility support and trailer parking. Furthermore, UPS also
recently announced a $1.4 billion investment in Pennsylvania. This
will include a new “super hub” in Harrisburg. For more details, please
Over the next three years, Macys will close 125 stores. Moreover, as
part of the closures, the retail department store plans to eliminate
approximately 2,000 positions from both its retail and corporate
offices, a figure that represents nearly 9 percent of its total
workforce. Macy’s intends to close its stores in low-tier malls around
the US in order to prioritize its more successful locations. For more
information, please see click here.
British Prime Minister Boris Johnson has warned that the UK could
walk away from trade talks with the EU if progress is not made by
June. The British government has stated its plans for the talks ahead
of the first round of negotiations on Monday and "will not
negotiate any arrangements in which the UK does not have control of
its own laws and political life". UK/EU trade will revert to
World Trade Organization rules as a consequence of a no deal outcome.
Whatever the outcome, the British government has warned businesses to
expect delays at borders. For more information, please see RTE.
On Friday, UK shares fell sharply. Both benchmark indexes entered
correction territory. This was as a result of fears that the
coronavirus could become a pandemic and cause a global recession. The
FTSE 100 fell 3.2 percent, making it on track for its worst week since
the global financial crisis of 2008. In addition, the FTSE 250
declined by 2.5 percent, also seeing its biggest weekly decline since
2008. For more information, please see Reuters.
On Thursday, National Retail Federation CEO Matthew Shay stated that
some of the supply chain disruption in China is subsiding. Coronavirus
has caused severe disruptions to many industries that rely on
manufacturing in China. Mr Shay stated that “A number of the larger
companies have started to indicate that the signs that they’re getting
from the Chinese market is some of the production is coming back
online.” In addition, Mr Shay said that the extent of the coronavirus
outbreak in the US is as yet unclear and how this will impact consumer
demand. For more information, please see CNBC.
COVID-19, as the world is now discovering, is a blistering advocate
in democratising pandemic fear. The virus has also caused an
unparalleled upheaval for global businesses dependent on fragile
This Monday, the Dow Jones Industrial Average dived more than 1,000
points. Investors feared that COVID-19 will depress global economic
growth, making Monday the worst day for the stock market in two years.
Financial markets are likely to face additional pressure if the virus
continues to proliferate.
The extension of the Chinese Lunar New Year holiday caused chaos for
factories depending on components from Chinese factories. So much so
that Jaguar Land Rover reportedly resorted to flying in parts from
China in suitcases. COVID-19 is also impacting the consumer
electronics industry. Apple predicted global iPhone shortages and
warned shareholders that revenues will be impacted. These are just two
examples. Make no mistake, the world’s supply chain is reeling from
the enforced shutdown by the Chinese authorities. In this QAD
Precision Report, Mark Gallivan looks at how automated trade and
transportation solutions can help enterprises respond to sourcing
challenges. To read the full report, please click here.
SANTA BARBARA, Calif.--(BUSINESS WIRE)--QAD Precision, an
industry-leading provider of global trade compliance and
transportation execution software, has announced the release of a
USMCA Benchmark Tool that supports companies checking their readiness
to comply with the rules of origin in the new United States - Mexico -
Canada Agreement (USMCA). QAD Precision is a division of QAD Inc.
(Nasdaq: QADA) (Nasdaq: QADB).
“Goods that qualify for preferential duties under NAFTA may no longer
be eligible once the USMCA comes into force. The opposite may also
apply. There are significant changes related to preferential rules of
origin, including changes to Regional Value Content, substantial
transformation, and the de minimis threshold to name a few,” said QAD
Precision President Corey Rhodes. Please see the full press release here.