QAD Precision News Round-Up: 28 February 2020

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. 

Carriers

FEDEX DELIVERS CRITICAL MEDICAL SUPPLIES TO CHINA 

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 TO EXPAND AT MEMPHIS AIRPORT 

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 see Supply Chain Dive. 

Retail 

MACYS TO CLOSE 125 SORES 

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. 

Global Trade

UK THREATENS IT COULD WALK AWAY FROM TRADE TALKS 

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.

LONDON STOCKS FALL AS AS FEARS OF PANDEMIC INTENSIFY 

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. 

SUPPLY CHAINS BEGINNING TO COME BACK ONLINE IN CHINA 

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.

QAD Precision News

CORONAVIRUS: HOW GLOBAL TRADE AND TRANSPORTATION SOLUTIONS HELP MITIGATE SUPPLY CHAIN IMPACTS OF COVID-19

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 supply chains. 

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. 

QAD PRECISION RELEASES UNITED STATES - MEXICO - CANADA AGREEMENT (USMCA) BENCHMARK TOOL

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.