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QAD Precision News Round-Up: 28 June 2019

QAD Precision News Round Up for 28 June 2019

In the QAD Precision News Round-Up: 28 June 2019, Boris Johnson pledges Brexit by Halloween; Brexit woes for logistics firms; UPS’s new EU superhub; DHL’s reusable packaging scheme; US-China to talk trade at G20; Tesla gets aluminum tariff relief; plus freight bill auditing. 

Brexit

BORIS JOHNSON: UK TO LEAVE EU DEAL OR NO-DEAL BY HALLOWEEN 

This week, Boris Johnson, the front runner to become the next British prime minister, wants the UK to leave the EU on 31 October, even under a no-deal exit. As a result, the UK would exit the EU without a transition period. Many businesses fear this scenario; conversely, hardline Brexiteers seeking a decisive split, prefer it. Boris Johnson has pledged to “come out of the EU at Halloween.” In addition, he said that he believes Britain can retain tariff-free trade with the EU following a no-deal exit. In an interview, Mr Johnson claimed it would be “bizarre” of the EU to impose tariffs on UK exports. Mr Johnson also said that tabling a no-deal Brexit is necessary for Britain to get the outcome it wants. Nevertheless, the EU has repeatedly stated that the withdrawal agreement can not be renegotiated. For more information, please see Reuters

LOGISTICS BUSINESSES STRUGGLE TO FINANCE BREXIT PREPARATIONS 

The UK’s Freight Transport Association (FTA) 2019 Logistics Report, released this week, has found that “declining profit margins” have impacted logistics companies who are now “struggling” to fund Brexit preparations. The report

surveyed 500 freight and logistics businesses working in the UK and internationally. In addition, the report states that the unpredictability associated with Brexit is harming the logistics industry. A majority —  61 percent — of respondents claim that Brexit unpredictability is challenging the growth of their businesses. Furthermore, the survey found that 80 percent of respondents believe that the “employment status of EU workers” to be their “most pressing Brexit challenge”. For more information, please see Post and Parcel.

Carriers

UPS OPENS NEW SUPERHUB IN EINDHOVEN, THE NETHERLANDS

This week, UPS announced the opening of a $148 million automated package sorting and delivery center located in Eindhoven, the Netherlands. The facility spans 290,000ft2 and uses advanced technology that can sort 29,000 packages per hour, with the possibility of increasing this quantity to 40,000 packages per hour. UPS International President Nando Cesarone called superhubs, such as this one, “game changers”. The new facility is a part of UPS’ $2bn investment in Europe to expand the company’s network across the continent. For more information,  please see Parcel and Postal Technology International.

DHL ANNOUNCES REUSABLE PACKAGING INITIATIVE

This week, DHL — along with e-commerce merchant Otto and coffee retailer Tchibo — announced a new scheme in Germany to reduce waste and carbon emissions by introducing reusable packaging. Germany’s Federal Ministry of Education and Research have funded the three-year initiative. Customers will receive goods in reusable bags and will be able to send the packaging back to a return address. The reusable packaging is set to be introduced from the beginning of 2020.  For more information, please see Post and Parcel.

Global Trade

US-CHINA TO DISCUSS TRADE AT G20 SUMMIT 

This Saturday’s meeting between US President Donald Trump and Chinese President Xi JinPing is likely to overshadow the G20 meeting. Shinzo Abe, Japan’s Prime Minister, had hopes of using the G20 to discuss reforming the World Trade Organization, reducing plastic in the world’s oceans and empowering female workers. Moreover, the meeting comes after President Trump’s recent statement that the US may implement tariffs on an additional round of Chinese goods, valued at $300 billion. These include popular items used by US consumers, such as electronics. Experts doubt the likelihood of the two presidents reaching a substantive agreement. For more information, please see The Guardian.

TESLA RECEIVES TARIFF EXCLUSION ON JAPANESE ALUMINUM IMPORTS

This week, the US Department of Commerce approved Tesla’s request for a tariff exclusion on the import of Japanese aluminum. Tesla imports this to produce batteries for electric vehicles at its factory in Nevada. The Bureau of Industry and Security (BIS) granted the exemption for one year. According to BIS, the type of aluminium used by Tesla “is not produced in the United States in a sufficient and reasonably available amount or of a satisfactory quality.” Earlier this month, Tesla requested exemptions for items affected by tariffs on Chinese imports, which BIS denied. For more information, please see Supply Chain Dive.

QAD Precision News

FREIGHT BILL AUDIT AND PAYMENT — WHY OUTSOURCING MAY NOT BE WHAT’S BEST FOR YOUR ORGANIZATION

As volume increases and complexity of shipments travelling across several modes and types of carriers intensifies, the majority of companies prefer to outsource the auditing and payment of invoices to third party freight auditors. Auditing your freight bills makes good business sense. It can uncover significant differences between what you have been charged versus the service you received. But should you outsource this, or do it in-house? Outsourcing allows a company to free up resources and focus on their core business activities. But there are downsides too, such as the risk of malfeasance and handing over critical business data to third parties. In this QAD Precision Report we look at the pros and cons of outsourcing freight bill auditing or doing it yourself. To read the full report, please click here.

UNIVERSITY SHIPPING SIMPLIFIED: JOIN OUR WEBINAR

University researchers and administrative staff are not professional shippers. Many ship parcels on an ad hoc basis and each school or unit may use a preferred carrier for all shipments. Consequently, universities often have a poor understanding of their parcel spend. 

Join us on July 11, 2019 at 10 a.m. CDT for a 30-minute webinar where QAD Precision’s Trade Compliance & Transportation Management experts will discuss how universities can simplify shipping, control costs, limit compliance exposure and improved research chain visibility. To register for the webinar, please click here.

LET’S KEEP IN TOUCH

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