In the QAD Precision News Round-Up: 31 May 2019, US imposes tariffs on all imports from Mexico; China may restrict US access to rare earths; FedEx plans 7 day delivery from 2020; online shopping spend soars in Australia; and we look at desktop shipping for banks.
US TO IMPOSE TARIFFS ON ALL IMPORTS FROM MEXICO
On Thursday, US President Donald Trump announced plans to impose a 5 percent tariff on all imports from Mexico. The tariffs will steadily increase to a cap of 25 percent between June and October. President Trump tweeted that the tariffs will remain until such time that Mexico stops migrants illegally entering the US. A White House statement clarified Washington’s position: “If the illegal migration crisis is alleviated through effective actions taken by Mexico, to be determined in our sole discretion and judgment, the Tariffs will be removed.” President Trump also began the process of ratifying the USMCA, the Nafta replacement free trade agreement with Mexico and Canada, on Thursday. Mexico’s President Andres Manuel Lopez Obrador released a letter in response to the tariff announcement. He wrote that he does not want “confrontation” and hopes that the US and Mexico and “look for other alternatives to the migration problem.” For more on this, please click here.
CHINA MAY RESTRICT SALES OF RARE EARTHS TO THE US
This week, Chinese newspapers warned that China may use its dominant position as an exporter of rare earths as leverage in the trade war with the US. Rare earths — a group of 17 chemical elements — are necessary for high tech products, including consumer electronics and military equipment. Beijing has not officially stated that it plans to restrict the sale of rare earths to the US. However, Chinese media has strongly implied that such a move is likely. For more information, please see Reuters.
FEDEX TO DELIVER 7 DAYS A WEEK FROM 2020
This week, FedEx Corp. announced that it will offer seven day delivery in the US from January 2020. The move is to meet the demands of e-commerce. In addition, FedEx is making operational changes for the handling of large items such as televisions, furniture and car parts. Raj Subramaniam, president and chief operating officer of FedEx Corp, stated that average daily volumes of small parcels in the US should double by 2026. Furthermore, FedEx Ground is also making changes to its last-mile deliveries by integrating almost two million FedEx SmartPost packages into its operations. The US Post Service previously handled these residential deliveries. For more details, please click here.
ONLINE RETAIL SPEND GREW 24 PERCENT IN AUSTRALIA IN 2018
This week, Australia Post announced that online retail spending increased by 24 percent in 2018. The research by Australia Post found that Australians spent A$27.5 billion in 2018 — 24 percent more than in 2017. The yearly Inside Australian Online Shopping Report also found that online shopping now makes up 10 percent of all retail sales in Australia. Australians have also increasingly turned to smartphones to make purchases. Mobile was the channel of choice for 26 percent of all retail e-commerce purchases last year. The most popular items are clothing, making up more than a third — 35 percent — of all purchases. For more information, please click here.
QAD Precision News
FOUR REASONS BANKS AND FINANCIAL INSTITUTIONS NEED DESKTOP SHIPPING SOLUTIONS
Banking and financial institutions are among the world’s largest shippers of documents and parcels. In spite of the growth of digital technologies, the need to ship physical documents to banking and finance customers and between institutions has only grown. The law requires customers to sign many important documents on paper. These include credit contracts, loan documents and other critical financial documents. In addition, banks must deliver final, physical copies to all parties. As a result, banks generate and move a lot of paperwork. These costs add up quickly. Other important areas of concern for banks and financial institutions are regulatory compliance and shipment security. In this QAD Precision Report we discuss how desktop shipping can help banks provide excellent customer service and confidentiality, as well as remain compliant and control costs. To read the full report, please click here.
QAD ANNOUNCES EXPANSION IN LIMERICK AND DUBLIN
QAD and QAD Precision made the Irish news this week with the announcement of staff expansions in our Limerick and Dublin operations. The new roles will bring the total number of staff in Ireland to over 140. Plus, QAD in Limerick recently moved into new, larger offices in Clive House at the National Technology Park in Limerick. QAD Precision in Dublin will also be moving in June to significantly larger premises to accommodate our growing staff. You can read more about this on RTE and on IDA Ireland.
LET’S KEEP IN TOUCH
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