In the QAD Precision News Round-Up: 8 March 2019, US ends zero tariffs for India and Turkey; Tesla to sell online exclusively; Amazon rethinks its store footprint; LK Bennett collapses; and C.H. Robinson buys Space Cargo. Plus we look at why 3PLs need multi carrier shipping software.
US TO END PREFERENTIAL TRADE WITH INDIA AND TURKEY
This Monday, US Trade Representative Robert Lighthizer announced plans to end preferential access to the US for goods from India and Turkey. Within 60 days goods from these countries will no longer qualify for zero tariffs. Ruhsar Pekcan, Turkey’s trade minister slammed the decision. She claimed this would harm US manufacturers by raising costs. However, she also stated that Turkey still plans to increase trade with the US. India said it would accept the decision without negotiation. For more details, please see The Washington Post.
C.H. ROBINSON ACQUIRES SPACE CARGO
This week, logistics giant C.H. Robinson announced the acquisition of the Space Cargo Group. Space Cargo provides international freight forwarding and customs brokerage, as well as other logistics services in Spain and Colombia. C.H. Robinson paid around €42 million in cash for the company. You can read more about this here.
TESLA TO CLOSE SHOWROOMS
Carmaker Tesla plans to close all of its showrooms globally and move to online sales exclusively. The company hopes to reduce overheads and sell the Model 3 car at a lower price to boost sales. Last year, Tesla sold 78 percent of its Model 3 cars online. Tesla does not sell cars directly through showrooms. However, the carmaker has battled several lawsuits in the US because of its showrooms. Laws in 48 states ban or restrict automotive manufacturers from selling their own vehicles. As a result, most sell through independent dealer networks. For more details, please see Automotive Logistics.
AMAZON CLOSES POP-UPS BUT EXPANDS RETAIL FOOTPRINT
This week, the New York Times reported that Amazon is closing down dozens of Pop-Up kiosk stores across the US. However, the e-commerce giant also plans to expand its bricks-and-mortar retail footprint. Amazon released a statement outlining its intentions. “After much review, we came to the decision to discontinue our Pop-Up kiosk program, and are instead expanding Amazon Books and Amazon 4-Star, where we provide a more comprehensive customer experience and broader selection,” said a spokesperson for the company. For more details, please click here.
LK BENNETT GOES INTO ADMINISTRATION
This week, high-end UK retailer LK Bennett went into administration. The most recent set of accounts revealed that the company made a £5.9m loss in the year to July 2017. EY will carry out the administration and will look for a buyer. The Duchess of Cambridge is a fan of the brand, and is frequently photographed wearing LK Bennett dresses and shoes. For more information, please click here.
QAD Precision News
WHY LOGISTICS PROVIDERS NEED MULTI CARRIER SOFTWARE
The world of logistics has changed. Smaller shipments, going to more places, with more carriers, more often, is now the new normal for most 3PLs. Logistics providers are just as likely to ship small packages via parcel carriers as they are to ship bulk freight. This trend is likely to continue. Global parcel shipping volumes are forecast to surpass 100 billion parcels by 2020.
More parcel shipping, more carriers, and more destinations means lots more hassle for 3PLs. These changing market conditions mean that a comprehensive multi carrier shipping solution is increasing important for 3PLs. In the latest Precision Report we look at how vastly increased parcel volumes makes multi carrier shipping software critical for 3PLs. To read the full report, please click here.
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