In the QAD Precision News Round-Up: 9 April 2021, US trade deficit
high; IMF forecasts strong global recovery; UK retail footfall down;
UPS to buy eVTOL aircraft; DHL launches carbon-neutral service; plus
the benefits of foreign trade zones; and QAD acquires FTZ Corp.
In February, the US trade deficit hit a new high. Economic output is
recovering as a result of the vaccine rollout and the stimulus
package. On Wednesday, the Commerce Department reported that the trade
deficit surged to 4.8 percent to a record $71.1 billion in February.
In addition, the US also experienced the highest goods trade gap on
record. In the same period, exports declined by 2.6 percent to $187.3
billion while goods exports fell 3.5 percent to $131.1 billion.
Imports decreased 0.7 percent to $258.3 billion and imports of goods
fell 0.9 percent to $219.1 billion. For in-depth coverage, please see
The International Monetary Fund is now forecasting stronger activity
for 2021 and 2022 compared to what it projected at the beginning of
this year. The new global forecasts predict growth of 6 percent in
2021 and 4.4 percent next year. The IMF predicts that the UK economy
will rebound to its pre-pandemic level of activity in late 2022. The
updated UK forecast estimates growth of 5.3 percent this year and 5.1
percent in 2022.
According to the IMF, recoveries are diverging dangerously within and
between countries. Those with slower vaccine deployments, limited
support from economic policy, and countries who are dependent on
tourism are likely to perform less well. You will find more details on
this news item at BBC News.
In March, retail footfall in the UK declined by almost 70 percent
year-on-year. However, this was a 4.9 percent improvement from the
previous month. According to the British Retail Consortium (BRC), this
is above the three-month average decline of 72.3 percent. High street
footfall decreased by 64.6 percent. Footfall in retail parks dropped
by 36.8 percent, while shopping centre footfall declined by 73.2
percent. Northern Ireland had the least footfall decline across all
regions at 56.4 percent, followed by Scotland at 66.3 percent and
England at 68.7 percent. For more information on this story, see Retail
In the US, DHL eCommerce Solutions has relaunched Expedited Max as a
carbon-neutral service by offsetting all Expedited Max CO2 emissions.
Furthermore, DHL also announced that all US flats and parcel shippers
will be able to access their own carbon emissions report. This report
will give DHL customers visibility into weekly and monthly emissions
produced by their shipments. For more details on this news item,
please see Parcel
and Postal Technology.
UPS is to buy 10 electric vertical takeoff and landing aircraft,
known as eVTOLs. UPS announced it will purchase the eVTOLs from Beta
Technologies. The carrier will use these in its Express Air network
under the UPS Flight Forward division. Beta Technologies will deliver
the aircraft in 2024, pending authorization from the Federal Aviation
Administration. The eVTOLS have an impressive range. The vehicle can
fly up to 250 miles at 170 mph on one charge. UPS plans to use these
aircraft in smaller markets. For more details, please see CNBC.
In January Joe Biden was inaugurated as the 46th president of the
United States. The US is the world’s largest economy. Given this, any
new administration is carefully watched by leaders around the world.
A new president can mean changes to US global trade and/or foreign
policy — issues that reverberate far beyond the US. As the expression
has it, “When America sneezes, the world catches a cold.”
One issue that the world will be watching closely is how US-China
relations might change with the new administration.
President Biden has stated that he will not
be repealing the so-called “Trump tariffs” — at least not
immediately. Furthermore, his pick for US Trade Representative,
Katherine Tai, has long taken a tough stance on China.
Tariffs were a defining characteristic of former President Trump’s
administration. However, tariffs have long been a strategy that US
presidents have deployed when it comes to trade. Former presidents,
Barack Obama and George W. Bush both used tariffs to achieve specific
goals. Like President Trump, and now President Biden, these tariffs
were not always welcomed by the business community. In this QAD
Precision Report we look back at tariffs instituted by recent US
presidents, and examine the benefits of foreign trade zones. You can
access the full report here.
SANTA BARBARA, Calif. — (BUSINESS WIRE) — QAD Inc. (Nasdaq: QADA)
(Nasdaq: QADB), a leading provider of flexible, cloud-based enterprise
software and services for global manufacturing companies, today
announced it has acquired Foreign-Trade Zone Corporation (FTZ Corp.),
a leading provider of cloud-based Foreign-Trade Zone (FTZ) software
and consulting services based in Mobile, Alabama. QAD expects to
integrate FTZ Corp. into QAD Precision, the company’s global trade and
transportation division. For more details, please click here.