Global Trade
US AND CHINA TO ASSESS PHASE ONE TRADE DEAL
On August 15, a six month assessment of the US and China phase one trade deal between will take place. US Trade Representative Robert Lighthizer and Chinese Vice Premier Lui He will attend the meeting. Both are likely to discuss mutual grievances as tension between the two countries continues to rise. Under the deal, China committed to increase the purchase of US goods by approximately $200 billion. However, due to the coronavirus pandemic, China is well below its first-year target of a $77 billion increase. For more information, please see CNBC.
UK ECONOMIC SHOCK OF CORONAVIRUS TO BE LESS SEVERE THAN EXPECTED, BOE
The Bank of England has said the economic shock caused by Covid-19 will be less severe than anticipated, despite alerts of a weaker recovery and damages to jobs and growth. According to Threadneedle Street’s monetary policy committee (MPC), Britain's economy will contract by a fifth in the first half of this year. Furthermore, unemployment will double to 2.5 million by the end of 2020. However, as lockdown measures become more relaxed, it said the early signs of economic recovery are more promising than previously expected. For more details, please see The Guardian.
Carriers
FEDEX AND UPS SEE SURGE IN PARCEL VOLUME
Amid the coronavirus pandemic, FedEx and UPS have seen surges in package volumes. Both shipping companies have experienced demand similar to holiday shopping season. FedEx Express and FedEx Ground’s combined average daily package volume was 16.5 million, a 10 percent increase on the year-before quarter. On average, UPS delivered 24.4 million packages per day, an increase of 21 percent compared to year-before quarter. For more information, please see The Commercial Appeal.
UPS BEGINS CONSTRUCTION OF VACCINE FREEZER FARMS
UPS is constructing two freezer farms to store millions of vials of a Covid-19 vaccine, in preparation for the day when it will need to transport the medicine across the world. The facilities will be located in Louisville, Kentucky, and in the Netherlands, near UPS air hubs. The freezer farms will contain 600 deep-freezers that can each store 48,000 vials of vaccine at temperatures as low as -80 Celsius (-112 Fahrenheit). For more information, please see Supply Chain Brain.
DPD AND VOLTA TRUCKS PARTNER FOR 24 HOUR DELIVERY IN LONDON
DPD and Scandinavian start-up full-electric vehicle manufacturer, Volta Trucks, are collaborating to pilot test the company's Volta Zero vehicle. The test will take place within London’s Ultra Low Emission Zone in the first quarter of 2021, supporting DPD’s micro-depot strategy in Westminster. Volta Trucks CEO Rob Fowler said that the Volta Zero was designed to deliver packages and freight in inner city areas and offers a near-silent operation. As a result, DPD will be able to use the Volta Zero to operate a 24 hour delivery service in the centre of London. For more details, please see Post and Parcel.
Logistics
STRONG LOGISTICS GROWTH IN JULY
In July, economic activity in logistics and warehousing continued to recover. According to the Logistics Manager’s Index, the industry has rebounded from an April low to its highest level in 18 months. Last month, the LMI reached 63, an increase from April’s all-time low of 51.3. This high has pushed the index into levels the industry has not experienced since early 2019. For more details, please see DC Velocity.
QAD Precision News
3 MINUTE EXPLAINER: WHAT IS DESKTOP SHIPPING SOFTWARE?
Desktop shipping software — as the name suggests — allows you to ship packages from your desktop computer. Of course, it has long been possible to open up a carrier webpage and ship a package. However, desktop shipping software is a multi carrier small package shipments and export compliance solution. This allows organizations to:
- Control parcel shipping spend
- Standardize shipment procedures
- Automate trade compliance
Banks, universities, legal offices, public institutions and other organizations use desktop shipping software to control non-production shipping.
Most companies have shipping procedures in place to control production shipping. However, front offices and administrative units often ship parcels on an ad hoc basis. As a result, a company can have little control or visibility over what is being shipped and how these shipments are being made. Furthermore, even if guidelines are in place, it can be difficult to ensure compliance with these — particularly if a company has many locations.
These costs can quickly add up, especially if staff use expensive premium services as a default. In addition, front office staff may unwittingly violate export regulations or other restrictions, leaving a company vulnerable to fines and reputational damage. In this week’s 3 Minute Explainer, we discuss five major benefits of controlling non-production shipping with desktop shipping software. To read the full report, please click here.
