QAD Precision News Round-Up: 1 October 2021

In the QAD Precision News Round-Up: 1 October 2021, UK opens talks to join CPTPP; UK fuel stations run dry; US and EU officials discuss trade and China; FedEx is testing autonomous trucks; Boohoo’s shares drop; plus choosing a multi carrier solution and more.

Global Trade

UK OPENS TALKS TO JOIN CPTPP

This week, the UK joined a virtual meeting with the members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to discuss joining the free trade agreement. CPTPP currently has 11 members, including Canada and Mexico in North America; Chile and Peru in South America; as well as Australia, Japan, Malaysia and New Zealand in Asia-Pacific. The UK’s newly appointed International Trade Secretary, Anne-Marie Trevelyan, said that this meeting represented a “big milestone” for the UK’s admission to the trade deal. For more information on this news item, please visit Sky News.

UK FUEL STATIONS RUN DRY

On Monday, many gas stations across the UK sold out of fuel and began rationing sales. The Petrol Retailers Association’s member fuel retailers estimated that 50 to 90 percent of pumps had no fuel in some areas. Despite this, the government and fuel retailers are assuring customers there is plenty of fuel. Furthermore, the UK government has tried to discourage panic buying to ensure the fuel supply can meet the needs. However, the fuel shortage is highlighting another issue affecting supply chains, the shortage of truck drivers. Industry experts estimate the deficit to be around 100,000 drivers, caused by COVID-19 and Brexit. In an effort to close the gap, the government will issue 5,000 temporary visas to foreign truck drivers. For more information, please click here.

Update:

Following on from this, on Thursday, almost 50 percent of independently owned UK fuel stations were out of at least one type of fuel. According to the Petrol Retailer Association, which represents 65 percent of the UK’s fuel stations, 27 percent of its members had run dry. Furthermore, an additional 21 percent, were out of at one type of fuel, such as unleaded petrol or diesel. To read the details, please see The Guardian.

US AND EU UNITE TO FACE OFF COMPETITION FROM CHINA 

This week, on Wednesday, US and European Union officials met to discuss issues facing the trans-Atlantic alliance. Representatives for both sides attended the inaugural US-EU Trade and Technology Council (TCC) in Pittsburgh, Pennsylvania to discuss trade disputes, regulatory procedures, and develop rules for emerging technologies. Europe and the United States aim to present a united front as China gains market share in global markets. For more details, please see CNBC. 

Carriers 

FEDEX TESTING AUTONOMOUS TRUCKS

FedEx has partnered with autonomous technology developer, Aurora and heavy-duty vehicle manufacturer, Paccar to pilot autonomous delivery trucks. FedEx is using Paccar trucks with Aurora’s Autonomous Vehicle Platform (AVP) for its line haul trucking operations. FedEx began testing the program on September 22 on its routes between Dallas and Houston. The trucks run the route multiple times a week with a backup driver and cover nearly 800 kilometers each round trip. The partnership aims to deliver efficient transportation combined with technology on a large scale. For more details, please click here.

Retail

ONLINE RETAILER BOOHOO LOWERS GUIDANCE

This week, UK online retailer Boohoo lowered its full year sales guidance. Shares dropped 11 percent as a result of disruption in the supply chain as well as competition from reopened high street stores. In addition, shipping costs also impacted Boohoo. The retailer experienced an increase of £26 million in two years. 

However, to place this in context, the online retailer’s revenue soared 20 percent in the six months to August. Over the course of the pandemic, sales soared as high street retailers closed their doors. The company also forecast sales growth of between 20 to 25 percent. Previous guidance had predicted a 25 percent growth. However, higher costs are likely to impact Boohoo’s profit margins. For more details, please click here.

QAD Precision News

CHOOSING A GLOBAL MULTI CARRIER SHIPPING SOLUTION: 3 QUESTIONS TO ASK

The global express and small parcels market has experienced significant growth in the last decade — only to explode in 2020 once the pandemic hit. 

Last year, over 131 billion parcels were shipped across 13 major markets.  To put that into perspective, that is 4,160 parcels every single second. Forecasts suggest that volumes are likely to double within five years to 266 billion parcels shipped in 2026.

Unsurprisingly, much of the growth is due to online shopping. Consumers have not only embraced online shopping, they are looking beyond their borders too, increasing the need for international parcel shipping.

Equally importantly, e-commerce has changed customer service expectations. Across a variety of industries — not just retail — customers want and expect the same service they receive when they shop online. That includes prompt delivery. As a result, more small parcel shipments, going to more domestic and global locations, are becoming the norm for many enterprises.

Multi carrier shipping software helps organizations control shipping costs and meet customer expectations. In this QAD Precision Report we look at 3 questions to ask when evaluating multi carrier solutions for global parcel shipping operations. To read the full report, please click here.

[LIVE WEBINAR] GOT PALLETS? LEVERAGING FEDEX FREIGHT WITH QAD PRECISION

Did you know that QAD Precision supports FedEx Freight? 

Join us for a live webinar on Thursday, 7 October, 2021 at 10am EST where industry experts Teresa Exum of FedEx and QAD Precision’s Michael Tew discuss benefits of using FedEx Freight and how QAD Precision customers can leverage this service.

Register Now

MADE IN THE USA: THE U.S. FOREIGN-TRADE ZONES PROGRAM CONTRIBUTES TO THE COMPETITIVENESS OF U.S. INDUSTRY

This week, QAD Precision’s Greg Jones, a highly regarded expert on the US Foreign-Trade Zones program published an article in Trade and Industry Development. Greg looks at how the FTZ program has helped companies in strategically important industries including automotive, energy production, and pharmaceuticals, among others. To read the article, please click here.