QAD Precision News Round-Up: 26 November 2021 

In the QAD Precision News Round-Up: 26 November 2021, US ports delay surcharges; US jobless claims down; Samsung plans Texas semiconductor factory; Mulberry to expand in UK; plus trade compliance for banks and more. 

Global Trade

PORTS DELAY SURCHARGES

The ports of Los Angeles and Long Beach have delayed surcharge collections for long-dwelling containers. A proposed $100 per container per day surcharge has now been postponed two times. Originally, penalties were to take effect on November 15. The ports first postponed the date to November 22, and have done so again until November 29. 

According to the ports, they are able to delay enacting surcharges as current container volume has been reduced. Port authorities state that there has been a 26 percent reduction in dwelling containers. Conversely, a detailed analysis by the Port of Los Angeles found that containers overstaying 13 days or more days had actually increased since the prior week. The ports previously reported an all-time high of 86 vessels waiting to dock. For more information, please click here.

Employment

US JOBLESS CLAIMS DOWN

The United States jobless claims reached the lowest levels seen since November 1969. The Labor Department on Wednesday announced there are 199,000 jobless claims for last week. The number is much lower than the Dow Jones forecast of 260,000. Additionally, the new figure is significantly lower than the previous reading of 270,000. 

The decline in jobless claims is a sign of post-pandemic growth as well as seasonal adjustments. The unadjusted claims are 258,622, an increase of 7.6 percent from the week previous. Second-quarter GDP is up as well to 2.1 percent but below estimates of 2.2 percent. For more information, please see CNBC.

Technology

SAMSUNG TO INVEST IN US SEMICONDUCTOR FACTORY 

Samsung, one of the world's largest chip makers, has announced plans to invest $17 billion in a semiconductor factory in Texas amid a global shortage of chips. The new facility, which will be located outside Austin, will be the company’s largest US investment. Operations are expected to begin in 2024. According to Samsung, the new plant will boost production of hi-tech chips as well as improve semiconductor supply chain resilience. The announcement increases Samsung's total investment in the US to $47 billion. To read more about this, please see The Guardian. 

Retail 

MULBERRY TO EXPAND IN UK 

British luxury brand Mulberry has announced plans to expand its UK factory. Furthemore, the company reported that sales have rebounded to pre-pandemic levels. According to Mulberry, its UK factories enabled it to avoid the supply chain disruptions that have affected some fashion brands. 

Mulberry said its revenue grew 34 percent to £66m ($87.8m) in the six months to September 25, compared with £49m ($65.2m) in the same period in 2020. In 2019, revenue for the same period was £69m ($91.8m). The rebound helped the company make pre-tax profits of £10.2m ($13.2m)  million in the half year, compared with a £2.4m ($3.2m)loss in 2020. However, this year's figure includes £5.7m ($7.5m) from selling a lease in Paris. For more information, please click here. 

DOLLAR TREE RAISES PRICES

On Tuesday, Dollar Tree announced it is raising its prices in the first quarter of 2022. It will raise prices on the majority of its items from $1.00 to $1.25. Dollar Tree is blaming rising inflation and increasing freight and distribution costs for its decision to raise prices. Dollar Tree hopes it can broaden its offerings with the price hikes. It previously had to stop selling some “customer favorites” because of high product costs. For more details, please visit CNN.

Carriers 

DPD TRIALS AUTONOMOUS DELIVERY IN THE NETHERLANDS
DPD Netherlands and Cleveron, the Estonian-based technology company, have partnered to trial autonomous vehicle delivery in Eindhoven, the Netherlands. Cleveron’s robot courier, Cleveron 701, is the first unmanned autonomous delivery vehicle in Europe that is licensed to be employed on public streets. Moreover, the vehicle is designed as a multi-purpose delivery platform, allowing the operator to add suitable modifications depending on delivery needs.

In robotic courier services, teleoperators assist autonomous robots in managing tricky situations in traffic. The Cleveron’s technology advances, one teleoperator will manage a fleet of 10 autonomous delivery vehicles. This will significantly reduce last-mile delivery costs. For more information, please click here. 

QAD Precision News

TRADE COMPLIANCE FOR BANKS AND FINANCIAL INSTITUTIONS

Financial institutions and banks must deal with some unique and complicated global trade compliance requirements. This is a requirement set by international and national organizations, such as the European Union and the US Federal government. These bodies are deeply concerned about ensuring money that crosses international borders – through financial transactions, shipment of funds, and so forth – is not being used to support criminal activity, terrorism, the spread of nuclear weapons and other such activities.

In response, government organizations have adopted a complex web of rules. Trade regulations, export controls, embargoes and sanctions come into play in international transactions. Some of the most critical trade compliance challenges facing the financial industry include OFAC regulations, global trade compliance and licensing requirements. In this QAD Precision Report we look at the challenges of compliance for banks. To read the full report, please click here. 

QAD PRECISION SOFTWARE UPGRADE ENHANCES SUPPLY CHAIN VISIBILITY AND CONNECTIVITY

SANTA BARBARA, Calif.--(BUSINESS WIRE)--QAD Precision, an industry-leading provider of global trade management and transportation execution software, has announced the newest release of its Global Trade and Transportation Execution (GTTE) solution, with capabilities to simplify and enhance global import and export processes. The upgrades will improve visibility and connectivity of operations throughout the supply chain. QAD Precision is a division of QAD Inc. For more information, please click here.