QAD Precision News Round-Up: 4 June 2021

In the QAD Precision News Round-Up: 4 June 2021, UK and Australia seek trade deal by mid-June; Euro zone inflation surges in May; US sets and suspends tariffs on six countries; FedEx expands e-commerce delivery; plus multi-carrier shipping for 3PLs and more. 

Global Trade 

UK AND AUSTRALIA SEEK TRADE DEAL BY MID-JUNE

Following another round of negotiations, the British envoy announced on Thursday that the United Kingdom and Australia are seeking to reach a trade deal by the middle of June. Both nations have said that they are in agreement on most of the issues for a deal, which, according to official estimates, could add £500 million ($708.4 million) to British economic output over the long term. The proposed deal will assist the United Kingdom in building stronger commercial and diplomatic relations in the Indo-Pacific region and is the most advanced of several deals being sought by London. For more details, please see Reuters.  

EURO ZONE INFLATION SURGES IN MAY

In May, inflation in the Euro zone surged past the European Central Bank’s target. On Tuesday, data from Eurostat showed inflation in the 19 countries sharing the euro increased to 2 percent in May from 1.6 percent the previous month. The surge, driven by higher energy costs, was higher than the ECB’s below 2 percent target and was the highest level seen in almost three years. Furthermore, the result was also above predictions for 1.9 percent in a Reuters poll. The estimated inflation could be closer to 2.5 percent in late 2021 as the rebound from a double-dip recession caused by the pandemic and recent commodity price increases add to price pressures. For more information, please see Reuters.  

US SETS AND SUSPENDS $2 BILLION TARIFFS ON SIX COUNTRIES

On Wednesday, the US announced 25 percent tariffs on over $2 billion worth of imports from six nations over their digital services taxes.  However, it quickly suspended the duties to allow international tax negotiations to continue. The office of the US Trade Representative (USTR) approved the threatened tariffs on goods from Britain, Italy, Spain, Turkey, India and Austria. The six countries will face tariffs if international tax negotiations cannot reach a solution that prevents countries from imposing unilateral digital services taxes. The USTR official said the tariffs aim to equal the amount of digital taxes collected from US firms. For more details, please see RTE News.  

Carriers 

FEDEX EXPANDS E-COMMERCE DELIVERY SERVICES ACROSS EUROPE

FedEx has announced that it is expanding its day-definite e-commerce delivery service following the success of FedEx International Connect Plus (FICP) in January. The service is now available in Germany, France, Spain, Italy, Poland, Austria, Sweden, Belgium, the Netherlands and the United Kingdom. The expansion of its European e-commerce capabilities is a key part of FedEx’s European growth strategy. FICP will allow e-commerce businesses to offer an additional, cost-effective shipping option to their customers. Furthermore, online businesses will be able to reach consumers in Europe in 2-4 days, North America in 3 days and Asia-Pacific in 3-5 days. For more details, please see FedEx.  

DHL SUPPLY CHAIN TO USE 2,000 ROBOTS BY 2022

DHL Supply Chain has announced that it is expanding its partnership with Locus Robotics, enhancing DHL’s wider Accelerated Digitization Strategy. 

The company plans to take on approximately 2,000 assisted picking robots by 2022, which will help with picking and inventory replenishment. The robots will help to reduce time spent moving pushcars through warehouses, reduce physical strain on employees and improve picking efficiency. Markus Voss, Global CIO & COO DHL Supply Chain said the company currently uses over 500 assisted picking robots in its warehouses in the US, EU and UK. For more information, please see Post & Parcel.  

QAD Precision News 

3 MINUTE EXPLAINER: MULTI CARRIER SHIPPING SOFTWARE AND 3PLS

Shopping has changed — and with it, so has logistics. The global pandemic resulted in skyrocketing online orders. While this was an unprecedented event, online shopping has been exponentially growing every year. 

Last year, retail shoppers spent over $4 trillion online. Forecasts suggest that by 2022, more than $5 trillion will be spent on online retail shopping.

All this activity means that third party logistics providers are shipping more small parcels to more destinations than ever before. As a result, a 3PL with systems designed to manage large orders of freight will need a way to manage parcel shipments. In this 3 Minute Explainer, we look at how multi carrier shipping software benefits logistics service providers. To read the full report, please click here.