The Friday Report: September 25th, 2020

Newly Released 3PL Survey Reveals Need for Technology and Risk Management

As we have watched in real time over the past year, the vulnerability of modern supply chains has become visible.  The need for effective risk management and more technology has become painfully apparent.

With the release of an annual study regarding the third-party logistics industry, the 2021 3PL Study examines the impact of COVID-19 on supply chains and compares the perspectives of shippers with that of 3PLs.   As in past years, outsourced supply chain activities primarily have focused on transactional relationships between shippers.  This year’s study indicates that more shippers are predicting that strategic relationships with 3PLs would increase.

Survey respondents aligned in their nearly unanimous belief that “supply chains are evolving into complex networks”.  The survey also revealed that 3PLs have continued to increase their use of mobile technologies including Smartphones, tablets, wearable devices and other types of handheld devices.  Shippers revealed their utilization of technology for both supply and demand planning sales/operations as well as capacity.

Most companies surveyed indicated that they had experienced at least a 25% drop in supply chain operations.  A total shutdown was experienced by 6% of respondents.

For more details, please continue reading here.

U.K. Anticipates Supply Chain Disruptions in January 2021 Following EU Exit

As the U.K. transitions out of the European Union on January 1, 2021, concerns have arisen of the potential for the formation of lines of up to 7,000 port-bound trucks readying to cross the English Channel.  According to a letter that the British government sent to businesses this week, this may result in freight delays of up to two days.

Following the end of the current transition period, all freight will be required to meet the standard of EU third country control requirements.  This had not been previously required when traveling between the U.K. and the EU. The U.K. estimates that somewhere between 40% to 70% of the trucks heading to the EU would not be ready on the first day after this transition.  Although it is anticipated that disruption could be lower in the early days of January, the government anticipates possible sustained disruption over the following two weeks or more.

For more details, please continue reading here.

U.S. Backs Down on 10% Canadian Aluminum Tariff

Just a few hours before the Canadian government was poised to make an official statement announcing sanctions against the U.S. for its imposition of aluminum tariffs, news came from the U.S. Trade Representative, revising the tariffs.  In August, the U.S. issued an advisory of the imposition of 10% duties on all aluminum products imported from Canada.

The newly announced policy is that the United States will only charge 10% tariffs if the monthly aluminum imports “spike unexpectedly”.  This means that if shipments for a specified month are over 105% of the “expected values”, then the U.S. will retroactively impose a 10% tariff on all shipments made during that month.

The Canadian government subsequently announced that it would not continue with its plans for the imposition of “dollar-for-dollar trade countermeasures” and announced that Canada “is not a threat to U.S. national security” and will continue in its tradition of mutually beneficial aluminum trade .

For more details, please continue reading here.