As hurricane season in the Atlantic basin is currently at its peak, companies with operations along the country’s Atlantic coast are advised to map and visualize the key locations in their supply chain network to gain a comprehensive overview of where they operate, source from, and which transportation hubs are frequently used. A better understanding of key supply chain chokepoints will help to assess the potential impact upcoming storms may have on business operations, including their risks to individual shipments, products, facilities, and revenue.
American Airlines plans to cease flights to 15 smaller U.S. cities because of low demand, beginning the first phase of dropping markets from its network as the coronavirus pandemic keeps millions of flyers off planes.
Whether it’s a reduction in air or ocean capacity, or inventory management challenges, it’s safe to say there’s a lot of stress on supply chains today. Proactive planning and forecasting can make a big difference in how you approach peak season, even in the midst of a global pandemic. Staying flexible and adapting quickly whenever possible is key to success. Finally, work with a provider that can reliably meet all of your logistics and technology needs, today and in the future.
FedEx Corp. is joining a rush to apply extra holiday fees on high-volume shippers as couriers brace for a new jump in residential deliveries during the year-end peak season.
Surcharges on regular shipments to homes will range from $1 to $5 from Nov. 2 to Jan. 17, FedEx said on its website Aug. 18. That marks the first time since 2016 that the company has applied special peak-season fees, and the move follows similar efforts by UPS Inc. and the U.S. Postal Service.
From Nov. 15 to Jan. 16, 2021, surcharges on Ground, SurePost and domestic Air services will increase to between $1 and $4 per package, depending on the shippers’ parcel volume — at a minimum tripling the surcharges put in place as of May 31 due to the pandemic. The surcharges for each service are organized in three tiers, based on the increase in parcel volume compared to February 2020. Shippers that experienced increases of 300% or more will pay the highest fees: $3 per package for SurePost and Ground and $4 per package for Air service.
The planned temporary price adjustments are in response to increased expenses and heightened demand for online shopping package volume due to the coronavirus pandemic and expected holiday ecommerce. As a result of these changing market conditions, the Postal Service is planning a time-limited price increase on all commercial domestic competitive package volume from Oct. 18 until Dec. 27, 2020. Retail prices and international products will be unaffected.
The emergency declaration, set to expire Aug. 14, has been extended to Sept. 14 and applies to all 50 states and the District of Columbia. It has been expanded to include emergency restocking of distribution centers and stores.
Specifically, the agency’s declaration is limited to the transportation of:
- Livestock and livestock feed.
- Medical supplies and equipment related to the testing, diagnosis and treatment of COVID-19.
- Supplies and equipment necessary for community safety, sanitation and prevention of community transmission of COVID-19 such as masks, gloves, hand sanitizer, soap and disinfectants.
- Food, paper products and other groceries for emergency restocking of distribution centers or stores.
While the USMCA retains a similar structure to NAFTA, hence the nickname NAFTA 2.0, changes to rules of origin (ROO) requirements, labor enforcement, de minimis levels and a new Sunset Clause will have wide-ranging impacts for shippers going forward.
If supply chain managers prepared for the shift in advance, establishing visibility into their supplier networks for example, they’ll be well positioned to take advantage of the agreement’s trade streamlining benefits, Gould said. Managers left with more questions than answers when the law takes effect on Wednesday can begin bracing for impact in the four aforementioned areas.
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