Being a new year, we thought it a good time to review the shifting paradigms we are expecting in 2022.All are ongoing trends and worthy of mention. Growth in the global economy will continue and inventory levels at the start of this year are still relatively low.Pandemic predicting is a bit of a crap shoot but the effects of omicron variant will be felt at least until Q2.
Topics: 2022 e-commerce logistics trends
Perhaps one of the biggest questions we get from new shippers concerns the calculation of volume weight. Even experienced shippers are sometimes surprised to find they are charged for a higher weight than what the shipment actually weighed.
The explosion of packages under the Section 321 de minimis threshold is the target of the US government as well as traditional American retailers. Most of these packages are generally from China, and specifically from Temu and Shein. Without duty, this "de minimis import process" is viewed by many as a loophole.However the import processes for the vast majority of these products seem to adhere to existing US Laws (I say "seem to" as there is a lack of data to know for sure).
The Office of Inspector General report shows the U.S. Postal Service racing to put significant resources towards what will certainly be another record for parcel delivery. While the actions show significant progress, the is an acknowledgement that the the resources may not be in place to handle the deluge of packages.
The United Kingdom is a the leading market for Canadian companies. Trade to the UK is made stronger by the UK -Canada Trade Continuity Act. Yet, free trade to the UK often does eliminate import fees. All consignments to the UK are subject to duty, value add tax and other import fees.
Amazon is ..well.. Amazon. And their FBA service is in demand from the UK. In fact, too much demand. Amazon has reached inventory limits and delayed fulfillment centre receiving times. Shippers in the USA and Canada are exploring shipping individual online orders direct from Canada and the USA to UK (and European) consumers.
New York and Canada share a strong economic connection via a common land border and USMCA/ CUSMA free trade. New York is a significant exporter to Canada sending over $16 billion worth of merchandise each year. The state exports a variety of other goods, including pharmaceutical products, mineral fuels, and aircraft and machinery.
Jet Worldwide helps New York companies connect with Quebec, Ontario and across Canada with best in class logistics support.
Traditional trade patterns and processes have been disrupted by electronic commerce technologies that are both boundless and borderless. The traditional role of logistics of serving the aggregators (i.e. bulk wholesale transactions) is being supplanted by zillions of individual orders being made globally.
Topics: cross border e-commerce parcels
