July 2018 

NEXT ROUND OF CHINESE TARIFFS TO TOP $200 BILLION

In response to China's retaliatory tariffs, U.S. Trade Representatives proposed a modification of the U.S.'s initial tariff list, adding an additional 10% duty on products from China. The annual trade value is estimated at approximately $200 billion. The list is extremely lengthy but includes a fair amount of products that impact the promotional products space.   Products include: hats and headwear, embroidery; paper dishes and cups; sacks and bags and LEDs.   The first wave of taxation began July 7 and proposed surcharges will undergo a two month review process closing at the end of August.

10% CANADIAN TARIFF ON SELECT PROMO ITEMS

The latest rounds of retaliatory tariffs from Canada have been published and includes several items with direct ties to the promotional industry.   The total value of the goods is roughly $12.8 billion U.S. dollars. A 10% countermeasure (surcharge) will be applied to the following items:  Ballpoint pens, postcards, plastic sacks and bags, tableware, assorted paper goods and others.

UNITED PARCEL SERVICE TO BEGIN SUNDAY PACKAGE DELIVERIES

Teamster negotiators say they have reached a handshake deal on a new 5-year contract with UPS that would raise pay for existing workers but also create a new category of lower-paid drivers to handle weekend deliveries. The two sides have been in talks for months in one of the biggest collective bargaining agreements in the US. The hybrid-driver role would allow UPS, which now delivers on Saturdays in some markets, to start regular Sunday delivery of packages, a service the U.S. Postal Service provides for customers such as Amazon.com.

APRIL 2018: 

PROMO INDUSTRY SALES AT 18 YEAR HIGH:

The annual Promotional Products Association International (PPAI) industry sales analysis reports that promotional products industry sales for 2017 increased 9.31 percent, totaling $23.3 billion. That's the highest sales volume in 18 years. PPAI attributed the increased growth to two main factors: online sales and sales of products from non-industry providers (such as Walmart and CafePress). Non-industry providers accounted for about $3.4 billion in product sales (14% of the total dollar volume). Online sales and e-commerce will continue to increase as smartphone usage and capabilities grow. Total online sales increased by 28.1 percent, reaching $5.3 billion.

 PORT OF LOS ANGELES MOVES 10 MILLION CONTAINERS:

The Port of Los Angeles moved more cargo in 2017 than in any time in the Port's 110-year history, racking up 9,343,192 Twenty-Foot Equivalent Units (also known as a 20' container). This is a 5.5% percent increase over 2016's record-breaking year. It's was the most cargo moved annually by a Western Hemisphere port. This growth was a result of technology upgrades which aggregate key cargo data online to facilitate better cargo tracking, projections, and productivity. The Port's infrastructure was also upgraded to service increasingly larger ships.

TRUCK MANUFACTURING RUNNING AT HIGH THROTTLE:

Fleet operators ordered 32,900 Class 8 trucks in November, a 70% boost over a year ago, giving truck makers their strongest two-month stretch for orders since the start of 2015. Trucking companies are adding capacity as strong economic growth fuels surging ship volume and prices. Carrier confidence is high for 2018, providing relief to many in the industry that laid off workers in 2016 as orders fell to multi-year lows. The only brake on the fleet owners' expansion plans, in fact, may be finding enough drivers to run the big rigs.

Sources: PPAI Magazine, WSJ Logistics Report

If you'd like to apply 30 years of insider knowledge to a targeted fulfillment solution for your next program, please contact us. We work with 11 tried-and-true warehouses throughout the country, each having different strengths, IT capabilities, production capacity and shipping rates. Based on the specifics of your program, we will expertly negotiate, select and manage your fulfillment project with unsurpassed customer service.

Please call us at 818.262.0613 or reply to this email so we can talk about costs and efficiency for your supply chain.

Are you anxious about mingling at social events?

Do you struggle with the topic from which to initiate a conversation?

How do you best display your intellect, wit and conviviality

at the next summer BBQ?

We have the answer:  Warehousing and Fulfillment Trivia!

Opening a conversation with obscure warehousing facts is an excellent way to establish an instant bond with a new acquaintance at your next social outing.  He or she will surely remember you and your unique and clever repartee.

Here are some little-known facts about fulfillment from which to build that fast, new friendship:

Q:   "Do you know how many pallets fit on a container ship?"

A:    18,000 - 20,000

Q:   "What is the value of the products moved through the Ports of Los Angeles every day?"

A:    $1 Billion

Q:  "Which Major League Baseball team sells the most branded merchandise?"

A:    New York Yankees (followed by the Los Angeles Dodgers and Chicago Cubs)

Q:   "Do you know how many warehouses Kelly Direct has?"

A:    Eleven.

Q:   "How would an assortment of warehouses streamline fulfillment operations and enhance your bottom line?"

A:   Based on over 25 years experience, Kelly Direct selects a tried-and-true warehouse(s) based on project suitability, proximity to the port, proximity to ship destination(s), IT sophistication, storage capability, ability to rapidly expand labor, and more. Our goal is to offer you and your customer extraordinary service at the lowest wholesale rates in the facility that makes sense.

Thank you!  Good luck practicing your new networking skills.  We are always happy to provide you, your clients, your friends, your relatives and complete strangers with insider fulfillment knowledge.