As a result, corporate supply chain and risk mitigation planners have also been receiving unprecedented attention within the C-suites of trade-dependent companies. And while one could certainly argue these instances were once-in-a-lifetime events, as the saying goes: “Once-in-a-lifetime events happen every day.”

It also doesn’t take a pandemic to bring your supply chain to its knees as there’s a broad array of factors that can also do the job quite nicely. As a result, corporate risk mitigation planners need to be including these when vetting either a new foreign supplier or a new foreign production site.

These factors include geopolitical tension, business/government crime and corruption, financial stability, power grid stability, natural resources, available labor pool and stability, and even the risk of disruption due to weather and geological events.

In addition, companies are now also faced with a growing set of challenges and risks associated with environmental, social, and corporate governance (ESG) requirements—from a company’s efforts to reduce climate change and carbon emissions, to its demonstrated support of inclusiveness and human rights. 

And it’s the latter, in the form of forced labor, that has now quickly grown into a major issue with real risk for trade-dependent companies.

The Shocking Reality of Forced Labor 

At face value, just the term “forced labor” alone and the images that it conjures generates overwhelming public abhorrence to this practice even without fully understanding its true magnitude, or how deeply it’s embedded in the complex production and movement of goods around the world. 

For example, the International Labour Organization estimates nearly 50 million persons are living in modern slavery, with 28 million of those working under forced labor conditions, including more than 3.3 million children.

It’s a problem found at every stage of the supply chain—from workers made to harvest fields or mine metals at the raw material level, to those forced to manufacture parts or assemble finished products on the factory floor—making it highly difficult to spot, much less eradicate. Exploitation even extends to the warehousing and shipping operations that connect each point in a supply chain network. 

While these human rights violations exist nearly everywhere in the world, they are particularly prevalent in Asia and the Pacific region where more than 11 million people are in forced working conditions. Unfortunately, the problem doesn’t stay confined there. Materials and goods produced across this region eventually make their way into the global marketplace. Other businesses and consumers unknowingly (and sometimes knowingly) end up making purchases tainted by slave labor or child labor—which only fuels the vicious cycle. 

Atrocities in Xinjiang Spur Action 

In recent years, the Chinese government has committed crimes against humanity, such as imprisonment, torture, surveillance, and forced sterilization. These horrific acts target the Uyghur people, a predominantly Muslim ethnic minority, as well as members of other mostly Muslim minorities in Xinjiang. 

Since 2017, the Chinese government has involuntarily detained more than one million Uyghurs in forced labor camps, while separating families and sending others to work in factories throughout China. With forced labor so prevalent, it’s highly likely that any goods coming from the region are products of the severe exploitation of the Uyghur people. 

What will it take to eradicate human rights violations in the supply chain? There is no easy answer, but it will certainly require the combined efforts of governments around the world, as well as the cooperation and political will of businesses who import materials and goods originating from high-risk areas. 

The United States government has recently taken strong steps with the Uyghur Forced Labor Prevention Act (UFLPA). Signed into law by President Biden on December 23, 2021, the ULFPA is designed to prevent goods made wholly or in part with forced labor in the Xinjiang region of China from entering the United States. 

Located in Northwest China, the Xinjiang Uygur Autonomous Region is a massive territory that’s rich in natural resources. The area supplies global supply chains with significant amounts of important industrial materials, as well as agricultural products—like the polysilicon used in solar panels and the cotton for Western apparel.

And the target list continues to grow as evidence is collected from third-party sources, which now includes products made with aluminum or PVC. However, the region is also fraught with state-sponsored oppression and human rights abuses. 

The Complexities of UFLPA Compliance

The United States officially condemned China’s actions, and on June 21, 2022, the U.S. Customs and Border Protection (CBP) began enforcing the UFLPA. As part of the act, the Forced Labor Enforcement Task Force (FLETF) developed and published the UFLPA Entity List which currently identifies 31 companies affiliated with forced labor in Xinjiang, and is organized by the following four groups: 

• Entities in Xinjiang that mine, produce, or manufacture wholly or in part any goods, wares, articles, and merchandise with forced labor
• Entities that work with the government of Xinjiang to recruit, transport, transfer, harbor, or receive forced labor
• Entities that export products made by the groups listed above from China into the United States
• Facilities and entities that source material from Xinjiang or from persons working with the government of Xinjiang for the purposes of any government-labor scheme 

So based on the above, complying with the UFLPA may appear pretty straightforward in that all I need to do is screen against any of the identified companies, or a Xinjiang address, right? Wrong—and this is where it gets incredibly complex.

For instance, some of China’s largest nickel, copper, and lithium producers, which are used in the production of electronic components, have been accused of using forced labor in XinJiang. As a result, any company that sources electronic components is at risk of having their shipments detained under UFLPA’s application of ‘rebuttable presumption,’ regardless of where sourced. In other words, guilty until proven innocent. 

If a company feels that their detained goods are not subject to the UFLPA, they must request an ‘applicability review’ with CBP and supply CBP with sufficient documentation to support their rebuttable.

Per CBP: “To demonstrate that the UFLPA does not apply to a shipment identified for examination under the law, importers will need to provide documentation produced in the ordinary course of business that details the order, purchase, manufacture, and transportation of inputs throughout their supply chain.” 

One can quickly see that, while in support of a worthy cause, how this will place substantial time, cost, risk, and complexity to corporate supply chains.

As of this writing, CBP has already detained 3,327 shipments linked to industries associated with Forced Labor in XinJiang—which include industrial metals, clothing and apparel, industrial electronics, polysilicon, automotive components, construction and building materials, and consumer electronics—resulting in 424 seizures worth $806 million.  

Best Practices for UFLPA Compliance

Although CBP acts as the government’s UFLPA watchdog for shipments arriving at a port of entry, a company’s screening activities need to be taking place far in advance of a purchase order being issued. As a result, every company will need to review their potential exposure to this risk, and then, as applicable, develop new policies, procedures, and controls to help mitigate that risk.  

Here are some emerging best practices for importers to consider, based on people, processes, and supporting solutions, that could help ensure an effective program for complying with the UFLPA.

People: Understanding the rules 

Given the UFLPA’s potential to add substantial operational cost to corporate supply chains—not to mention CBP’s ability to seize entire shipments—companies need dedicated expertise that can follow the ever-changing list of targeted entities and products. 

• Hire or assign personnel that can serve as the company’s point-of-contact and subject-matter-expert on forced labor and related ESG issues. Depending on a company’s level of potential exposure, this could be headed by a corporate ESG compliance officer 
• Create a corporate ESG council with representation from all key business operations; Include third-party service providers, as applicable
• Join ESG industry groups to gain awareness to best practices
• Conduct regular education and awareness training sessions

Processes: Proactive vetting of suppliers and products 

• Perform an initial review of your company’s products to establish a risk baseline
• Perform proactive vetting of your suppliers and products before a purchase order can be issued. (This exercise should also include the other risk factors that were mentioned at the beginning of the article)
• Ensure sourcing, procurement, and trade & customs departments are aligned and working together 
• Implement supplier questionnaires/sourcing affidavits as an important part of your documentation  
• Develop documented policies and procedures and post them on your company’s internal website
• Have legal counsel review your procedures to ensure that they meet CBP’s definition of ‘reasonable care’
• Publish your company’s ESG-related activities and achievements to support market brand reputation and consumer trust

Supporting solutions: How technology can help

• Supplier relationship management (SRM) tools make it easy to improve supplier selection, monitor performance, and organize all supplier compliance documentation
• Supplier portals to help facilitate, manage, and collect supporting data and documentation
• System screening tools, such as those used for denied party lists, to identify UFLPA entities and products
• Since importers often only have visibility into their direct suppliers, these connections are not always obvious. For instance, an importer may know what country its direct suppliers source goods from, but not how or where that supplier obtained its materials. As a result, companies should explore systems which specialize in risk mitigation, capable of performing deep reviews of supplier relationships (CBP has announced its own plans to adopt enhanced supply-chain tracing technologies that support UFLPA enforcement)
• While the above recommendations are specific to complying with the UFLPA, automated trade management solutions in general will help drive process efficiencies, ensure goods clear quickly through CBP, and can capture missed savings through duty/tax minimization strategies

Through heightened due diligence, a strong understanding of their supply chains, and the right supporting technology, importers can do their part in the fight to help eradicate human rights violations around the globe.

The post How Importers Can Comply with the Uyghur Forced Labor Prevention Act appeared first on Inbound Logistics.

However, Kearney analysts see strong indications that attitudes and strategies about reshoring and nearshoring are changing. Thanks to the pandemic, trade wars and tariffs, and ongoing resulting supply chain disruptions, American companies are getting more serious about adopting expanded versions of reshoring, according to the Index.

CEOs and manufacturing executives of American companies report a positive and growing sentiment for reshoring compared with last year, despite the continuing drop in the Reshoring Index. And, companies are seeking to invest in manufacturing assets in the United States and in Mexico, hoping to eventually build a manufacturing ecosystem here that could rival what exists in China.

The report also points to an evolving definition of reshoring, incorporating and leveraging models where, for example, components and materials supplies are nearshored and final automated assembly and testing is done in the United States.

Key findings from the survey include:

• 92% of executives express positive sentiments toward reshoring.
• 79% of executives who have manufacturing operations in China have already moved part of their operations to the United States or plan to do so in the next three years.
• Starting in Q4 2020, U.S. reliance on China diminished as the other Asian LCCs started to recover from the pandemic and American companies began to again diversify away from China as they had begun to do before the pandemic.

The post Reshoring Now: Boom or Bust? appeared first on Inbound Logistics.

FISCAL Fitness

Here’s a sampling of statistics about the fitness equipment industry, compiled by RunRepeat and other sources, that helps to illustrate its status today.

• The fitness equipment industry is estimated to be worth $11.3 billion as of 2021, up 11% from 2020.
• The fitness equipment industry is projected to be worth anywhere from $14.7 to $21.1 billion by 2028.
• One of the biggest growth markets globally is China, which is expected to have a 16% compound annual growth rate in the industry from 2021 to 2027.
• Consumer fitness equipment sales grew 68.4% from $3.3 billion in 2010 to $5.6 billion in 2020.
• At-home fitness equipment sales shot up 218% in 2021.
• By 2024, cardio equipment such as treadmills, ellipticals, and recumbent bikes will make up 65% of the total fitness market.
• Online fitness is expected to grow by 33% year-on-year, making it a $6-billion slice of the annual fitness industry by 2027, according to Uday Anumalachetty, divisional vice president at FitnessOnDemand.
• Planet Fitness is the largest fitness center (in terms of members) in the world, with more than 2,200 clubs, primarily in the United States, Canada, and Australia.

Pandemic Gives Fitness Field a Workout

Like most industries, the fitness equipment field changed dramatically when the pandemic struck. In particular, sales of fitness gear, gadgets, and apparel soared in 2020 as consumers stuck at home and locked out of gyms invested heavily in new equipment for their homes.

“As soon as the lockdowns took effect, the home-fitness business took off like wildfire,” Matt Powell, vice president and senior industry adviser for the NPD Group told the Washington Post last year.

Health and fitness equipment revenue more than doubled to $2.3 billion, from March to October 2020, according to NPD data. Some manufacturers, in fact, struggled to keep up with demand, particularly as sales of stationary bikes tripled and sales of treadmills jumped 135%, according to the Post. Dumbbells also saw a sharp sales spike.

The trend also extended beyond exercise-style equipment, leading to increases in the purchases of products such as bicycles, kayaks, and cross-country skis.

Meanwhile, gyms suffered major initial losses and operational challenges amid widespread shutdowns that particularly put pressure on those already struggling. Gold’s Gym, 24 Hour Fitness, and Town Sports International, the owner of the New York Sports Clubs and Lucille Roberts chains, all filed for bankruptcy protection in 2020. More than 9,000 gyms, clubs, and studios closed for good as a result of the pandemic, estimates Mark Williamson, co-founder of ClubIntel.

As vaccinations became available and gym doors reopened, fitness center numbers began to rebound. The home gym will never replace retail gyms, which will always offer the advantage of a social environment and a wide assortment of sophisticated equipment, notes Joanna Zeng O’Brien, a Moody’s analyst who covers the fitness industry.

For most equipment manufacturers, serving both home and retail gym markets is nothing new. But many gyms extended their presence into the home market as a result of the pandemic with apps that help members work out away from the facility.

“There is the convenience of working out from home, but people also want to go to physical locations. People miss that,” O’Brien says. “Fitness companies that want to stay around and not become obsolete have to do both.”

Peloton Pedals it Back

Perhaps no home product will be more associated with the pandemic than the stationary bike, particularly the one made by Peloton. The company’s fortunes have fallen since demand exploded in the first year of the pandemic, and it has faced an array of challenges.

In one of the latest legal efforts surrounding the competing home-fitness equipment companies, NordicTrack’s maker iFit Health & Fitness has filed a U.S. trade complaint seeking to block imports of Peloton Interactive’s stationary bikes

The case centers on the Peloton Bike+ stationary bikes that alternate between bicycling and weight lifting. In May 2021, iFit was issued a patent for an invention involving stationary bikes that have free-weight cradles. The company uses the invention in several studio bike models. In its complaint, filed with the U.S. International Trade Commission, iFit says, “The unauthorized use of patented inventions by Peloton is pervasive,” reports the American Journal of Transportation (AJT).

Peloton and iFit already have a legal case over patents in federal court, but AJT notes that the U.S. International Trade Commission tends to work faster than district courts and has the authority to stop products from crossing the U.S. border, which could create a major headache for Peloton. The company’s Taiwan-based manufacturers, Tonic Fitness and Rexon Industrial Corp., are also named in the complaint.

The case is not the only one before the trade commission involving Peloton and iFit. Both are accused, along with Mirror owner Lululemon Athletica, of infringing patents for streaming video over the internet by Dish Network Corp. and its Sling TV.

In March 2022, CNBC reported on Peloton’s efforts to overcome the struggles it has faced since the surge in the pandemic’s early days, including declining demand for at-home workout products and heightened supply chain expenses. The company’s stock shares dropped 80% over 12 months and it replaced its CEO early in 2022.

Treadmill Market Not Standing Still

Among the oldest exercise equipment categories is the treadmill market, and they remain a popular choice in fitness-minded homes and the health clubs where rows of the machines have long been such a familiar sight, finds a report from Allied Market Research.

The report shows that the global treadmill market was valued at $3.2 billion in 2020 and is forecast to climb to $5.9 billion by 2030, enjoying a compound annual growth rate of 5.1%. Treadmills represent the highest-selling exercise equipment category in the fitness industry, “well ahead of others,” according to the Sports & Fitness Industry Association. The treadmill industry now includes hundreds of manufacturers globally, estimates Allied Market Research.

Although the category encompasses both manual and electronic treadmills, the treadmill industry is dominated by the electronic-based products. Users have come to expect treadmills that provide sophisticated measurements and guidance, helping them understand the nuances of their workouts and the effort they are putting into them.

Treadmills were among the fitness categories to see increased demand when the pandemic arrived and pushed many consumers to seek personal pieces of fitness equipment for their homes. Still, the commercial segment of the global treadmill market remains much larger than the residential segment, according to Allied Market Research.

The specialty store segment reigns over franchise and online stores among distribution channels. Allied Market Research points to that segment’s advantages in providing consumers with more detailed expert guidance. However, online stores are expected to be the fastest-growing segment through 2030 as e-commerce becomes increasingly popular and simple for customers to use.

The post Vertical Focus: Exercise Equipment appeared first on Inbound Logistics.

China’s September 2019 trade outlook registered a four-point decline from June to an index value of 45, according to the DHL data. Mainly driven by a significant eight-point fall in overall air trade, the bright spots of growth in air imports appear set to carry the fall in exports.

China’s air imports of basic raw materials, machinery parts, chemicals and products, and temperature- or climate-controlled goods will be the biggest near-term contributor to trade growth, although challenges faced by air exports will negate that growth, the data suggests. September 2019’s ocean trade outlook remains unchanged from June’s index value of 47.

"The increase in air imports of raw materials and machinery parts is in line with China’s recent plans to move from high-speed to high-quality growth, concentrating on the adoption of artificial intelligence, smart manufacturing, and renewable energy to establish country-wide infrastructure projects," says Steve Huang, CEO, DHL Global Forwarding Greater China.

The data also suggests that world trade remains at a crossroads and will further lose momentum through November, albeit at a slower pace than the previous quarter. A drop in air trade alone triggers the current decline, while the global ocean trade outlook remains stable. All seven nations surveyed reveal indexes below 50 points except for Japan and the UK, where forecasts show positive growth momentum. In the Barometer methodology, an index value above 50 indicates positive growth, while values below 50 indicate contraction.

The trade conflict between China and the United States continues to simmer, resulting in an overall subdued trade mood. It is expected that U.S. trade will shrink further, remaining in negative territory with 45 points, despite having climbed one point since June.

The post China’s Trade Outlook Declines as Air Drags appeared first on Inbound Logistics.

Within the 127 cities qualified for the project, China will build inland harbors, cargo ports, airports, service-oriented ports, commerce and trade-oriented ports, and inland border ports.

The primary goal of these logistics hubs is to integrate automation into new ports and smart warehouses, and incorporate unmanned vehicles, robots, and drones into parcel-delivery processes.

Other priorities include providing a solid foundation for e-commerce and enabling express air and high-speed rail logistics, cold-chain processes, and cross-border delivery.

Among the qualified cities:

• Shenzhen
• Beijing
• Tianjin
• Nanjing
• Shanghai
• Guangzho
• Zhenzhou
• Foshan Xi’an
• Fuzhou

The post China Turns Attention to Logistics appeared first on Inbound Logistics.

China’s railways carried a total of 2.3 billion metric tons of cargo between January and July 2018, up 7.9 percent from one year earlier, according to National Bureau of Statistics data. The growth accelerated from the 7.7-percent rise registered in the first half of 2018, and 7.2-percent increase for January through May. In July alone, railway freight climbed 8.7 percent year on year to 337.12 million metric tons.

Rail, road, water, and air carried a total of 27.54 billion metric tons of cargo in the first seven months, up 6.8 percent year on year.

The data adds to indicators that show resilience in China’s economy, which recorded strong growth of 6.8 percent in the first half of 2018, on track to achieve the government’s annual target of 6.5 percent.

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Here’s what you should know:

• The 25-percent duties are based on country of origin, not country of export, and apply only to Chinese products.
• Sectors subject to the proposed tariffs include aerospace, information and communication technology, robotics, and machinery.
• There are two lists of affected products: one goes into effect on July 6, and another that potentially goes into effect later in summer 2018.




• The first list includes 818 tariff lines valued at $34 billion worth of imports from China. You’ll find the list here: bit.ly/TariffList01
• The Office of the U.S. Trade Representative (USTR) recommends a second list, adding 284 product lines to the Section 301 tariffs that cover approximately $16 billion in Chinese imports. This list will now undergo further review through a public notice and comment process, and another hearing. You’ll find the second list here: bit.ly/TariffList02
• Any of the 818 products on the list of tariffs published by the USTR that are admitted into a U.S. foreign trade zone (FTZ) on or after midnight July 6 may be admitted only as "privileged foreign status," except for products eligible for admission under "domestic status," which are subject to the Section 301 duties. Both "privileged foreign status" and "domestic status" FTZ admissions will be subject to any Section 301 duties upon entry for consumption.
  

  Understanding Tariff Impacts

1. Run an ACE report of your imports and identify items by Harmonized Tariff Schedule number and Chinese country of origin. Calculate the additional 25-percent tariff expense using the imported value of these goods, and provide to upper management for further action.
2. Work with purchasing to determine if they procure any of these items domestically. These items will become much more expensive from your supplier due to the tariffs, and you should consider other sourcing options.
3. All importers of items on the second list proposed for Section 301 tariffs should consider providing comments to USTR. The effort appears to pay off: After considering comments in its initial review, the USTR removed 515 tariff subheadings from the original list of 1,333 proposed items. Submit comments here: bit.ly/SubmitCommentsHere. For more information about the hearings and request for public comment: bit.ly/NoticeOfAction
4. If your company uses FTZs for manufacturing, consider commenting to the USTR on the unfair treatment of tariffs applied to "non-privileged" parts and materials. Currently, removal from the zone of Section 301 items must be reported at "the highest value foreign component country of origin" on entry documentation. This means the value of non-privileged foreign status parts and materials legally admitted to an FTZ for manufacture into a different finished product will be assessed the additional tariff, even when substantial transformation takes place to create a U.S.-origin good.
5. Consider utilizing duty drawback. Importers can get a 99-percent refund of duties paid on imported Section 301 items that are subsequently exported or assembled into a finished good, then exported. If this program did not have a benefit in the past for your company, it may now.

The post How to Prepare for Proposed China Tariffs appeared first on Inbound Logistics.

Highlights of the report include:

• As many as 73 percent of North American companies consider China their top sourcing destination and more than 85 percent of them have voiced concerns about tariffs and protectionism.
• Chinese manufacturers remain unperturbed, with a 5.9-percent year-on-year increase reported in inspection volumes.
• Sourcing outside of Asia maintains an upward trajectory, reflecting the ever-increasing diversification of sourcing patterns. The Latin America region is seeing a large increase, with first-quarter demand for inspections and audits increasing more than 26 percent year-on-year.
• Health and safety issues are still a big concern in 2018. This year, these issues overtook other challenges such as wage compliance.
• Brands and manufacturers are still struggling with environmental challenges, leading to a stronger demand for environmental audits. Pollution and waste management accounted for 80 percent of non-compliances, with more than two-thirds of these cases classified as major, finds AI.

The post Outsourced Manufacturing: Ethical and Environmental Concerns Grow appeared first on Inbound Logistics.

Shippers are watching Cuba closely, and analyzing market and product gaps waiting to be filled. There are, however, many unanswered questions and misconceptions around sanctions.

With the high potential for fines or, more likely, seized shipments, global trade and supply chain managers need to take a critical look at the changing realities of sanctions, sourcing, and compliance when trading with Cuba.

Here’s a current roundup of key questions and answers:

I do not have the time to follow embargoes while running my business. Is there anything I can do to mitigate risk?

Companies need to anticipate risk well before shipment and sourcing. Businesses that succeed in the global arena are those that weigh the right trade and sourcing factors ahead of, or in tandem with, sourcing and prior to transactional decisions.

How can I ensure that employees or partners do not ship to denied or restricted countries?

In the United States, companies have an obligation to ensure that they do not transact business with prohibited or restricted entities, corporations, countries, or persons.

It’s incredibly challenging, however, to collect, maintain, and update denied, restricted, and sanctioned data from multiple global lists—some of which change hourly. Technology solutions can help companies fulfill their responsibility by simplifying the ongoing research and management of sanctioned, denied, and restricted party details, and by automating the practice of screening customers, prospects, suppliers, employees, and more against this data.

How can I ensure that my transactions are screened prior to purchasing?

Cloud-based technology solutions are available to help companies of all sizes quickly and efficiently screen customers, suppliers, and/or trading partners against a database of international restricted and denied party lists.

The most advanced solutions allow companies to tailor screening processes to fit unique risk parameters—for example, a medical equipment supply company needs different screening lists than a financial services business—transaction volumes, and any integration requirements with enterprise resource planning or global trade management systems.

How do changing diplomatic relations impact sourcing?

Sourcing goes hand-in-hand with practical distribution and transport. If properly vetted line-item and party details can populate manifests, then companies can enjoy added efficiencies and are better equipped to focus on business development. Supply chains must be responsive to changing denied-party screening status, and incorporate fluctuating duty rates or trade agreements into the sourcing and/or manufacturing equation.

In addition, leading companies are uniting denied party screening with supply chain trends. From volume data, commodities, and production inputs, market leaders are qualifying overseas trading partners and monitoring cross-border supplier relationships to reveal meaningful business intelligence.

If I am in a location that is authorized to ship to Cuba, what other regulations do I need to adhere to? What is a security filing?

More and more countries are adopting the World Customs Organization’s (WCO) Standards to Secure and Facilitate Global Trade (SAFE Framework) modernization initiative and implementing security filing requirements. In addition to exporters and carriers, global security filings are also becoming the responsibility of forwarders. With security filing requirements on the rise, and countries such as Cuba adopting advance manifest requirements, intermediaries and/or carriers must capture required information from shippers and transmit the data to customs agencies. Technology solutions can help companies stay up to date with evolving security filing capabilities.

My company is really about the bottom line; however, how can I counter the potential for fines?

Many companies have discovered that streaming data into leading business applications is a prime opportunity to consolidate screening processes. With the right content populating existing systems, businesses are better equipped to avoid fines, improve processes, and mitigate risk.

It is essential, however, that companies not drain IT resources to establish this type of robust connectivity. Technology and expertise are often required to map existing fields and databases to ensure that information seamlessly powers systems via a number of electronic methods and protocols.

—Joe Mallozzi, Vice President, Transportation Management, Descartes

The post U.S.-Cuba Trade: Where Do Sanctions, Sourcing, and Compliance Meet? appeared first on Inbound Logistics.

UPS is the world’s largest express delivery company and a major global supply chain integrator. SF is China’s market leader in express delivery, with extensive China-wide network coverage, comprehensive service capabilities, and the highest brand recognition in the Chinese small package industry. The newly approved joint venture continues a UPS and SF collaboration that began in 2015, when UPS Worldwide Express service was made available at SF’s Heike retail stores in Shanghai and Shenzhen.

Aligning the two transportation networks provides global shippers with greater coverage, additional routing options, increased capacity, and more choice in transit times and service options.

Shippers seeking an economical solution for less-urgent shipments can opt for Global Reach Plus, the new joint venture’s deferred express product that features the full visibility and reliability of a premium express service.

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