Afternoon Coffee: Some tariff payments delayed; Manufacturing hits 11-year low; DPW cancels Amsterdam event; ’50/50′ videos for APEX Analytix, Seal Software

tockfotocz/Adobe Stock

Importers to the U.S. can delay some tariffs on goods imported during March and April 2020 for 90 days after a new rule was passed by the U.S. Treasury Department and Customs Border Protection, Supply Chain Dive reports. However, not all importers qualify for this exemption. Those that do must demonstrate “significant financial hardship” and have had their operations fully or partially suspended during March or April due to the government's coronavirus restrictions limiting commerce, travel or group meetings.

This new rule will not apply to all imports, especially the current tariffs on Chinese goods included in Section 232, Section 201 or Section 301. Anti-dumping duties are also not eligible.

U.S. manufacturing hits 11-year low

U.S. manufacturing sank to an 11-year low in April due to disruptions from the coronavirus pandemic, Reuters reports. The news supported analysts' worries that the U.S. economy was sinking into a recession. The Institute for Supply Management said that its index of national factory activity, the PMI, dropped to a reading of 41.5 in April, down from 49.1 in March. This is the lowest level since April 2009, during the height of the Great Recession.

Although a reading of under 50 indicated contraction in the manufacturing sector, the readings were not as bad as economists polled by Reuters had predicted.

Digital Procurement World 2020 canceled

Digital Procurement World has announced the cancellation of its Digital Procurement World 2020 event in September due to the coronavirus pandemic, the company said in a press release. With participants from over 30 countries expected to participate in the Amsterdam event but no coronavirus vaccine in place, canceling the event was the only way to ensure the safety of potential participants. An online community is being built for a summer debut, DPW said.

"This week was the toughest week of my life," DPW Founder Matthias Gutzmann said in an email announcing his decision. "It was heartbreaking to tell the sponsors, startups, partners, delegates and my family that Digital Procurement World 2020 is canceled."

DPW is working with SaaS community platform Zapnito to create an online community as an extension of the event. And it is looking to secure dates for the 2021 conference.

Analyst videos highlight APEX Analytix & Seal Software on new ‘50/50’ lists

Spend Matters’ analysts chose 2020's top procurement technology vendors for the “50 to Know” and the “50 to Watch” lists that were recently published, and our analysts also have done videos about some of the providers that will attend the digital SIG Procurement Technology Summit, which begins May 11. The videos are out now, and Afternoon Coffee will feature a couple of them each day.

APEX Analytix, a supplier management provider:

"They’ve built one of the more capable supplier management solutions in the market, especially with a focus on supplier information management, supplier onboarding and compliance management,” says analyst Magnus Bergfors, Vice President of European Research for Spend Matters. See our full APEX Analytix video here.

Seal Software, a contract management provider:

Pierre Mitchell, Chief Research Officer of Spend Matters, says of Seal Software: “Seal is a provider of artificial intelligence-based knowledge management, AI-based contract analytics and broader document analytics, but they’re really known for their application of artificial intelligence in the area of contract management.” See our full Seal Software video here.

The 50/50 lists are part of Spend Matters Almanac, a directory of more than 500 providers that offers deep insights on the players in the procurement technology market.

Two largest U.S. banks submit $46 billion in emergency aid loans

For the second round of coronavirus-stimulus aid, JPMorgan Chase and Bank of America said they have submitted nearly half a million applications for small businesses to the Small Business Administration’s (SBA) Paycheck Protection Program, Reuters reports. The applications are worth nearly $46 billion. However, fewer than 30,000 applications between the two banks have been approved so far.

This announcement comes shortly after the SBA closed the program to big banks for 8 hours to give smaller banks a chance to access the program. That move also follows concerns about the first round of stimulus and criticism that some banks served their clients first, instead of businesses with the greatest needs. In the second round, big banks said they don’t know the status of the bulk of applications that were submitted this week.

Airfreight capacity drops as demand grows

Airfreight volume dropped more than 15% year-over-year (YoY) in March even though freighters are dealing with high demand, Supply Chain Dive reports. Freight capacity fell by almost 23% YoY in March, as passenger airlines were canceled due to the coronavirus pandemic, eliminating belly cargo space, according to the report. International flights lost 44% of their usual belly cargo space.

Passenger planes are being converted to all-cargo operations, and carriers that specialize in airfreight are seeing increased demand. Additionally, shipping costs have gotten more expensive during the coronavirus crisis. Rates between China and the U.S. increased 189% between February and April.

Spend Matters PRO offer extended for May

Now through May, a Spend Matters' special PRO Expert Survival Pack is available to procurement practitioners only* at up to 50% off. The discount applies to PRO subscription content from our analysts and other services. — Learn more

Read all of Spend Matters’ coronavirus coverage here.

Share on Procurious

Discuss this:

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.