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Huawei reviews dealings with FedEx after packages are ‘diverted’

Logistics companies including DHL confirm new processes for handling Chinese tech firm’s shipments after US places it on ‘Entity List’ or trade ‘blacklist’.

Chinese telecoms equipment maker Huawei is reviewing its dealings with FedEx after it claimed the US package delivery company diverted two parcels destined for Huawei addresses in Asia to the US and attempted to divert two others, without detailed explanation, according to media reports.

The US Commerce Department this month placed Huawei and around 70 of its affiliates on a so-called ‘Entity List’ or trade ‘blacklist’, preventing Huawei buying certain items from US companies without US government approval.

Reuters said it had been informed by Huawei on May 24 that FedEx had diverted two packages sent from Japan and addressed to Huawei in China to the United States. In addition, the express transport giant had attempted to divert two more packages sent from Vietnam to Huawei offices elsewhere in Asia, all without authorisation, providing images of FedEx tracking records.

Responding to questions from CEP-Research, a FedEx spokeswoman remarked: “We regret that this isolated number of Huawei packages were inadvertently misrouted and confirm that they are in the process of being returned to the shippers. The scans on the packages will show that we worked to return the packages to our customers as soon as possible.

No specific reasons have been disclosed as to why the packages were “misrouted”.

Chinese media, meanwhile, reported last week that DHL Express’ Hong Kong branch had suspended the provision of products and services to Huawei, only for the company to rescind its decision several hours later.

Deutsche Post DHL told CEP-Research: “On May 21, the US Government formally imposed new restrictions on shipments to Huawei, as well as a process for handling certain shipments on an exception basis. Deutsche Post DHL Group is committed to providing logistics services to all of our customers, including Huawei, in full compliance with applicable laws and regulations, and will continue to monitor these developments to ensure we properly handle shipments.”

 

Source: Lloyd’s

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